Hamilton Real Estate Sales Smash Records for a Third Month!!!!
We are always monitoring the real estate trends in the Hamilton-Wentworth area here at Robert Floris’ Mortgage Architects office. With that said, the continuing torrid pace of real estate in our area is certainly being affected by the cheap mortgage rates. The rates have fuelled higher prices. Although we are happy, we hope that the increases moderate so that we avoid any future speculation.
Hamilton and area real estate sales have smashed a record for the third month running.
New figures from the Realtors Association of Hamilton-Burlington report 2,062 properties sold in June. That’s a 31.2 per cent increase from the same month last year and follows record sales of 1,810 in May and 1,699 in April.
“The real estate market exploded in June,” association CEO Ross Godsoe said in a news release. “To break the old record — set just last month — by that much and for the second month in a row, shows just how active it was. We saw more areas throughout Hamilton — in particular where homes sold at or above list price as an average — not just in isolated cases.”
The board’s figures also show sharp increases in average prices and a drop in the inventory of available properties.
Last month the average price of a property in the Hamilton-Burlington-Grimsby area was $451,403, an increase of almost nine per cent from June 2014.
The number of properties offered for sale was 2,526, up almost 13 per cent from the same month last year.
The blistering pace of sales, however, meant the available inventory at month’s end fell to 3,698 properties, down 12.2 per cent from last year.
Godsoe said that’s extremely low.
“We are deep into a sellers’ market right now,” he said. “The two main indicators are the sales-to-listing ratio, which is high at almost 85 per cent in the residential market, and months of inventory. Right now we have less than two months’ inventory. That is extremely low when you consider that a balanced market has five to eight months of inventory.”
The average days on market decreased from 35 to 29 in the freehold market and from 37 to 30 days in the condominium market compared to the previous year.
Broken down by area, year-over-year sales in Hamilton increased 27.1 per cent, to 1,089 from 857, while listings rose 18.5 per cent to 1,285 from 1,084. The average price in the city rose 9.1 per cent to more than $368,000 from $337,480. The available inventory of properties sank 14 per cent to 1,416 from 1,646.
In Burlington 438 properties were sold in June this year compared to 347 in the same month of 2014, a spike of 28.8 per cent. Average prices rose 7.2 per cent to $576,200 from $537,700.
The number of properties listed for sale dropped 3.1 per cent to 439 from 448. Inventory at the end of the month was 463 properties, down 24.6 per cent from 614 for the same month last year.
In the residential market for the Hamilton and Burlington area, the board’s figures show sales of 1,985 homes, up 30.2 per cent from 1,525 for June last year. Listings were up 12 per cent to 2,347 from 2,097. Average days on market fell to 30 from 36 and the inventory of properties dropped almost 14 per cent to 2,967 from 3,443. Average residential prices rose 10 per cent to $449,945 from $409,193.
Robert Floris is an independent mortgage broker at Mortgage Architects in Hamilton, Ontario.