We are still in lockdown in Hamilton and the surrounding areas under the COVID-19 Pandemic Guidelines and probably will be till at least the end of May, even with more and more people getting their Vaccine. Open Houses are still not allowed and showing home practices are continuing to be in place to keep everyone safe during these times and that includes Buyers and their agents signing a COVID questionnaire before having access granted to come into a Sellers home. There is a maximum of 3 people allowed in the house (The Buyer’s Agent and up to 2 Buyers – No Children). There are usually 30-minute time slots available for showings, however, in some areas, there are only 15-minute time slots and overlapping appts are not allowed. Keep this in mind if you are wanting to see some properties as it is now more challenging to find a time slot available, especially if you have a few homes to see and would like to go to them in some sort of logistical order. Digital signatures are now the norm for all and are very simple to use. Our main concern is still and always will be, the health and well-being of you and your family.
The April 2021 Real Estate Market has seen a bit of a shift this month in and around Hamilton Ontario. Up until now the main strategy when Sellers were putting their homes on the market was to list well below Market Value and then hold off on looking at any offers for up to a week. This is why it looks like homes are selling so quickly in your neighbourhood. It is also why you see many Real Estate Agents posting on Social Media that “this home sold in Multiple Offers and for well over the Asking Price”. In April, we saw a different trend happening. There was a real mix of strategies Sellers were using. Some Sellers were listing their property closer to Market Value and sometimes higher than Market Value and either not selling as quickly or not at all. This is why you see some houses drastically LOWER their price, and then go back to holding offers. We are also seeing some Sellers who chose to list at what they thought was a competitive price and hold offers and do not get what they felt was enough, RAISE their price to reflect more of what they are expecting to get. This can be terribly confusing for Buyers so please make sure you are getting insightful timely advice from your REALTOR®.
April 2021 had 2370 Total Residential Listings come through the Hamilton Real Estate Board, which is up a significant amount from the very low 841 in April 2020, as reported by The REALTORS ® Association of Hamilton-Burlington (RAHB). This is not too surprising as the Pandemic was just into its first full month and no one really had a handle yet on how Real Estate was going to be affected by the shutdown. Hamilton had 1729 of those (up from 566 in 2020) and Burlington’s share was 496, up more than double from April 2020, which saw only 186 new listings. Overall New Listings were down 3% since last month and up 191% over April 2020.
Residential Sales located throughout the RAHB market area (including Burlington and all the outlying areas covered by The REALTORS ® Association of Hamilton-Burlington) of 1906 Properties are up 245% from April 2020, however, down 8% over last month, March 2021. The overall average price for residential properties decreased by 2% from last month to $855,455, which is still up by 39% from April 2020. Hamilton’s Residential Sales (including Flamborough, Dundas, Ancaster, Waterdown, Stoney Creek and Glanbrook) were 1195, up 250% from 341 in April 2020, with an average price of $786,737 up 42% from the same month last year. Burlington had 406 Sales which is up 256% from 114 last year, with an average price of $1,058,992 which is up 31% from April 2020.
The end-of-month listing inventory which is a good indication of the type of market currently being experienced has gone up from last month and sits at 837 Active Residential Listings giving Hamilton 0.7 months (less than a month) of inventory, down 57% from March 2020. Burlington has only 236 Active Residential Listings which also gives it half a month, with 0.5 months of inventory, which is down 22% from the same time last year. Overall, the number of Active Listings Available at the end of the month was 23% HIGHER than last month. The average days on the market are still low and have dropped again from 25.1 to 11.1 in Hamilton and also went down in Burlington from 21.3 to 12.3. This is still largely due to the List Below Market Value Strategy being used by many Sellers and their Real Estate Agents, so don’t be fooled by a price that looks too good to be true! Sellers are listing less than market value, and holding off taking offers for up to a week, therefore creating a bidding war atmosphere and hopefully getting many offers and selling for much higher than the asking price. This can be hundreds of thousands over the List Price, so make sure you talk to your REALTOR ® and try to get a better idea of what the Actual Market Value currently is.
Right now the Hamilton-Burlington Area is still experiencing a Strong Sellers Market, where the ratio of Homes Sold to Homes Listed is above 60%, currently sitting at 80.4%, which is slightly lower than last month. In other words, 8 homes are sold for every 10 new listings. Could this mean a softening in the market is coming? The next few months will tell us more. We are still a long way off from a Balanced Market.