We are getting closer to being out of lockdown in Hamilton and the surrounding areas under the COVID-19 Pandemic Guidelines. 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 May 2021 Real Estate Market is seeing more 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 and May, we see a different trend happening. There is 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®.
May 2021 had 2102 Total Residential Listings come through the Hamilton Real Estate Board, which is still up significantly from May 2020, with 1204 as reported by The REALTORS ® Association of Hamilton-Burlington (RAHB). Year over year this makes sense as we were still in the early stages of the Pandemic. Hamilton had 1460 of those (up from 773 in 2020) and Burlington’s share was 437, up from 287 in May 2020. Overall New Listings were down 31% since last month and up 39% over May 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 1582 Properties are up 66% from May 2020, however, down 16% over last month, April 2021. The overall average price for residential properties decreased by 3% from last month to $833,332, which is still up by 27% from May 2020. Hamilton’s Residential Sales (including Flamborough, Dundas, Ancaster, Waterdown, Stoney Creek and Glanbrook) were 1137, up 90% from 597 in May 2020, with an average price of $792,746 up 31% from the same month last year. Burlington had 373 Sales which is up 90% from 196 last year, with an average price of $1,000,808 which is up 20% from May 2020.
The end-of-month listing inventory which is a good indication of the type of market currently being experienced has gone down from last month and sits at 829 Active Residential Listings giving Hamilton 0.7 months (less than a month) of inventory, down 20% from May 2020. Burlington has only 215 Active Residential Listings which gives it a little over half a month, with 0.6 months of inventory, which is down 41% from the same time last year. Overall, the number of Active Listings Available at the end of the month was 16% HIGHER than last month. The average days on the market are still low and have dropped again from 30.2 to 12.7 in Hamilton (slightly higher than last month) and also went down in Burlington year over year from 29.7 to 11.3. This is still largely due to the List Below Market Value Strategy still 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 Sellers Market, where the ratio of Homes Sold to Homes Listed is above 60%, currently sitting at 75.3%, which is slightly lower again than last month. In other words, 7.5 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.