Realtors reported another month-over-month drop in the average sale price of a Hamilton-area residential property in May, putting the cost under $1 million for the first time in 2022.
The Realtors Association of Hamilton-Burlington (RAHB) says the average price in the area hit $995,408 in May, down 1.7 per cent from April but up 17.6 per cent year over year.
A slide in sales, 5.1 per cent month over month, is likely a contributor for that recent price decline according to the RAHB’s president.
“Overall, sales activity was below typical May levels likely due to buyers sitting on the sidelines as mortgage interest rates continue to rise,” RAHB’s Lou Piriano said.
Sales were also down year over year by 31.9 per cent, according to RAHB.
Piriano says the drop in price and slow sales is also likely tied to more inventory coming on to the market compared to previous months.
May had 2,631 new listings, up 7.3 per cent month over month, and an increase of 16 per cent compared to May 2021.
“As increased inventory comes to the market, buyers have more selection, which may also lend to further negotiation power,” said Piriano.
The average Hamilton city property slipped again month over month from $949,149 in April to $901,535 in May, but was still up 13 per cent year over year.
Sales activity dropped significantly year over year, by 35 per cent. It’s also down slightly month over month by seven per cent.
A detached home in Hamilton was worth about 13 per cent more, checking in at an average of $989,661 this past May compared to the average price of around $878,677 recorded during the same month last year.
Sales of townhomes in the RAHB market area were up in May three per cent month over month, but lower by 30.5 per cent compared to May 2021.
Those prices slipped 5.6 per cent in May to $817,253 compared to April.
“Townhomes were the only property category across the RAHB market area that had an increase in the number of sales month over month,” Piriano remarked.
The average sale price of a townhome in Hamilton came in at $794,676 in May.
There was little change month to month in Hamilton proper apartment-style (condo) units checking in at $591,351 in May. Year over year, prices are up 24 per sent from the reported $477, 848 in 2021.
Burlington has the highest average price for an apartment-style home, $776,954 in May – an increase of 31 per cent year over year.
“Apartment-style properties had the highest inventory levels in May in contrast to all other property types across the RAHB market area, with nearly two months of inventory available,” says Piriano.
Flamborough continued to have the highest average price for Hamilton proper, checking in at around $1.52 million, a 31 per cent increase year over year.
The lowest was Hamilton Centre, where the average sale price of a home was $668,579 at the end of May — up 21 per cent year over year.
The average sale price for residential properties across the RAHB market area was $995,408, which was down 1.7 per cent over the previous month, and up 17.6 per cent compared to May 2021.