Hamilton Housing Market Report
- In August 2024, Hamilton's average home price decreased by 0.5% year-over-year, with the average sold price now at $794,404 for August 2024.
- The benchmark price for a home in the Hamilton-Burlington region was $840,300 in August 2024, a decrease of 2.6% compared to August 2023 and 0.4% from last month.
- Detached home average price decreased by 1% year-over-year to $877k.
- Semi-detached average price decreased by 1.9% year-over-year to $674k.
- Townhouse average price decreased by 3.8% year-over-year to $683k.
- Condo apartment average price decreased by 0.3% year-over-year to $481k.
- September 18, 2024 Update: Today’s Lowest mortgage rates in Hamilton is 4.29% for 5-Year Fixed
Hamilton Housing Market Overview
Hamilton Housing Market: Price Movements for August 2024
Benchmark* Home Price | $840,300 | -0.4% 1-Month Change | -2.6% 1-Year Change |
Average Home Price | $794,404 | +1.1% 1-Month Change | -0.5% 1-Year Change |
Median Home Price | $728,450 | +2.6% 1-Month Change | -2.9% 1-Year Change |
*The benchmark price is for the entire Hamilton-Burlington region, including Hamilton, Burlington, Haldimand County and Niagara North. | |||
Home prices in the Hamilton-Burlington housing market have been under strain in recent months, which is evident from the benchmark home price in the region declining for the third month in a row in August 2024. Meanwhile, sales have also consistently remained below the long-term trends over the past few months. After almost two years of elevated interest rates, the Bank of Canada delivered three consecutive rate cuts in June, July and September. However, more rate cuts are anticipated, due to which some buyers are waiting on the sidelines and will likely enter the market when the mortgage rates drop further. This can be attributed as one of the reasons for the slowdown in sales.
On the other hand, inventory levels have significantly improved and reached the highest levels seen in August since 2010. As a result, buyers in the market are able to take their time before placing offers to purchase.
Home Prices
In August 2024, the City of Hamilton’s average home price declined by a notable 0.5% from August last year to $794,404. The average home price rose by 1.1% on a monthly basis. According to long-term statistics, the city's average home price has risen by roughly 45% over the past five years. Meanwhile, the average price for August 2024 is 21.6% lower than the all-time peak observed in February 2022.
The average home price for the Hamilton-Burlington region in August 2024 was $877,986, a growth of 2.5% from the previous month and a 2.6% year-over-year increase. On the other hand, the benchmark price was $840,300, posting a 2.6% decrease compared to last year and a 0.4% decrease compared to last month.
Sales
In August 2024, 424 homes were sold in Hamilton, a significant decline of 13.6% from last month and of 11.7% from August 2023.
Looking at the entire Hamilton-Burlington region, the 690 sales mark a 16.1% year-over-year and a 14.2% month-over-month decrease. Sales in the region have been consistently falling short of the long-term averages.
New Listings and Inventory
Hamilton’s new listings had been surging year-over-year over the past few months; however, this month’s 955 new listings were 1.1% below the new listings in August last year. Despite that, the inventory at the end of the month was 32% higher than last year. Hamilton’s real estate market had an inventory of 1,922 homes at the end of August 2024. Meanwhile, the market had 4.5 months of supply available at the end of August. The average number of days on the market for a home in Hamilton is 34.8 days.
Hamilton’s sales-to-new-listings ratio (SNLR) for the month was 44%, which is higher than the SLNR of 40% last month. An SLNR between 40% and 60% generally indicates balanced market conditions, meaning the market favours neither the sellers nor the buyers. Meanwhile, an SLNR below 40% suggests that the market is a buyer’s market.
The SLNR has been trending closer to the 40% mark in the last three months, suggesting that the market may be more favourable for buyers. This is due to new listings outpacing sales, giving buyers more choice and time.
Property Types
Breaking down the Hamilton real estate market into property types, 284 detached homes were sold, along with 21 semi-detached homes, 82 townhouses, and 36 condo apartments.
- Detached homes had a benchmark price of $833,100 in August 2024, a year-over-year decrease of 3%.
- The benchmark price of semi-detached homes was $745,200, declining by 2% year-over-year.
- The benchmark price of townhouses declined by 3% year-over-year to $659,600.
- Condo apartments had a benchmark price of $460,400, a 6% decrease year-over-year.
Regional Comparison
The most expensive housing market in the Hamilton-Burlington region, Burlington, had an average home price of $1,172,556 in August 2024, a significant 10% increase from August last year. The 152 sales in the month represent an annual decline of 18.7%.
In Haldimand County, the average sale price of $786,062 marks a 10.1% growth year over year. The 50 sales in Haldimand County represent a 4.2% increase year over year. The average price in Niagara North has decreased by 2.5% yearly to $803,928. The sales in Niagara North decreased by 27.3% year over year to 64 sales. Being smaller market areas, Haldimand County and Niagara North experience a greater fluctuation in sales and average prices on a monthly basis.
Reasoning
Hamilton’s housing market has been a relatively affordable alternative to other markets in Ontario, such as the Toronto housing market, Mississauga housing market, and Brampton housing market, within close proximity of Toronto. Due to many homebuyers competing to buy a home in Hamilton during the pandemic, the average house price in the region crossed the $1M mark at the beginning of 2022.
However, the mortgage rates increased significantly in the latter half of 2022 after the Bank of Canada hiked its policy rate as a measure to control inflation. As a result, many homebuyers withdrew from the market, bringing a significant slowdown in sales and, consequently, a major drop in home prices. Homeowners unable to keep up with their mortgage payments have also been moving to sell their properties, raising the inventory levels in the market.
Looking Forward
In accordance with the recent expectations, the BoC cut its policy rate by 0.25% in three consecutive meetings — June, July and September 2024. The BoC rate now stands at 4.25%, which was last seen at the beginning of 2023. The interest rate forecasts predict that the BoC might deliver two more rate cuts in 2024. While rate cuts are expected, mortgage rates will likely stay much higher than the 2020-2021 levels throughout the year and also into 2025. However, the buyers who have been waiting on the sidelines for some time may be motivated to make a move if the home prices continue to decline.
Home Prices in Hamilton
Hamilton Housing Market Statistics for All Property Types in August 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Market Overview for Detached Homes in August 2024
Average Sold Price
New Listings
Market Overview for Semi-Detached in August 2024
Average Sold Price
New Listings
Market Overview for Townhouse in August 2024
Average Sold Price
New Listings
Market Overview for Condo Apartments in August 2024
Average Sold Price
New Listings
Hamilton-Burlington Breakdown by Region for August 2024
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the RAHB and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.