The REALTORS® Association of Hamilton-Burlington (RAHB) reports that 779 sales were processed through MLS® for February 2018 — that translates to 40.3% LESS sales than February of last year.
Moreover, sales were down more than 25% for February’s sales average over the last decade.
The average price of all residential listings was 4.0% lower when compared to February 2017, but the median price was up 1.9%.
The explanation for this difference? The luxury market being hit hardest.
Under the new rules that came into effect at the beginning of this year, purchasing expensive properties has become a lot more challenging, shortening the long tail of luxury real estate and thereby skewing the average. Cases like these help demonstrate the benefit of using median price over average price.
Average days on the market has also increased to 36; a stark contrast from 2017’s average days on the market of 22. When we look at median days on the market, February 2018 is at a fairly reasonable 21 days but that’s more than double the median days it took to sell a house a year ago.
These numbers are a bit misleading, however, as it’s easy to underrate just how insanely hot February 2017 was. A year ago, Hamilton experienced a frenzy the likes of which this city had never experienced before with buyers bidding way over asking in an effort to win heated competitions.
The winter of 2017 was a short-lived, albeit intense chapter in a larger story. Annual comparisons shed light on the current state of real estate in Hamilton but keep in mind that this year’s figures are being compared to record highs.
The fact that median prices are selling for 1.9% more than a year ago is a testament to our city’s sturdy economics despite the introduction of the province’s 16 point Fair Housing Plan.
The big success story looks to be coming from Glanbrook where prices have risen $120,000 on average during a period where many other regions decreased. Waterdown in particular saw $145,000 erased from their home prices in only a year’s time. It’s important to note that Hamilton’s rural regions have many mansions that skew averages. Here’s the breakdown by region.
It’s clear that the city is still rebalancing from last year, and the impact of the province’s regulations on Hamilton largely depends on which region your property resides within.
What are your thoughts on this month’s real estate update? Let us know in the comments!