Hamilton Housing Market Report
- Hamilton's average home price rose by 1.4% year-over-year, with the average sold price now at $818,381 for April 2024. The average price is 19.3% lower than the all-time peak observed two years ago in February 2022.
- The benchmark price for a home in the Hamilton-Burlington region was $859,600 in April 2024, a decrease of 1.3% compared to April 2023 and an increase of 1.1% from last month.
- Detached home average price increased by 1.3% year-over-year to $913k.
- Semi-detached average price increased by 10.2% year-over-year to $705k.
- Townhouse average price increased by 0.7% year-over-year to $723k.
- Condo apartment average price decreased by 6.7% year-over-year to $464k.
- May 10, 2024 Update: Today’s Lowest mortgage rates in Hamilton is 4.74% for 5-Year Fixed
Hamilton Housing Market Overview
Hamilton Housing Market: Price Movements for April 2024
Benchmark* Home Price | $859,600 | +1.1% 1-Month Change | -1.3% 1-Year Change |
Average Home Price | $818,381 | -1% 1-Month Change | +1.4% 1-Year Change |
Median Home Price | $750,000 | 0% 1-Month Change | 0% 1-Year Change |
*The benchmark price is for the entire Hamilton-Burlington region, including Hamilton, Burlington, Haldimand County and Niagara North. | |||
In April 2024, the home prices in Hamilton’s housing market showed only minor variation compared to last year as well as last month. Meanwhile, many homebuyers are waiting on the sidelines, waiting for the anticipated rate cuts this year before moving to make a purchase. As a result, a year-over-year slowing of sales has been recorded. On the other hand, inventory levels have significantly increased, thus presenting more choices for the buyers who are in the market.
Home Prices
In April 2024, the City of Hamilton recorded an average home price of $818,381, which is an annual increase of 1.4% and a 1% monthly decrease compared to March. Despite the annual growth, the average price remained 19.3% below the all-time peak observed in February 2022. Meanwhile, the long-term statistics demonstrate that the average home price in the city has increased by 56% over the past five years.
The average home price for the Hamilton-Burlington region in April 2024 was $900,801, representing a minor decline of 0.2% from the previous month and a 0.7% year-over-year increase. On the other hand, the benchmark price was $859,600, posting a 1.3% decrease compared to last year and a 1.1% increase compared to last month.
Property Types
Breaking down the Hamilton real estate market into property types, 388 detached homes were sold in Hamilton, along with 30 semi-detached homes, 136 townhouses, and 54 condo apartments.
- Detached homes had a benchmark price of $853,900 in April 2024, a year-over-year decrease of 1%.
- The benchmark price of semi-detached homes was $760,800, declining by 1% year-over-year.
- The benchmark price of townhouses in Hamilton remained almost unchanged from last year at $664,200.
- Condo apartments had a benchmark price of $464,200, a 3% decrease year-over-year.
Sales
A total of 611 homes were sold in Hamilton in April 2024, reflecting a growth of 2.5% from last month. However, the sales activity has contracted by 5.1% compared to last April.
Looking at the entire Hamilton-Burlington region, the 1,041 sales mark a 7.2% year-over-year decrease and a 4.5% month-over-month increase. The sales were well below the long-term trends observed in the region for the month of April.
New Listings and Inventory
Hamilton’s new listings have surged significantly, with 1,257 new homes listed in April 2024 representing a growth of 32.7% year-over-year. Hamilton’s sales-to-new-listings ratio (SNLR) for the month was 49%. An SLNR between 40% and 60% generally indicates balanced market conditions, meaning the market favours neither the sellers nor the buyers. However, the SLNR has dropped by 8% from the last month, indicating that the demand has slowed compared to the supply.
The slowing of sales and increase in new listings has bumped up the inventory by 46% year-over-year, with active listings reaching a number of 1,567 at the end of April 2024. Hamilton's housing market had 2.6 months of supply at the end of April. The average number of days on the market for a home in Hamilton is 26.8 days.
Regional Comparison
The most expensive housing market in the Hamilton-Burlington region, Burlington, had an average home price of $1,152,357 in April 2024, a 0.1% decrease from April last year. The 271 sales in the month represent an annual decline of 5.6%.
In Haldimand County, the average sale price of $734,339 marks a year-over-year decrease of 0.4%. The 68 sales in Haldimand County represent a 7.9% year-over-year increase. The average price in Niagara North has increased by 1.4% year-over-year to $829,445. The sales in Niagara North decreased by 10.8% year-over-year to a total of 91 sales. Being smaller market areas, Haldimand County and Niagara North experience a greater fluctuation in sales and average prices on a monthly basis.
Reasoning
The mortgage interest rates have been the significant factor driving the housing market in Hamilton in recent times. During the pandemic, mortgage rates dropped to historically low levels, prompting many Canadians to buy a home. Many buyers found Hamilton’s housing market to be a more 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, the average house prices 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 who aren’t able to keep up with their mortgage payments have been moving to sell their properties in the last couple of months, raising the inventory levels in the market.
Looking Forward
Although the market expectations are changing continuously, the interest rate forecasts now predict that the BoC might start cutting its policy rates by mid-2024. While rate cuts are expected, mortgage rates will likely stay much higher than the 2020-2021 levels throughout the year and even into 2025.
Home Prices in Hamilton
Hamilton Housing Market Statistics for All Property Types in April 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Market Overview for Detached Homes in April 2024
Average Sold Price
New Listings
Market Overview for Semi-Detached in April 2024
Average Sold Price
New Listings
Market Overview for Townhouse in April 2024
Average Sold Price
New Listings
Market Overview for Condo Apartments in April 2024
Average Sold Price
New Listings
Hamilton-Burlington Breakdown by Region for April 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.