The real estate market in Hamilton and the surrounding area started off strong in 2020. Sales volumes were on par or higher than they were in 2019, and average sales prices were up significantly. In fact, it felt a little like the boom market of 2017, with multiple offers common on many properties, and homes selling over the asking price. The number of active listings on the market was about 25% lower than 2019, which contributed to the pressure on prices.
Then of course, the coronavirus hit in mid-March, and real estate was not spared the impact that was felt across all sectors of the economy and society. Sales volumes dropped by over 50% in the second half of March and through April. And the reluctance of sellers to list their homes at this time has meant that there are even fewer listings available than normal in the peak spring market.
As we went through May and into June, we have started to see activity picking up again, although sales volumes are still well below prior year levels. The data for June is not yet available, but the market has been active, and homes are selling quickly as long as they are well priced. Average prices dipped a bit in April, but the data shows that prices recovered fast and are currently well above 2019 levels.
It is hard to predict how things will unfold for the rest of this year. As long as we don’t get a second wave of Covid 19, it seems right now that the market will be stable and reasonably strong. As things gradually return to normal and the economy opens up, I expect sales volumes will also gradually get back to their more normal levels in the second half of the year.
I also expect to see a slight increase in average sales prices through the balance of this year. The continued shortage in active listings will put pressure on prices to increase, although the economic challenges as a result of Covid 19 could work in the opposite direction.
Luke O’Reilly is a Real Estate Broker with Royal LePage State Realty in Hamilton. He can be reached at 905.525.3737 or by email at luke@lukeoreilly.com .
Source: All data from Realtors Association of Hamilton-Burlington
