The REALTORS® Association of Hamilton-Burlington (RAHB) reported the residential market saw a 13.5 per cent increase in average sale price in August compared to the same month last year. Median sale prices also saw gains over August of last year.
“The higher average price is attributable to tight market conditions. Although residential sales for the month are down compared to August 2011, listing inventory is also low leading to higher average prices.,” said RAHB President Cameron Nolan, “This is also evident in the marked reduction of days-on-market, now an average of 44 days from 55 days a year ago.”
Seasonally adjusted* sales of residential properties were 13 per cent lower than the same month last year, with the average sale price up 13.3 per cent for the month. Seasonally adjusted numbers of new listings were 8.4% per cent lower than the same month last year.
Seasonally adjusted data for residential properties for the month of August:
The seasonally adjusted average price for August is the highest we have on record. The decreased inventory has created greater competition among home buyers. In the condo market, August saw more sales than new listings, indicating a very strong seller’s market.
“Similar to the dip we saw in July, the increase in average price we witnessed in August further illustrates the effect that specific properties can have on the average price,” Nolan said.
The average sale price is based on the total dollar volume of all residential properties sold. Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.
Year to date, the average sale price for residential units is 7.1 per cent higher for the first eight months of this year compared to the same eight-month period last year. Numbers of residential property sales are down 4.1 per cent. New listings are down 8.6 per cent and there were 18.4 per cent fewer listings active at the end of the month.
“Changes in mortgage rules may be having some effect on the number of properties being sold; however, it should be noted that August’s numbers are still on par with what we’ve seen over the past few years.” added Nolan. “We also saw the second lowest number of seasonally adjusted listings in the last 24 months, which may keep consumers in the market longer, trying to find that perfect home.”
Every community in RAHB’s marketing area has their own localized residential market. Please refer to the accompanying chart for residential market activities in select areas of RAHB’s jurisdiction.
*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.