Hamilton Real Estate Market Takes a Tumble For The Worse

Home prices continue to decline 

The correction in the real estate market continues in Hamilton, Ontario. The July 2022 statistics show that the correction in the real estate market is continuing. The average home price sold in July 2022 was $793,062, down 8% from the previous month but still 2% higher than July 2021. Much of the gains of 2022 have been wiped out. However, it is worth noting that the year-over-year home prices are still up. 

Detached homes saw the most significant decline in average price this past month, with a 9% monthly drop, while the average condo price was down less than 1% from the previous month. The average price of condos is still up 11% from July 2021. 

The home prices in Hamilton peaked in February this year, fetching an average price of $1,013,490, and have declined since. This means that the Hamilton real estate market is in a bear market, defined as a drop of 20% or more from peak prices. 

The number of transactions is also down 

The number of houses sold has seen a sharp decline though, both month over month, as well as year over year. Between June 2022 and July 2022, there were 26% fewer transactions, but between July 2021 and July 2022, the number of sales declined by 41%. 

Houses are also taking longer to sell now, with the average number of days on the market currently being 22.8 days, as opposed to the prior month’s 17.7 days. 

Where are we headed? 

We should not be surprised to see home prices soften slightly as the Bank of Canada continues to increase the interest rate and the nation feels the inflation impacts of the monetary policies of 2020 and 2021. Although the home prices are down this year, some citizens are feeling the inflation pinch. This, combined with the rising interest rates, makes homebuyers more tentative about diving into the real estate market. 

Is selling still viable? 

Selling is certainly still viable. Many properties are selling above their 2021 prices. However, sellers must be aware that their homes may stay on the market a little longer than before, and price expectations must remain realistic. In this environment, marketing your property is more crucial than ever, and one of the best ways to market your property effectively is through the power of real estate photography. You need not look any further than Snaphouss for your real estate photography needs. We service Canada and the US and complete all our projects in 24 hours or less. Reach out to us today if you are looking to sell your property!