2020 1st Quarter Review
Wow, what a crazy and unpredictable start to the year not only in the real estate market but for the entire globe. Life as we know it has changed. Business as we know it has changed. The Ontario government included real estate services, legal and land registry as an essential service, but by no means is this business as usual for realtors or their clients.
We started the year with an increase in sales and new listings as well as the average sale price as compared to January 2019. The rising trend continued throughout February and into the first half of March. Mid-March is being referred to as the post-COVID-19 period when the pandemic swept across the nation and the world pretty much came to a halt.
The real estate market of Burlington & Hamilton continues to remain active as people needing to relocate still moved and properties are still being listed and purchased, however, data shows that the number of transactions was less in the latter part of March. Home prices didn’t drop, at least they haven’t yet. Due to the COVID-19 chaos, some people may have been caught in the middle of the buying and selling process and needed to sell their home to close on the new home they already purchased, which may have caused listings to sell for a little bit less than what they had anticipated and/or listed at.
According to the Burlington and Hamilton stats, March home sales are up 10 percent over last month, but down 3.1 percent compared to March 2019. The only reason that transactions are less this March then in 2019 is due to the impact of the post-COVID-19 period beginning on March 15, 2020, where new listings and sales have been affected. In Burlington, the average sale price is also up 12.4% from last March with the average sales price being $843,229 instead of $738,823. In Hamilton, the average price for residential properties increased to $605,140 which is up 1.8 percent from last month and up 14.5 percent from the same time in March last year.
Pre-Construction sales have also slowed down a bit, however for people that have the ability and the foresight to purchase a unit today that will be completed in a year or more from now will benefit greatly when the unit is completed. I know that many builders are currently offering a special incentive package at this time to continue to drive sales and other builders have chosen to delay the launch of their new projects. I don’t have a crystal ball and I am not going to pretend I know what is ahead for us, but I am very confident that this won’t last forever and as they say History repeats itself and every time our economy has taken a hit, small, medium or large, Real Estate has always been one of the first to bounce back and always surpasses where it was before. Why? Simply because everyone one of us needs a roof over our head and the supply has been short and demand has been high for the last few years, I don’t see this trend changing either.
The CRESI Team of RE/MAX works to be a part of the solution in the fight to flatten the curve, all the while servicing clients who are in great need of their assistance. If you would like more information regarding the real estate market, please connect with us by emailing us at RealEstate@CRESI.ca.