Local home prices tumble from last year

For the first time in the month of June in 10 years, local home prices took a dip.

Statistics from the Realtors Association of Hamilton-Burlington showed an average residential sale price of $548,300 for June 2018 — a 2.5 per cent drop from $562,259 in June the year prior.

Sale prices for homes in Hamilton, Burlington and Grimsby had been climbing every June since at least 2008.

“For us, it means that it’s basically a return to a more balanced market,” said Jack Loft, president of the relators association.

“We’re comparing a year that’s faced with some restrictions on the buying power for people with a real good year.”

The housing landscape has changed over the last year, with the federal government implementing a so-called stress test Jan. 1, requiring buyers to have the financial means to manage rising interest rates of the future, and the province introducing the Fair Housing Plan in the spring of 2017 aimed at bringing stability to the market.

For the sixth-straight month, local real estate sales have tumbled compared to the same time last year.

In June, the association reported 1,257 sales — a 14.2 per cent dip from June 2017 and a 19.2 per cent decrease from the 10-year average for the month.

All property listings were 19 per cent lower than the same month last year, but 1.1 per cent higher than the 10-year average.

Residential sales were 13.7 per cent down from June 2017; residential freehold sales were 13.3 per cent lower and condominium sales saw a 15.6 per cent drop.

More recently, Loft said he’s been seeing sales start to pick up, which he expects to continue into the fall.

“Our spring market is here now,” he said. “It’s a little late.”

Certain areas of the local market are doing better than others, Loft noted, pointing to Dunnville and Grimsby.

Areas that were particularly active over the last few years, like Hamilton East, Hamilton Centre and Burlington, continue to experience fewer sales.