How was the Real Estate Market in 2017?
MARKET TURNAROUND IN 2017 PRESS RELEASE
For immediate release January 19, 2018 (Hamilton, Ontario) The REALTORS® Association of Hamilton-Burlington reported 15,565 all-property sales through the Association’s Multiple Listing Service® (MLS®) System in 2017, 5.9 per cent fewer sales than in the record-breaking 2016.
Even while sales were down from the previous year, the total dollar volume of sales reached a new high of $8,972 billion, which resulted in a 14.4 per cent increase in all-property average sale price for the year.
“The real estate market in 2017 was notable for the abrupt change through the spring,” noted RAHB CEO George O’Neill. “The market went from a strong, prolonged seller’s market, where the average time to sell a property was 14 days, to a more balanced market where buyers had more time to view and compare properties before putting in an offer to purchase. ”
In the residential market, listings were up 16.4 per cent compared to the previous year and sales were down six percent. “Each of the first four months of year had record sales for those months,” added O’Neill. “At the time, there were few listings on the market, with less than a month of inventory.
In April, however, we saw the first glimpse of a turnaround, when we had more listings than average come onto the market. That did not translate into immediate relief for the market, as we still had record sales for the month. It was after that point we began to see higher-than-average new listings and lower-than-average sales.”
In the overall residential market, the median sale price was up 15.3 per cent over the previous year and the average price was up 14.6 per cent. The median sale price for freehold properties was 15.7 per cent higher than 2016, while the median for condominium properties was 16.9 per cent higher.
The average prices for freehold and condominium were up 14.9 per cent and 16.3 per cent respectively. “The median residential sale price peaked at $535,000 in April and the average sale price peaked in May at $618,868,” noted O’Neill. “From those highs, there were minor fluctuations up and down, but the general trend continued downward to the end of the year.
Yet even with the median and average prices settling after the highs, they were still above 2016 levels by a good margin for the year.” Average days on market dropped to 25 days from 26 in the freehold sector and to 24 days from 27 in the condo market.
O’Neill further noted that the averages cited in a year-end review of the real estate market should not be understood to be an indicator of what a particular property is worth. “Averages show the big picture for a 12-month period. A local market has many and varying influences, so what might be average in one area is quite different from what is average in another.
I always urge home buyers and sellers to consult with a REALTOR® to learn more about the values of particular neighbourhoods or properties.