Hamilton housing market sees 'cautious start' to 2025 - What's holding buyers back?

• By Brian Shaw
• Posted Monday, Feb 10, 2025 11:14 am

Hamilton housing market sees 'cautious start' to 2025 - What's holding buyers back?

The Hamilton housing market got off to a slow start in January as home sales once again fell below long-term trends for the area.

The Cornerstone Association of Realtors reported Wednesday that just 369 houses sold in the city last month, a roughly nine per cent drop from January 2024 and 17 per cent below the 10-year average.

The association attributed the “cautious start” to a lack of improvement on high mortgage rates, despite a series of interest rate cuts from the Bank of Canada, and “heightened economic risks” that have left potential buyers in a state of concern.

As of Wednesday, the BOC had cut its overnight lending rate five times in a row, bringing the new key rate to three per cent in late January. The next rate announcement happens in March.

The Canada Mortgage and Housing Corp. has also forecasted a rebound in home sales and prices this year as homebuyers take advantage of improved borrowing conditions, but its outlook is clouded by the threat of widespread tariffs from the U.S.

Despite some “short-term challenges” in the local market, Cornerstone spokesperson Nicolas von Bredow said a rise in inventory and an increase in benchmark prices “reflect a market that remains adaptable.”

The association remains optimistic about the market, von Bredow noted, adding that while buyers and sellers “are taking a more measured approach,” there are “opportunities in every corner of the region.”

New listings in the city skyrocketed last month, with 920 homes hitting the market in January — a jump of 35 per cent compared to January 2024.

With 1,497 homes on the market, the city’s inventory levels were the highest reported for the month of ​​January since 2013, noted the association.

According to the report, that’s a little more than four months’ worth of supply — a measure of how long it would take to sell all the homes on the market in a given month.

The average home price in Hamilton was $757,071 last month, marking a more than four per cent decline from January 2024.

The average home in the city had been on the market for a little more than 49 days last month.

By the numbers

Hamilton Mountain was the most popular place to buy in January with 90 homes sold, followed by Stoney Creek with 67. Hamilton Centre saw 48 sales, while Hamilton East had 36.

The most expensive area of the city to buy last month was Flamborough, with the average property selling for roughly $...[READ MORE]