Market easing continues into January

The Hamilton-Burlington area real estate market showed a total of 476 unit sales in January, indicating a 42 per cent decrease over the same period last year, according to the Multiple Listing Services® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). New units listed are down 8.5 per cent when compared to January 2008.

The total unit sales, when compared to December, were 3.7 per cent higher in January.”As predicted in our annual market forecast, 2009 started on a slow note. While the units sold and average price in January were up over December, there is no question that we are experiencing a market shift,” said Bruce King, RAHB President. “However, last month 1,435 residential properties were listed on our MLS® system, a sign that there is movement in the marketplace.”

Residential properties sold during January totalled 447 which included 371 freehold properties and 76 condominiums. Commercial sales for January, including industrial, farm, vacant land and business, totalled 29 units.

The average price of freehold residential properties sold in the month of January was $274,474, a decrease of 7.2 per cent over the same month last year, but an increase of four per cent over last month.

In the condominium market the average price of condominiums in January was $216,099, an increase of 2.3 per cent over January 2008, and an increase of 13 per cent over last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

January’s total average residential sales price decreased 5.6 per cent over the same month in 2008.

The total number of units listed for sale during January was 1,592, which is 8.6 per cent fewer than were listed in the same period in 2008.

“According to the Conference Board of Canada, the number of households saying they expect layoffs over the next six months surged in the fourth quarter of 2008, posting its largest quarter-over-quarter increase on record,” added King. “This uncertainty will likely continue for the first quarter of 2009, and many consumers will put off any large purchases, including a new home, until they are more certain about their financial security.”

Unit sales reflect “all property types” including residential, condominiums, commercial property, farmland and sale of businesses.