Canadian Real Estate Market Statistics for December 2022
The REALTORS® Association of Hamilton-Burlington (RAHB) and the Canadian Real Estate Association (CREA), each released their statistics for December 2022. It was reported that in the Burlington real estate market area that there were a total of 98 sales of residential properties. This was a decrease of 23.3 per cent compared to the same time last year. It was also reported that there were a total of 2,522 sales in total in 2022, this was a decline of 27 per cent compared to 2021.
“Burlington did see some gains in sales throughout the pandemic, but levels never achieved the same highs as activity reported in 2015. While new listings have also been lower since 2015, 2022 did see a pickup in new listings and a return to more balanced conditions.”
According to RAHB, there were a total of 117 new listings in Burlington in December 2022. This was an increase of 7.3 per cent year-over-year. The average price of a residential property within the Burlington real estate market was $1,039,940, a decrease of 14 per cent compared to the same time last year.
Residential property sales in the entire Canadian real estate market saw a slight increase in both November and December 2022. This isn’t very common to see at the end of the year. CREA states that the real estate market slows down in response to uncertainty. It was also reported that there were some decreases in sales volume in both 2009 and 2020. These were both years where there were some periods of economic skepticism. With that being said, CREA doesn't expect to see the volume improve in 2024.
The Canadian Housing Market Sales Volume
According to the Canadian Real Estate Association (CREA), the sales volume saw a decrease of almost 40 per cent in December 2022 compared to the same time last year. There was also an increase of 1.3 per cent when it came to the sales volume in November. This remained fairly consistent after there was a significant drop in 2022, it’s common to see this sort of drop at the end of the year.
It was reported that there was a break from the more common annual trend, the market is indicating that there’s a lot to look forward to this year. Most likely this is due to the fact that a lot of buyers were pushed out of the market because of increased property prices, and now these potential buyers have the opportunity to enter the market.
There's another important factor that will help these buyers re-enter the real estate market. This factor is that the real estate market doesn’t have the same sense of urgency it once had. The real estate market is slower and more stable now so there’s more focus on being affordable. These are all factors that make it easier for potential buyers to take advantage.
Affordability Within The Canadian Housing Market
During the height of the pandemic the average residential property prices increased. This created a situation where potential buyers were simply priced out and left to wait in hopes that it would eventually come back down. Causing a lot of stress and uncertainty, this didn’t slow down for a while. There are three factors that contributed to the affordability issue.
Affordability can be measured by three factors, house prices, interest rates and income. It was reported by the National Bank’s Q3 Housing Affordability Monitor that affordability had reached levels that had not been seen since 1981 and 1989. Both of those years, the highs were then followed by a more balanced market. It's also been reported that the Bank of Canada created more vacancies in the job market in order to reduce inflation. This meant there needed to be a decrease in the interest rate, so that the market can be more affordable.
It should also be mentioned that the residential property prices had the largest decline year-over-year since 2009. Since the average price of a residential property in the entire Canadian real estate market had a 12 per cent decrease in December 2022. There are many real estate market areas across the country had an increase in the average price during the height of the pandemic and have now seen that price decrease.
Burlington’s Real Estate Market for December 2022
As we continue to focus on the housing prices and property sales, we should note that it was reported by RAHB that sales eased in the Burlington real estate market area in December 2022. It was also reported that new listings improved, while the inventory remained low.
The Burlington real estate market is broken down into different areas and each one assigned a number. The most sought after area is Millcroft, located in area 35. This area had the greatest number of residential property sales with a total of 25 in December 2022. This was a decrease of 16.7 per cent compared to the same time last year. There were 30 new listings, which was a slight decrease of 7.1 per cent. The average price of a residential property was $970,986, this was a 13.2 per cent decrease compared to December 2021.
Another area of significance is area 31, this area had the second greatest number of sales in December 2022. With a total of 20 sales and 20 new listings, sales had a 33.3 per cent decrease while new listings only had a 16.7 per cent decrease. The average price of a residential property in this area was $834,245, this was a decline of 19.8 per cent compared to the same time last year.
“The pandemic, combined with historically low interest rates, created an exponential surge in housing demand. Supply could not keep pace, resulting in price growth that far exceeded expectations over a two-year period, 2022 saw conditions start to shift back to a more balanced market. Improved supply is an important component to stabilizing both sales and home prices. If higher lending rates continue, they will weigh on home sales in 2023, however; the dip in prices coupled with better supply choice could start to support a more stable market for the foreseeable future.” — Lou Piriano, RAHB President.
Contact The VanDinther Team
If you’re looking for a more in-depth and detailed matrix of these statistics, please refer to the Burlington Real Estate Statistics for December 2022. You can also get in contact with the VanDinther Team and someone will be more than happy to discuss them with you.
Have you been thinking about listing your home and not sure where to start? The VanDinther Team is ready and excited to get you started on this journey. Lori VanDinther has 30 years of experience working with clients in the Burlington and surrounding areas. Please also give our “What’s My Home Worth” calculator a try, it’s a great place to start.
Getting in contact with the VanDinther team is simple and can be done directly by phone at 905-632-2199 or by email at firstname.lastname@example.org. The VanDinther Team is looking forward to working with you soon so they can help you make the right moves!