With the initial 50bp interest rate hike by the Bank of Canada on June 1st combined with the announcement that rates would be increased until inflation is under control fueled a whirlwind of articles and analysts predicting a 15-30% drop in Canada’s housing market and the end of a 2 year sellers’ market came to an abrupt halt.

This downward pressure was escalated with a further 1% or 100bp increase on July 13th further amplifying the drop and putting more downward pressure on the real estate market. At this point in June they had already started increasing rates earlier this year and we had evidenced the peak in the market at the end of February 2022. The detached markets had already started pulling back from their peak by the time the June increase and announcements came about. It is a new age indeed as social media and faster access to information whipped up a fear frenzy facilitating a rapid change in the housing market; it was uncanny. I believe most folks believed that a sustained decrease in the market was ahead yet I don’t think anyone was prepared for the rapidity of the change we experienced.

Hamilton/Burlington Market Update

The Burlington/Hamilton market saw an overall decrease in the market of 5% in June and 6.6% in July. As per the chart below you can see the peak in February and then the slow decline in March thru May and then the sharp decline in June and steeper decline in July. The Townhome market was particularly hard hit June through July as it had staved off much of the earlier declines the detached market had experienced and the condo/apartment actually strengthened a bit in July vs June. This market was up only 2.1% vs 2021 at this time giving back now most of the unprecedented gains seen over the last year. The inventory of detached properties increased from 2.6 months in June to 3.2 months in July.

Key Findings for Burlington/Hamilton

Overall decrease in the market of 5% in June and 6.6% in July.

Townhome market was particularly hard hit June

Condo/apartment market strengthened in July vs June.

Oakville/Milton Market Update

According to figures released August 10 by The Oakville, Milton and District Real Estate Board (OMDREB), the number of all property sales decreased 35.3 percent for Single Family homes and 45.0 percent for Townhouse/Condo homes compared to July 2021. The Median Sales Price increased 4.4 percent to $1,385,000 for Single Family homes and 9.0 percent to $820,000 for Townhouse/Condo homes. The total number of new property listings increased 32.6 percent for Single Family homes and 10.6 percent for Townhouse/Condo homes compared to this time last year. For homes processed through the OMDREB MLS® system, the number of days on market increased 91.7 percent for Single Family homes and 100.0 percent for Townhouse/Condo homes in July 2022. Year over year, Inventory increased 190.6 percent for Single Family homes and 139.2 percent for Townhouse/Condo homes. The Oakville Single Family home market was up 6.8% from 2021 averaging $2.113M and the Milton Single Family home market was up 5.6% averaging $1.379M for July 2022.

Key Findings for Oakville/Milton

Single Family home sales decreased 35.3%; price increased 4.4%

Townhouse/Condo home sales decreased 45%; price increased 9%

Brantford Market Update

Brantford Home sales decline to lowest July reading since 1996
The number of homes sold through the MLS® System of the Brantford Regional Real Estate Association totaled 137 units in July 2022. This was a big decline of 34.1% from July 2021. Home sales were 38.2% below the five-year average and 36.6% below the 10-year average for the month of July. The average price of homes sold in July 2022 was $713,271, a modest decline of 2.7% from July 2021. The number of new listings saw a sizable gain of 29.1% from July 2021. There were 337 new residential listings in July 2022. Active residential listings numbered 445 units on the market at the end of July, more than double the levels from a year earlier, rocketing up 123.6% from the end of July 2021. Months of inventory numbered 3.2 at the end of July 2022, up from the 1 month recorded at the end of July 2021 and above the long-run average of 2.2 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Key Findings for Brantford

Number of homes sold declined 34.1% from July 2021

Home sales were 38.2% below the five-year average

Average price of homes sold in July 2022 was $713,271, a decline of 2.7%

Cambridge Market Update

Last data posting was for June 2022. The number of homes sold through the MLS® System of the Cambridge Association of REALTORS® totaled 191 units in June 2022. This was a substantial decline of 33.4% from June 2021. Home sales were 20.6% below the five-year average and 21.4% below the 10-year average for the month of June. Home sales continue to moderate in the face of rising interest rates, and we expect this trend to continue through most of the remainder of the year with more rate hikes on the horizon,” said Val Brooks, President of the Cambridge Association of REALTORS®. “New listings have done an about-face from the beginning of the year and are now coming onto the market at a rapid pace, setting a new record for the month of June. While overall inventories are sitting at historically subdued levels, they have lifted off from rock bottom and now stand back where they were at roughly the same time last year. The average price of homes sold in June 2022 was $795,299, increasing by 5.6% from June 2021. The number of new listings saw an increase of 19.6% from June 2021. There were 402 new residential listings in June 2022. This was also the largest number of new listings added in the month of June in history. New listings were 18.8% above the five-year average and 20.7% above the 10-year average for the month of June. Active residential listings numbered 293 units on the market at the end of June, a jump of 83.1% from the end of June 2021.

Key Findings for Cambridge

Number of homes sold declined 33.4% from July 2021

Home sales were 20.6% below the five-year average

Average price of homes July 2022 was $795,299, increasing of 5.6%

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