Hamilton Home Prices Drop as Listings Surge – Should You Buy or Sell Now?
Hamilton’s real estate market just saw its biggest inventory jump in over a decade. What does this mean for home prices? And if you’re thinking of buying or selling, should you act now or wait? Let’s break down exactly what’s happening and where we’re headed next.
What’s Happening in the Market?
January kicked off with some big shifts compared to December. Sales rose slightly to 369 transactions, but that’s still 17% below the 10-year average for January. Meanwhile, new listings jumped by 35%, pushing total inventory to 1,497 homes—the highest we’ve seen in January since 2013.
More inventory generally means more choices for buyers, and it also means sellers will need to be more competitive. With this supply increase, we’ve seen the sales-to-new-listings ratio dip to 40%, showing that demand isn’t quite keeping pace with the surge in available properties.
Translation? More homes on the market, longer selling times, and more leverage for buyers.
Are Home Prices Dropping?
Short answer: Yes, but not dramatically.
The average price slipped from $772,705 in December to $757,071 in January, marking a 2% drop in just a month. The benchmark price is sitting at $754,200, a small increase over December but still lower than most of 2024.
Detached homes have seen slight dips, while the condo market has taken the biggest hit, with a 5.6% drop in value year-over-year. The excess supply of condos is making it a more favorable sector for buyers right now.
If you’re wondering whether this trend will continue, the next few months will be crucial. Typically, spring brings more activity, so we’ll see if demand starts to catch up with supply.
But real estate isn’t just about the big picture—it’s about your neighborhood. Here’s how different parts of Hamilton are performing right now.
How Are Different Areas Performing?
While Hamilton’s overall market is shifting, certain neighborhoods are standing out:
- Dundas, Stoney Creek, and Glanbrook have seen stronger sales activity than long-term trends, suggesting demand remains solid in these areas.
- Hamilton Centre, Hamilton West, and Flamborough are experiencing higher months of supply (5+ months), meaning buyers have more room to negotiate in these markets.
- Hamilton Mountain continues to see solid demand, with an increase in listings by 53.5% while maintaining one of the lowest months of supply at 3.41 months.
Buyers vs. Sellers: Who Has the Power?
For six months in a row, we’ve seen four months of supply on the market—a key indicator that Hamilton is shifting into a buyer’s market. The sales-to-new-listings ratio dropped to 40%, meaning homes are taking longer to sell and buyers have more options.
So, what does that mean for you?
Advice for Buyers
- More options, less pressure. With inventory climbing, you’re in a great position to negotiate better deals.
- Watch interest rates. If they hold steady, now could be a smart time to buy before prices rebound.
- Be selective, but don’t wait too long. As inventory builds, buyers have more leverage—for now. But once spring kicks in and demand rebounds, the best deals could disappear fast. If the right home comes up, waiting could cost you.
- Look at long-term value. Instead of timing the market perfectly, focus on buying a home that fits your needs and will appreciate in the years ahead.
🏡 Quick side note, are you a first-time buyer and feeling overwhelmed by the process? Then you’ll want to download my First time Buyer Survival guide, where I walk you through step by step exactly what you need to do to get ahead in this market! Send me an email at contact@stevelopresti.ca saying “buyer guide” and I’ll send it to you directly!
Advice for Sellers
- Price strategically. The days of overpricing and still getting multiple offers are fading fast.
- Presentation matters. Homes that show well and are priced right still move quickly.
- Work with a real estate agent who knows how to get the job done. In a shifting market, experience and strategy matter more than ever—having the right agent can mean the difference between sitting on the market or making a successful sale.
💰Don’t worry, the buyers don’t get all the support. If you want to know about a better way to sell your house faster, and for more money, send me an email at contact@stevelopresti.ca saying “sell for more”, and I’ll show you how. (This doesn’t work if you hate money)
Where Are We Headed?
With rising inventory, a steady supply, and slight price dips, Hamilton’s market is settling into a more balanced state. If you’re thinking of buying or selling in 2025, strategy is everything. Work with someone who understands the shifting landscape to make sure you’re making the right move.
Looking ahead, the spring market will be a key indicator of where prices are headed. If demand picks up, we could see more price stability. If inventory keeps growing without a corresponding rise in sales, prices may soften further.
Stay tuned for next month’s update as we track these trends and see where the market is headed next!Spring will be the real test for Hamilton’s market, and smart buyers and sellers are already making their moves. If you want to be ahead of the curve, let’s chat now before the market shifts again. Message me today, and I’ll help you build a strategy that works for your goals.
Feel free to call, text or send me an email:
(905) 730-4052
Contact@stevelopresti.ca
