INVENTORY LEVELS ARE UP OVER LAST YEAR IN THE LUXURY SEGMENT BUT REMAIN IN BALANCED MARKET TERRITORY
February sales showed increased strength at higher price points, with affluent buyers seeking newer, high-end product or older homes that have been completely gutted
Heated home-buying activity is spilling into luxury segments in major Canadian housing markets as supply constraints spark new rounds of competition. Much of the activity in the market can be attributed to pent-up demand, which has been building since mid-2022. Bolstered by lower mortgage rates and attractive housing values, buyers from all walks of life are taking advantage of this moment to secure home ownership. RE/MAX Canada interviews RE/MAX brokers and agents in 15 markets from coast to coast. These are the notable luxury trends taking place in the Hamilton-Burlington real estate market.
While sales activity at the $2 million price point was down considerably from last year’s record levels in Hamilton-Burlington, demand for luxury properties during the first quarter of 2023 show improvement over the previous quarter. Forty-three sales were recorded in the first three months of 2023, down from 171 during the same period one year ago but are well ahead of Q4 sales. The luxury segment now represents less than one per cent of overall sales in the Hamilton-Burlington market. Home-buying activity in the top end bottomed out in early in the year, with February sales showing increased strength at higher price points, with affluent buyers typically seeking newer, high-end product or older homes that have been completely gutted. Demand is greatest in southeast Burlington as luxury buyers move closer to the coveted Oakville area and proximity to the Toronto core. Popular high-end areas also include Ancaster, Dundas, and southwest Hamilton including Kirkendall. Inventory levels are up over last year in the luxury segment but remain in balanced market territory. The Bank of Canada decision to pause interest rate hikes has provided some stability to the marketplace, with both buyers and sellers returning to the market. To that point, there has been a notable uptick in showings of properties over $2 million in Hamilton in recent weeks. The uber-luxe segment of the market, priced between $4 million and $5 million has performed relatively well as it is somewhat insulated from the overall market stressors. Prices have held relatively stable at the top end, down approximately four per cent from year ago levels.