May Inventories Rise to Levels Not Seen Since Before the Pandemic

Sales Slow As New Listings Rise

June 2024 | May 2024 Stats

Hamilton, ON - June 1, 2024

The REALTORS® Association of Hamilton-Burlington (RAHB) noted 1,032 sales in May, marking a 20 per cent decrease compared to the previous year and 31 per cent below the long-term average for the month. This decline in sales was evident across all property types and was significant enough to counterbalance the gains seen earlier in the year, resulting in a three percent decrease in year-to-date sales.

A decline in sales was accompanied by an increase in new listings, resulting in a decrease in the sales-to-new-listings ratio to 46 per cent in May. Although new listings showed improvement across various price brackets, the most significant surge was observed in homes priced above $1,000,000. Consequently, the collective effect of reduced sales and heightened new listings led to a notable 56 per cent increase in inventory levels compared to May of the previous year, marking the highest May level reported since 2018.

“Inventory levels are on the rise across all price ranges, with the most significant increases observed in the higher-priced products. This surge can be attributed to the current high-interest rate environment, which is motivating more sellers to list their properties in thisbracket. However, the flip side of this trend is that escalating costs and higher interest rates are affecting consumer affordability, causing some potential buyers to pause their purchasing decisions,” says Nicolas von Bredow, President of the REALTORS® Association of Hamilton-Burlington (RAHB).

The fluctuations in both sales and inventory levels have fostered the most balanced conditions in over a decade, effectively mitigating any notable shifts in home prices on a year-to-date basis. In May, the total unadjusted residential benchmark price stood at $868,300, reflecting a one per cent increase compared to the previous month, yet nearly one per cent lower than the levels recorded in May of the previous year.

*The benchmark price is the estimated value of a “typical” home within a community.

**Months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

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Specific neighbourhoods within the overall RAHB market see results that often differ from the entire RAHB market area. Neighbourhoods vary and determining the right price and conditions when buying or selling a property can be challenging. Local RAHB REALTORS® have the experience, knowledge and tools to help buyers and sellers make those big decisions.

“It’s never too early to talk to a member of the REALTORS® Association of Hamilton-Burlington about your real estate and investment goals. Whether you are buying or selling, RAHB REALTORS® have the best tools and systems to help you navigate the market.”

**Average sale price can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value. Talk to your local REALTOR®.

 

 

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