Rising Supply Levels Weigh On Home Prices

July 2024 | June 2024 Stats

Hamilton, ON - July 3, 2024

Sales in June continued declining compared to the previous month and the same period last year. With 835 sales recorded this month, they remain below long-term averages and are consistent with the lower figures observed in recent years. This slowdown in sales is evident across all property types and in every area within the region.

"Higher interest rates and rising cost of living have impacted the housing market. Despite a recent rate reduction by the Bank of Canada, mortgage rates remain high, and potential buyers are likely waiting for further cuts or a shift in market conditions. Rising supply levels have reduced the sense of urgency experienced during the periods of low inventory, taking the pressure off home prices,” says Cornerstone Association of REALTORS® Spokesperson Nicolas von Bredow.

New listings in June reached 2,048 units, a gain over last year and high enough relative to sales to contribute to further inventory gains. June inventory levels trended up over last month and were 54 per cent higher than last year’s levels, which is well above long-term trends for the month.Inventory levels rose across all price ranges.

Gains in inventory relative to sales caused the months of supply to rise to nearly four months.Higher supply levels relative to sales took some pressure off home prices. In June, the unadjusted benchmark price was $849,900 a year-over-year decline of over two per cent.Despite the decline, year-to-date the average benchmark price has remained relatively flat compared to last 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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