Rising supply levels weight on home prices

• By Mike Heddle
• Posted Wednesday, Jul 03, 2024 10:02 am

Rising supply levels weight on home prices

Hamilton, ON (July 2, 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 Chair Julie Sergi.

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.