RAHB Reports Sales Increase and Inventory Strain in April
The REALTORS® Association of Hamilton-Burlington (RAHB) has released their latest market report indicating a significant surge in sales in April this year. According to the report, the total number of sales amounted to 1,102 with 1,566 new listings in the same month. Notably, this marks the first time since early 2022 that the sales-to-new listings ratio has pushed above 70 percent.
The current surge in sales has put a constraint on inventory growth; the pace of growth is not keeping up with demand as supply levels continue to trend down compared to earlier in the year. Though the 1.6 months of supply available in April is greater than the peak pandemic levels, it remains significantly less than the over three months of supply reported throughout most of the latter half of 2022.
In light of this trend, Nicolas von Bredow, RAHB President, has indicated that the gains in lending rates impacted sales across the RAHB market area. Moreover, a shift in the market has come from existing homeowners who were also reluctant to sell their homes. As a result, new listings were much lower than typically expected for this time of year, keeping inventories relatively low in the market and placing upward pressure on home prices.
The persistent shortage of inventory coupled with the surge in sales is supporting an upward shift in prices in the region. In April, the unadjusted benchmark price reached $868,700, reflecting the fourth consecutive month prices have increased. Although prices have yet to reach the unprecedented highs seen during the peak in 2022, they still provide some reassurance as to where prices may stabilize in the coming months.
In conclusion, the RAHB market report indicates that recent trends in sales and inventory supply have created challenges for the region. While the prices have been on an upward trend, the market is experiencing the strain of supply and demand imbalances. However, as the market recovers from the impacts of the pandemic, it is hoped that inventory levels will start to rebound, providing more choices for buyers and stabilizing home prices in the coming months.