HIGHER LENDING RATES WEIGH ON SALES IN SEPTEMBER
SUPPLY LEVELS RETURNING TO PRE-PANDEMIC LEVELS
Hamilton, ON (October 5, 2022) – Sales eased across all property types and regions in September, contributing to the lowest September sales since 2010.
“Significant gains in lending rates impacting affordability and concern regarding a housing correction has dampened consumer confidence. This is contributing to the decline in sales seen throughout our market,” says Lou Piriano, President of the REALTORS® Association of Hamilton-Burlington (RAHB).
The pullback in sales was also met with a gain in new listings supporting supply growth. While supply levels in September are significantly higher than the record lows seen last year, they have returned to levels similar to what was recorded in 2019 and remain well below historical highs.
“Adjustments in both supply and demand have shifted the market out of the extreme seller’s market conditions that persisted throughout most of 2020 and 2021 and into the first quarter of this year. With just over three months of supply, our market has not entirely shifted to favour the buyer, but it has cooled some of the consumer behaviour that contributed to last year’s price gain that pushed above 33 per cent.”
Shifting conditions have been weighing on home prices as the benchmark price for a typical home eased for the seventh consecutive month. Yet, despite the adjustments, prices still remain well above levels reported prior to the pandemic.