The Realtors Association of Hamilton Burlington has posted our May statistics and, for the first time in a long time, the new listings inventory is up!
May set a record for new listings for the month of May, which has gone against the ongoing downward trend of new listings inventory, and if this trend continues, it will help bring us back to a balanced state. Many of us in the industry are breathing a sigh of relief, and welcoming the additional inventory.
But what about the sales?
Sales for the month were either slightly above or below last year’s numbers for the month of May in the RAHB communities. This tells us that the market demand is still strong, and that people are still buying real estate. Year over year values are also very strong, and I see these numbers leveling off
Where did all of the new listings come from?
The high rate of new listings in May were driven by the fear that the market value of homes would begin to decline due to the shift in the market. Many May Sellers bought when the market was elevated, so there was a need to list and sell for high sale prices to offset what was purchased in April. For others, it was a cash out situation driven and triggered by the shifting market. There were a lot of income properties, and over priced listings listed last month as investors and others attempted to cash out.
You will see some headlines over the next few weeks indicating that prices are dropping, and that houses are not closing. These stories, although true, are a limited and unfortunate result of some people getting caught up in a shifting market. Simply put, it’s a result of poor timing for people who purchased at the high time, who cannot get the expected value for their home, resulting in some properties not closing.
My outlook is that the market will stabilize, and some segments will see slight decreases in value as the market settles into its new place. The new listings inventory should continue to increase, and sales will continue to be strong through June. The statistics next month will show us a more realistic picture of where our market is heading.