Higher interest rates continue to plague the real estate market in Chatham-Kent.
On Wednesday, the Chatham-Kent Association of Realtors (CKAR) reported sales remained below average last month, while new listings in November still came in strong.
CKAR said 72 homes were sold last month, which marked a decrease of 21.7 per cent from November 2022. November home sales were also 34.4 per cent below the five-year average and 29.8 per cent below the 10-year average, according to the realtors association.
CKAR President Matt Bechard said 1,089 homes have been sold across the municipality over the first 11 months of the year, a decline of 14.3 per cent from the same period in 2022.
"Home sales took another step down from last year’s levels and look to be finishing the year on a downward note," said Bechard. "With sales and new listings trending in opposite directions it appears that buyers are once again moving to the sidelines and holding off on any purchasing decisions until perhaps the spring, while sellers are out in force doing what they can to attract any offers."
Bechard noted buyers currently hold the upper hand in negotiations and the local real estate market may not see any reversal in this trend until next year.
"There are plenty of properties available at prices that are generally lower than they have been in almost three years," he said. "Sellers along with buyers face significant challenges in managing the rapid increase that we have seen in interest rates within such a short period of time. The average household has seen a reduction in their discretionary spending as more dollars go towards servicing mortgage debt, not to mention other inflationary pressures as the cost of goods and services have also increased."
CKAR also reported the average price of a home in CK in November 2023 was $398,433, an increase of 3.1 per cent from November 2022, but buying a home in CK is much cheaper than it was last year. CKAR noted the year-to-date average price has dropped to $429,052 since January 2023, a 7.6 per cent decrease from the first 11 months of 2022.
Bechard said realtors in CK sold $28.7 million in real estate last month, down by 19.3 per cent from the same month in 2022.
CKAR also noted 167 new homes went up for sale last month, a decrease of 1.2 per cent or two listings from November 2022. Bechard said there's plenty to pick from as new listings were 10.9 per cent above the five-year average and 24 per cent higher than the 10-year average for the month of November.
He also said a total of 385 homes were on the market at the end of November, a gain of 6.1 per cent from the end of November 2022.
"Active listings haven't been this high in the month of November in more than five years," Bechard said.
According to CKAR, active listings were 60 per cent higher than the five-year average and 27.7 per cent above the 10-year average for the month of November.