Higher interest rates and consumer uncertainty are continuing to deter home buyers in Chatham-Kent.
According to the Chatham-Kent Association of Realtors, only 57 listings sold in December 2023, a sharp 25 per cent decline compared to the year prior. Home sales were also 31 per cent below the five-year average and 24.4 per cent below the 10-year average for the month of December.
“While the spring and summer saw somewhat of a resurgence of activity, demand was generally lower throughout 2023 than it had been historically owing mainly to higher interest rates and consumer uncertainty [surrounding] further rate movements,” said Carrie Patrick, the incoming president of realtor association, in a news release.
Despite the slowed sales, the average price of homes sold last month was $419,717, an increase of 9.1 per cent compared to December 2022.
The number of new homes listed for sale was down by 15 per cent in December to 91 listings. As well, there were 283 homes on the market at the end of December, a slight decrease of four listings compared to the same time in 2022.
“Looking ahead to 2024, our market is well-positioned for buyers to return once they gain some confidence back from rates being held for longer or even a suggestion from the Bank of Canada that rates may be moving lower at some point. We are well-supplied and new listings remain consistent in our region for any increases in demand,” said Patrick.