Increased interest rates appear to be hindering buyers and sellers alike in Chatham-Kent, with fewer homes changing hands in November compared the previous year.
According to the Chatham-Kent Association of Realtors, a total of 72 homes sold last month, a substantial decrease of 21.7 per cent compared to November 2022. Home sales were also 34.4 per cent below the five-year average and 29.8 per cent below the 10-year average for the month of November.
“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,” said association president Matt Bechard in a news release. “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.”
There were 167 new residential listings in November 2023, a decrease of two listings compared to the same time last year. However, new listings were 10.9 per cent above the five-year average and 24 per cent above the 10-year average for the month of November.
The average price of a home sold in Chatham-Kent last month was $398,433, an increase of 3.1 per cent compared to November 2022. However, the year-to-date average price was $429,052, but a decline of 7.6 per cent from the first 11 months of 2022.
“With buyers currently holding the upper hand in negotiations we may not see any reversal in this trend until next year, but in the meantime, there are plenty of properties available at prices that are generally lower than they have been in almost three years,” said Bechard.
There were 385 active residential listings on the market at the end of last month, a 6.1 per cent gain from the year prior.