Local homes sales are continuing their downward trend, but this could turn out to be good news for folks looking to purchase a home.
According to data released by the Chatham-Kent Association of Realtors, sales in November rang in at 34.4 per cent below the five-year average and 29.8 per cent below the 10-year average.
In a year over year comparison to November 2022, sales decreased 21.7 per cent this past month, with a total of 72 units changing hands.
The average cost of a home in November 2023 was just shy of $400,000, an increase of 3.1 per cent from November of last year, however the overall average selling price for year-to-date is $429,052 a decline of 7.6 per cent from the first 11 months of 2022.
Association president Matt Bechard said it looks like buyers have once again “moved to the sidelines,” perhaps holding off on any purchases until spring.
“Home sales took another step down from last year’s levels and look to be finishing the year on a downward note,” Bechard said in a media release. “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.”
Bechard said that both sellers and buyers are facing significant challenges managing the rapid increase Canadians have seen in interest rates within a short period of time.
The average household is experiencing a reduction in discretionary spending, Bechard said, as more dollars are going towards servicing mortgage debt, along with other monetary pressures caused by inflation.
In addition, Bechard said, Chatham-Kent council recently approved a 5.53 per cent tax increase for 2024 which will see an average increase of around $185 per household.