The number of homes sold in Chatham-Kent took a hit last month compared to sales in December 2022.
On Monday, the Chatham-Kent Association of Realtors (CKAR) reported home sales in December dropped by 25 per cent due to higher interest rates and consumer uncertainty. CKAR noted 57 homes were sold last month.
The association also said home sales were 31 per cent below the five-year average and 24.4 per cent below the 10-year average for the month of December.
According to CKAR, annual home sales totaled 1,146 units during all of 2023, a substantial decrease of 14.9 per cent from 2022.
“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 incoming CKAR President Carrie Patrick. “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.”
The average price of homes sold in December 2023 was $419,717, a moderate gain of 9.1 per cent from the same period a year ago. However, the more comprehensive annual average price was $428,588, decreasing by 6.8 per cent from all of 2022, according to CKAR.
Patrick said the total dollar value of homes sold across the municipality last month equaled $23.9 million, a sharp decrease of 18.2 per cent from the same month in 2022.
The number of new listings also decreased sharply by 15 per cent last month compared to December 2022 with 91 new homes up for sale. However, new listings were 5.1 per cent above the five-year average and 12.5 per cent above the 10-year average for the month of December, said CKAR.
The new president said there were a total of 283 homes on the market at the end of December, a minor decrease of 1.4 per cent (four listings) from the end of December 2022. However, active listings were 57.4 per cent above the five-year average and 19 per cent above the 10-year average for the month of December.
CKAR noted the housing inventory at the end of December 2023 is much higher than it has been for this time of year.