Home sales in Chatham-Kent are starting to show some signs of warming up again after higher interest rates cooled down the market.
The Chatham-Kent Association of Realtors (CKAR) said 131 homes changed hands in the municipality in July, an increase of almost 30 percent compared to the same month last year. The July figure is also the highest monthly total to date for 2024 -- up from the 129 units that sold in June and 117 units that sold in May and April.
The average price of the homes that were sold locally also increased, potentially showing signs that buyers are starting to increase how much they are willing to pay for homes following two consecutive cuts to the Bank of Canada's key lending rate, which dropped the BOC's Overnight Lending Rate from 5 percent in April to 4.5 percent in July.
The average price of the homes that sold in CK in July hit $452,560 -- an increase of 8.5 percent compared to July 2023.
"The slow and steady recovery from peak interest rates continues in 2024, with July adding to the momentum that's been building since the start of the year," said CKAR President Carrie Patrick. "The recent pickup in demand has begun to ease supply off its peak and we're hoping to see things continue moving in this direction as more interest rate cuts are anticipated throughout the remainder of the year."
Despite the pickup in sales, the number of homes on the market in Chatham-Kent is still very high with 481 units up for sale at the end of July. CKAR says the active listings haven't been this high at this time of the year in more than five years.
The number of active listings was also boosted by a jump in new listings with 272 new homes hitting the market in July, up 14.3 percent compared to the same month last year.
CK home sales by the numbers over the past three months:
In July, 131 units were sold with an average price of $452,560
In June, 129 units were sold with an average price of $425,245
In May, 117 units were sold with an average price of $427,636