A recent cut to interest rates is being welcomed by the Sarnia-Lambton Association of Realtors.
President Jeremy Guerette said May was a positive month.
"We had approximately 164 sales, which was pretty much the same as the month before, and good strong numbers for a spring market," said Guerette. "We did see a little uptick in listings, which we expected, which I think is a positive. [It] gives some selection for buyers."
The Bank of Canada (BOC) lowered its key interest rate to 4.75 per cent on June 5, marking the bank's first rate cut since March 2020.
Guerette expects a further sales uptick as a result.
"It will give just a little bit of relief in interest rates and affordability. So that should help buyers and sellers looking to put their home on the market [and] may have more buyers out there looking to purchase. So, I think it's going to be positive overall," he said.
There was quite a bit of inventory to choose from in May, with 563 active listings — a 50 per cent increase from the same month in 2023 — 328 of which were new last month.
Guerette said many homeowners have been waiting for the interest rates to drop.
"Just that monthly mortgage cost going up so much, makes it harder for families, and if somebody was thinking about maybe making a move to a bigger home... they might have thought, well, let's wait and see what happens with the interest rates just to make sure I can afford it," Guerette said.
He is encouraged the bank has said it is planning to continue to move inflation closer to the two per cent target.
"I'm really hopeful that by the end of the year, we'll see a few more quarter point drops," Guerette said. "That would really be helpful to everyone. I think overall the market has balanced out, which I think is a positive thing."
Guerette said homes spent about 22 days on the market before selling in May.
The median sales price was just under $500,000.
