A home with sold sign. File photo courtesy of © Can Stock Photo / ElenathewiseA home with sold sign. File photo courtesy of © Can Stock Photo / Elenathewise

'Lackluster' month for home sales in London-area

Home sales in the London-area are on a downward spiral that could become the normal well into the first quarter of 2024.

The London-St. Thomas Association of Realtors (LSTAR) recorded a nearly 9 per cent drop in the number of homes sold in November compared to the same month a year ago. Last month, just 421 homes changed hands in the region, which is also a decrease from the 488 homes sold in October.

“While housing demand is exceptionally high throughout our region and the entire country, the resale data from November appears to indicate that this demand may not be reflected by the activity in the local real estate market for the remainder of this year, and possibly not until spring 2024," said 2023 LSTAR Chair Adam Miller. "The resurgence in activity we witnessed this past spring could serve as a preview of what to expect next year.

Miller added that the determining factor could be whether the Bank of Canada raises interest rates again.

Over the past 18 months, the Bank of Canada has increased the key lending rate ten times. In its latest decision delivered Wednesday, the central bank left the rate unchanged at 5 per cent.

There were a total of 928 homes listed for sale in the London-area in November, down from 1,232 in October. While it is considered a "significant" monthly drop, the figure still represents a record high for new listings for November.

"The November data also shows that some sellers might be delaying their plans until the spring," said Miller. "Nonetheless, there remains a substantial number of individuals actively engaged in the market, eager to finalize deals before the end of this year."

The average price of a home in the region decreased by roughly $25,000 to $605,661 in November. The month prior, the average price of a home was $629,605.

Read More Local Stories