Chatham-Kent home sales see sharp drop in November from last year

The number of homes sold in Chatham-Kent dropped significantly in November compared to last year.

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Statistics from the MLS System of the Chatham-Kent Association of Realtors show there were 72 units sold that month. This was a decrease of 21.7 per cent from November 2022.

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Home sales were 34.4 per cent below the five-year average and 29.8 per cent below the 10-year average for the month.

On a year-to-date basis, home sales totaled 1,089 units during the first 11 months of the year, a drop of 14.3 per cent from the same period last year.

“Home sales took another step down from last year’s levels and look to be finishing the year on a downward note,” Matt Bechard, association president, said in a release Wednesday.

“With sales and new listings trending in opposite directions, it appears that buyers are once again moving to the sidelines and holding off on any purchasing decisions until perhaps the spring, while sellers are out in force doing what they can to attract any offers.”

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Bechard added with buyers “currently holding the upper hand in negotiations,” there may not be any reversal in this trend until next year.

“In the meantime, there are plenty of properties available at prices that are generally lower than they have been in almost three years.”

The increase in interest rates during a short period of time also has been a challenge.

“The average household has seen a reduction in their discretionary spending as more dollars go toward servicing mortgage debt, not to mention other inflationary pressures as the cost of goods and services have also increased,” Bechard said. “Chatham-Kent council approved a 5.53 per cent tax increase for 2024 resulting in an average increase of approximately $185 per household.”

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The average price of homes sold in November was $398,433, up 3.1 per cent from November 2022. The year-to-date average selling price was $429,052, a drop of 7.6 per cent from the first 11 months of last year.

The dollar value of all home sales in November was $28.7 million, down 19.3 per cent from the same month in 2022. The number of new listings declined 1.2 per cent.

There were 167 new residential listings in November, 10.9 per cent above the five-year average and 24 per cent above the 10-year average for the month.

Active residential listings numbered 385 units on the market at the end of November, a 6.1 per cent increase from the end of November 2022. Active listings haven’t been this high in the month in more than five years.

Active listings were 60 per cent above the five-year average and 27.7 per cent above the 10-year average for the month.

Months of inventory numbered 5.3 at the end of November, up from the 3.9 months recorded at the end of the month last year, and above the long-run average of 3.4 months for this time of year.

The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

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