Sarnia-area housing market saw slow, steady growth in April: group

Sarnia-area home sales experienced slow, steady growth in April, says the president of the Sarnia-Lambton Association of Realtors.

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There were 163 sales in April, up from 132 in March, association figures show.

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“It’s looking like a trend now, which I was kind of hoping for,” said president Jeremy Guerette.

The average Sarnia-area home price of $548,705 was up just over four per cent from March.

There were 311 new home listings locally in April, which the association said is about three months of inventory. “Listings are up 62 per cent from last year, so significantly up,” Guerette said.

Homes were on the market in April for a median 20 days before selling.

The rise in listings “was positive, and it was matched with a rise in sales,” Guerette said.

The local real estate market had a sale-to-new listing ratio of just over 52 per cent, which puts it “right in the middle of a balanced market, which is good for us,” he said.

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A “slightly rising market is pretty good place to be, all things considered,” Guerette said.

That’s particularly true “after going through such a steep up and then a pretty good shot down,” in recent years, he said.

Sarnia experienced an extended seller’s market with rising prices and limited supply of homes through the early years of the pandemic until rising inflation led the Bank of Canada to raise its key interest rate.

The Sarnia-area real estate market cooled and slipped into a buyer’s market in January for the first time in a decade as property listings outpaced the number of buyers.

But the local market began returning to balance in February, which is “a better environment for everyone,” Guerette said.

Homes in April sold for about 98 per cent of their listing price, on average.

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A home that is “priced well,” can sell within about three weeks to a month in the current market, he said.

Interest rates in Canada have been holding steady recently.

“I do think the Bank of Canada would like to lower the rates, but I think they would only do so once they feel like inflation’s under control,” Guerette said.

“I agree with that,” he said. “If inflation gets away from us, it’s only going to hurt real estate sales.”

When prices across the economy rise, there’s less money in household budgets for mortgage payments, Guerette said.

“I think the Bank and Canada is going to be cautious,” he said.

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