According to the London St. Thomas Association of Realtors, a series of interest rate cuts helped fuel an increase in home sales last month.
“Little bit of pent-up demand. People were waiting to see the sign that the rates were going to stay stable and probably continue to go down a little bit,” said association CEO Bill Madder.
According to LSTAR the average sale price of a home in November was $640,198 - reflecting an increase of 5.9 per cent over November, 2023.
Six-hundred-forty-one homes changed hands, for an increase of 35.5 per cent year over year, and new listings were up 10.8 per cent year-to-date.
Madder said the market is starting to see the effect of cuts to the prime lending rate. “It’s definitely helping. I think there’s probably more response to that to come yet,” he speculated.
Madder said sellers still have an advantage in the current market, but the interest rate cut helps bring more balance.
“If we compare to 2020-2021, that was clearly a benefit to the sellers. Now I think there’s probably a little more balance in our market.”
The Bank of Canada is expected to cut the interest rate once more this year.
