Chatham-Kent Association of REALTORS ® MLS ® home sales lower due to higher interest rates and consumer uncertainty

The number of homes sold through the MLS ® System of the Chatham-Kent Association of REALTORS ® totaled 57 units in December 2023. This was down sharply by 25% from December 2022.
Home sales were 31% below the five-year average and 24.4% below the 10-year average for the month of December.
On an annual basis, home sales totaled 1,146 units over the course of 2023. This was a substantial decrease of 14.9% from 2022.
“While the spring and summer saw somewhat of a resurgence of activity, demand was generally lower throughout 2023 than it had been historically owing mainly to higher interest rates and consumer uncertainty surround further rate movements,” said Carrie Patrick, 2024 incoming President of the Chatham-Kent Association of REALTORS ®. “Looking ahead to 2024, our market is well-positioned for buyers to return once they gain some confidence back from rates being held for longer or even a suggestion from the Bank of Canada that rates may be moving lower at some point. We are well-supplied and new listings remain consistant in our region for any increases in demand.”
The average price of homes sold in December 2023 was $419,717, a moderate gain of 9.1% from December 2022.
The more comprehensive annual average price was $428,588, decreasing by 6.8% from all of 2022.
The dollar value of all home sales in December 2023 was $23.9 million, a sharp decrease of 18.2% from the same month in 2022.
The number of new listings was down sharply by 15% from December 2022. There were 91 new residential listings in December 2023.
New listings were 5.1% above the five-year average and 12.5% above the 10-year average for the month of December.
Active residential listings numbered 283 units on the market at the end of December, a minor decrease of 1.4% (four listings) from the end of December 2022.
Active listings were 57.4% above the five-year average and 19% above the 10-year average for the month of December. Months of inventory numbered 5 at the end of December 2023, up from the 3.8 months recorded at the end of December 2022 and above the long-run average of 3.5 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.