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Both local home buyers and sellers remained in a cautious mood last month as the real estate market continued along at the lethargic pace that has been the theme of 2024.
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The average monthly sales price in November was $584,452, which was just under $5,000 more than in October. Compared to last November, the price was up about $55,000.
Sales were down 81 homes in November (370) compared to October but were up nearly 10 per cent compared to a year ago.
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“The market and the average price remain relatively flat,” said Windsor-Essex County Association of Realtors president Maggie Chen. “There wasn’t much activity.
“Sales and listings dropped 18 per cent compared to October, but that’s just the usual season slowdown. A more accurate picture of the year is the year-to-date average price is up 3.43 per cent and sales are up 2.91 per cent.
“The numbers are trending better than last year and I think we’ll see a continuation of what we’ve seen until at least next spring.”
The average price of a home so far in 2024 is $577,867.
Manor Realty general manager Rob Agnew also expects the same gradual incline in market activity while maintaining price stability into the first quarter of 2025. He noted this year has been one of gradual recovery for the market with hopes further significant rate cuts will stimulate more activity.
“The average sale price is up almost 5 per cent over last year,” Agnew said after bottoming out last December.
“Although sales and listings were traditionally down versus October (slower holiday season starts), all categories were up versus November 2023.
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“This shows the continued positive trend in the market. Prices remain stable and with a good inventory and lower interest rates; making now a great time for buyers to jump back in before the projected spring demand increases prices again.”
Chen said despite four consecutive interest rate cuts by the Bank of Canada and another one expected December 10, buyers remain stubbornly hesitant.
“The rate cuts help, but they’re not impacting affordability enough,” Chen said.
“But household debt remains in a very high state. The main reason buyers are cautious making a commitment to buy a bigger home or become a first-time buyer.
“The CMHC reports for every $1 in income the average Canadian receives they have $1.80 in debt. The debt-to-income ratio is 180 per cent.”
Chen said with Canadians struggling to cover the necessities, it’s become more of a struggle to consider buying your first home or moving up the property ladder.
“That limited purchasing power is one of the biggest reasons for a slower real estate market,” Chen said.
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Chen said that reality has particularly impacted first-time buyers. The ripple effect is without movement below, those looking to move upward on the property ladder are having to wait longer.
“There are two different types of buyers: first-time buyers and those moving upward,” Chen said.
“In a regular market, first-time buyers make up about 30 to 40 per cent of the market. Now, it’s sitting around 10 per cent because of affordability.
“Those moving up are also cautious about taking on bigger mortgage payments.”
Chen added sellers are proving as patient as buyers. Unless a seller has to move, they’re content to wait it out until spring to get their price.
“I’d say 80 per cent of sellers have that wait-and-see attitude,” Chen said. “They have a price in mind and they’re willing to wait for more interest cuts and the activity to pick up in the spring to get it.”
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