The November report from the London and St. Thomas Association of Realtors shows a noticeable slowdown in local home sales, despite earlier signs of renewed buyer interest.
LSTAR chair Dale Marsh said he expected the market to pick up in November, but sales instead fell 19 per cent compared with the same month last year. Year-to-date sales are also down 5.2 per cent.
Marsh said recent economic uncertainty has made some buyers nervous, pointing to last week’s announcement that Algoma Steel would lay off 1,000 workers.
Marsh said the cooling market is creating favourable conditions for first-time buyers. Interest rates have dropped to the 3.8 to 4.2 per cent range, and the average home price has fallen from roughly $650,000 to about $605,000 over the past several months. He added that the region is seeing a record number of listings, giving buyers more choice.
“Typically when you have high supply and low demand, prices drop,” he said. “I’m surprised it hasn’t happened sooner.”
With the holiday season approaching, Marsh expects activity to remain quiet until mid-January, when he says the market usually regains momentum.
Marsh will move into the role of past chair in 2026, with Robin Tiller set to take over as LSTAR chair next year.
