LONDON, Ont. — Home sales in the London and St. Thomas Association of Realtors (LSTAR) region are down about 17 per cent so far this year compared to the same period in 2024, according to the association’s May housing report.
Sales for the month of May alone were down 15 per cent compared to a year ago. However, the association says buyer confidence is improving due to steady interest rates and government support.
“There is a lot of purchasing power moving forward from this month,” said Dale Marsh with the London and St. Thomas Association of Realtors.
“For people looking to buy, the Bank of Canada actually just released their announcement this morning on the overnight rate, which held steady at 2.75 per cent. So that means bank interest rates—five-year fixed—are sitting between the high three per cent, say 3.9, up to about 4.5 per cent depending on your scenario.”
Marsh said that’s a notable improvement from a few years ago when mortgage rates were over seven per cent.
“It gives buyers more confidence in the market,” he said.
Government incentives are also playing a role. Programs for first-time buyers, including support for new builds of up to $50,000, are contributing to demand.
On the selling side, Marsh said only about four in 10 new listings are currently selling.
“This means you really have to be bang on with your pricing and make your house really stand out from the competition in your neighbourhood,” he said.
Despite the decline in sales, new listings in the LSTAR region are up 26.5 per cent compared to May 2024. Average home prices have also seen a slight increase—up 1.4 per cent year-over-year.
Marsh pointed to economic concerns as a factor affecting buyer behaviour.
“I think, especially if you’re in the automotive or agricultural sectors right now, some people are nervous about their jobs and what the tariffs mean,” he said. “I think the further we go into it, there hopefully will be more information and they will settle down.”
He added that the Bank of Canada’s rate announcement could impact June’s housing numbers.
“We’ll have to wait and see,” he said.
