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London’s housing market began the second half of the year the same way it ended the first: on a rather sluggish note.
Figures released Tuesday by the London St. Thomas Association of Realtors (LSTAR) showed 604 homes changed hands in July, which is 36 fewer than the same month last year.
The drop in year-over-year sales for the region, which also includes Strathroy, St. Thomas, and portions of Elgin and Middlesex counties, comes even as the average resale price of a home dropped by more than $16,000 last month.
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July’s average resale price was $654,593, down from June’s $671,309, LSTAR reported.
Last month’s figures underscore the massive toll higher interest rates have had on the local housing market, which only a few years ago was among the most overheated in the country.
From one that heavily favoured sellers, where properties were regularly selling way above asking price, London’s market has moved into more balanced territory even if sales figures continue to be on the relatively low end.
This year, 4,443 homes have been sold locally in the first seven months of 2024. That compares to 4,416 during the same period last year, which ended up being the year with the fewest home sales in the local market since 2000.
In July, there were also 1,531 active listings in the region, almost 200 more than a year ago.
The Bank of Canada cut its key interest rate for the second time this year in June, now sitting at 4.5 per cent, but analysts believe more cuts will be needed to reenergize the Canadian housing market.
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