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A stronger second half of the year, spurred by dropping interest rates, helped boost London’s housing market, which ended 2024 with more than 8,000 homes sold for the first time in three years, new figures show.
A total of 392 homes exchanged hands in December, the London and St. Thomas Association of Realtors reported Friday, bringing 2024’s home sales total to 8,088.
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That represents an increase in sales activity of about 20 per cent over 2023, when only 6,717 homes were sold – the worst year for the London market in the past decade, according to LSTAR figures. But it’s a far cry from the nearly 11,000 homes sold in 2021, the region’s best year on record.
Though the final tally points to a rebounding market, most of that recovery took place in the second half of the year after the Bank of Canada began lowering interest rates, helping bring additional buyers back into the market
After reaching a high of five per cent in June 2023, Canada’s central bank now has its key lending rate, which impacts interest charged on mortgages, credit cards and lines of credit, at 3.25 per cent.
“We are pleased to report positive momentum in the real estate market as we close out 2024,” Kathy Amess, LSTAR’s chair, said in a statement Friday.
“The increase in new listings and active listings indicates a healthy and dynamic market. . . . Although the year began slowly, the reduction in interest rates has significantly boosted sales activity, resulting in encouraging market trends.”
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While affordability remains an issue for many would-be buyers, home prices didn’t spike dramatically over the past 12 months despite the increase in home sales. In December, the average resale price of a home was $636,667, a year-over-year increase of only 2.3 per cent.
Meanwhile, the number of homes for sale continues to grow, with LSTAR reporting 2,198 active listings last month, resulting in five months of inventory.
A recent forecast by realty giant RE/MAX is projecting home sales to go up by about 10 per cent this year, with prices reaching an average of about $671,000. That’s in line with what most Canadian markets are projected to see in 2025, according to the report.
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