Home sales down as market balances out

The move to boost interest rates last month may already be having an impact on the housing market, with some regions reporting sales down significantly.

It’s something St. Thomas homeowner Pam Myall has mixed feelings about. She recently put her home up for sale, knowing full well that she missed out on her chance at getting top dollar.

“And this year of course was prime year because the prices of the market went up,” says Myall. “The reason we waited for the summer was unfortunately we had to wait for a build to be finished ‘cause you have to have a place to land.”

The overall average price of a home in the London St. Thomas region fell from $686,287 in June to $667,323 in July, according to the London and St. Thomas Real Estate Association (LSTAR).

“It’s still busy, prices are still tremendously up over three, four, five years ago for sure, but it has slowed,” said St. Thomas realtor and former LSTAR president Earl Taylor. He said the market is becoming more balanced.

“Our real estate market has made a change, and is it warranted? Absolutely. We went through two years of tremendous growth, so now we’re starting to settle out. The federal government, of course, has introduced a one per cent interest rate increase in order to reign back inflation,” he says.

Taylor also cautioned however that one month does not make a trend.

As for Pam Myall, she’s not about to fret because, fortunately for her, she’s under no pressure to sell quickly.

“We are going in with the philosophy that it takes what it takes. We’re not purchasing another house, so we really do have the time to wait until it does sell,” she says.