Interest rate cut fuels increase in home sales: London-St. Thomas Association of Realtors

According to the London St. Thomas Association of Realtors, a series of interest rate cuts helped fuel an increase in home sales last month.

“Little bit of pent-up demand. People were waiting to see the sign that the rates were going to stay stable and probably continue to go down a little bit,” said association CEO Bill Madder.

According to LSTAR the average sale price of a home in November was $640,198 - reflecting an increase of 5.9 per cent over November, 2023.

Six-hundred-forty-one homes changed hands, for an increase of 35.5 per cent year over year, and new listings were up 10.8 per cent year-to-date.

Madder said the market is starting to see the effect of cuts to the prime lending rate. “It’s definitely helping. I think there’s probably more response to that to come yet,” he speculated.

Bill Madder, CEO London St. Thomas Real Estate Association (Bryan Bicknell/CTV News London)

Madder said sellers still have an advantage in the current market, but the interest rate cut helps bring more balance.

“If we compare to 2020-2021, that was clearly a benefit to the sellers. Now I think there’s probably a little more balance in our market.”

The Bank of Canada is expected to cut the interest rate once more this year.