Home prices increased 10% in May

Sales were down slightly, but rate cuts may help the market this summer

A home for sale on Grand Rd. listed for $529,900.

Home prices in Trent Hills jumped just over 10 per cent in May as the median price of the 21 homes sold was $686,900, up from $622,500 in April, according to data from the Central Lakes Association of Realtors.

Sales were down from 24 in April. In May there were 56 new listings -- 55 detached and one townhouse. At the end of the month there were 119 active listings – 107 detached, one condo townhouse and 11 row or townhouses.

The average price in May was $740,736. For the year so far, the median price of homes sold in Trent Hills is $595,000 and the average is $637,946. There have been 96 sales, 94 detached and two row or townhouses.

For all of Northumberland in May, there were 146 homes sold for an average of $747,359 and a median of $703,500. Just a reminder who spent years editing stories by numerically challenged reporters, the median means half were priced higher and half lower, while the average adds them together and often results in a number inflated by high-priced properties.

On Wednesday, the Bank of Canada cut its target overnight lending rate by 25 basis points to 4.75 per cent. This was the first rate cut since March 2020. It ended the bank’s inflation fighting efforts that saw rates rise from 0.25 per cent in 2020 to 5 per cent last July.

Economists say more rate cuts are coming and that should spur home sales.

“The Canadian economy faces further headwinds from the mortgage renewal cycle and higher payments facing many homeowners,” says Bryan Yu, Chief Economist with Central 1 Credit Union. “Real interest rates are deeply in restrictive territory which will temper activity, and in our view Canada’s inflation problem is in the rear-view mirror.”

Yu expects the bank to cut its rate three more times this year, with a pause at the September meeting to assess the impact of reductions on sectors like the housing market.

The bank will keep in step with the U.S. Federal Reserve Bank so “a delay in rate cuts in the U.S. could slow the pace of bank cuts,” Yu said.

 “As we come to the end of spring, we are still seeing an active market,” said Vicki Sweeney, president of the Central Lake Association of Realtors. “Average prices are on the rise across all regions, and there is a noticeable increase in active listings, indicating a growing interest among homeowners to sell their properties.

Last year in Trent Hills, the average price was $625,025 and there were 36 sales and 55 listings.

Northumberland County saw an increase in average price from $719,535 in May 2023 to $747,359 in May 2024. The number of active listings increased by 70 per cent from 340 to 579 from May 2023 to May 2024.

If you’re wondering why I often quote economists from Central 1 Credit Union, it provides many services to credit unions across Canada and was my employer for a decade. Its economists are focused on information of value to credit union members, which means average Canadians, not investors.

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Events on Saturday

I just wanted to highlight a couple of the many activities taking place this Saturday. The Campbellford Friends of the Library will be holding their annual book sale/fundraiser from 9 a.m. until noon at the Campbellford branch of Trent Hills Public Library. It’s a great chance to load up on summer reading material and help a good cause.

Then, from noon until 5 p.m. the Trent Hills Pride Festival will take place in the Old Mill Park with music, performances and fun activities.

Also, on Thursday, June 13 at 7 p.m. those two groups will come together as the Trent Hills Pride Festival celebrates Small Town Pride at the Campbellford library branch. Hear from community members who have enriched the 2SLGBTQ+ narrative of our rural community.