Home sales rose in December, but prices fell

Ten detached homes sold in Trent Hills last month, average price $654,980

A home for sale on Burnbrae Rd.

The resale housing market continued to slow in Trent Hills last month, even though sales increased from eight in November to 10, real estate reports show.

The December sales, all detached homes, had an average price of $654,980 and a median of $627,450. In November, seven detached homes and one townhouse sold with an average of $696,975 and a median of $657,450, according to data from the Central Lakes Association of Realtors.

The association was created last year by the merger real estate groups from Northumberland, Durham, Hastings, Prince Edward County, Peterborough and Kawartha, and Kawartha Lakes.

During 2023 in Trent Hills, sales included 188 detached homes, median price $567,000; three condo townhouses, median price $620,000; two townhouses, median $584,950; and two condo apartments, median price $337,500. On average, the places sold for 98 per cent of their listed price in 33 days.

One sign of the slowing market is that in December the homes sold for 96 per cent of their listed price and were on the market for 64 days. At the end of the month there were 41 active listings, 34 detached and seven townhouses.

In comparison, last June there were 23 sales, median price $595,000, 102 per cent of listed price, on the market just 27 days.

For all of Northumberland in 2023 there were 1,239 house sales with a median price of $668,000. But in December that median was just $610,000, with 51 sales and the average time on the market was 59 days, compared to 30 days for the full year.

Better days ahead

A new real estate outlook predicts a few tough months before things improve later in 2024.

“Weak housing market conditions are expected to remain a challenge for both buyers and sellers through the first half of 2024 before expected interest rate cuts and strong underlying demand from a swelling population drives activity higher,” says a report by economists Ivy Ruan and Bryan Yu from Central 1 Credit Union.

“Higher indebtedness of Ontario households means greater sensitivity to the challenges of inflation, interest rate pass through and softening labour market which will keep many buyers on the sidelines. For sellers, this environment could translate into more panic selling by investors which would curb home prices.

“That said, latent demand is still growing in Ontario due to robust population growth suggesting softening conditions are temporary rather than long-term pattern.

“Population growth is forecast to remain strong, even as it slows from the historic pace of the last year,” the report says.

Construction of new homes is likely to be slow in 2024 due to the same factors, the economists say. Trent Hills council is awaiting a staff report on how many home are currently under construction and which builders are delaying action on approved lots.