ST. THOMAS MARKET SNAPSHOT - FEBRUARY

St. Thomas Market Update February 2025

Mar 5, 2025

By Ryan Harper

February 2025 Real Estate Market Update – St. Thomas, Ontario

The St. Thomas real estate market has seen notable changes in February 2025 compared to the same time last year. Key factors such as home prices, sales activity, and inventory levels have all shifted, leading to a market that is transitioning toward a more balanced environment.

The average sale price for homes in February 2025 was $576,440, marking a 5.4% decrease from February 2024. This decline suggests a slight softening of home values, which could give buyers more negotiating power. At the same time, the number of homes sold dropped to 47, reflecting an 11.3% decrease from the previous year. This decline in sales activity may point to a shift in buyer demand, potentially influenced by concerns over affordability, interest rates, or seasonal fluctuations in the market.

Another significant development is the rise in inventory levels. The market now has 3.3 months of inventory, up from just 2.2 months in 2024. This increase in available homes suggests that buyers now have more options to choose from, leading to a more balanced market. However, the number of new listings entering the market has decreased by 9.3%, with only 78 homes listed in February 2025. This reduction in new inventory could help stabilize prices, as fewer homes are becoming available for sale.

Despite these shifts, homes are still selling relatively quickly. The median days on market in February 2025 was 25 days, slightly longer than the 23 days recorded in February 2024. This indicates that while homes are still moving, it may be taking a little longer for properties to sell in the current market.

What This Means for Buyers and Sellers

For buyers, the slight decline in home prices combined with an increase in inventory offers an opportunity to explore more options without the intense competition seen in previous years. Buyers may have more negotiating power and could find better deals, but they should remain cautious of factors like interest rates and financing conditions that could still impact their purchasing decisions.

For sellers, although home prices have softened, the slightly longer days on market suggest that pricing and presentation will be even more important to attract buyers. Homes that are competitively priced and well-marketed will stand out and are more likely to sell efficiently, despite the slower pace.

Conclusion

In summary, the St. Thomas real estate market is showing signs of balancing out. While buyers have more options and negotiating power, sellers can still attract interest with well-priced homes. Whether you’re looking to buy or sell, understanding the current market trends will allow you to make more informed decisions in February 2025 and beyond.