a historic year for real estate in 2017

A historic year for real estate in 2017

Home sales exceed 10,000 for the first time

London, ON – The London and St. Thomas Association of REALTORS^® (LSTAR) announced 2017 marked a historic year for residential real estate, with home sales surpassing 10,000 for the first time since LSTAR began tracking data in 1978. In 2017, a total of 10,091 homes were sold, up 8.0% from 2016.

“Residential sales across the region in 2017 is definitely one for the record books,” said Jim Smith, 2017 LSTAR President. “Looking back, we saw it all last year. London and St. Thomas achieved so many ‘firsts,’ from six consecutive months of record sales to robust out-of-town interest. The real estate activity very much echoed the positive momentum most of the country experienced throughout the year.”

In 2017, the average sales price across London and St. Thomas was $330,037 up 18.0% from 2016. By geographic area, London South was $340,793, up 21.7% from 2016. In London North, average home sales price was $407,801, up 18.1% compared to the previous year, while in London East, it was $258,734, an increase of 16.9%.  In St. Thomas, it was $261,481, up 15.2% over 2016.

“In 2018, it will be interesting to see what impact the new mortgage qualification tests will have on the housing market, here in our backyard and across Canada,” Smith said. “This is just one of the reasons why getting in touch with a REALTOR^® is so helpful in selling or purchasing a home. REALTORS^® are the professional source in guiding you through these changing times.”

St. Thomas saw a total of 901 homes sold in 2017, up 6.8% from 2016. In 2017, there were a total of 14,301 home listings, down 1.2% from 2016. The trend of high demand with low supply continued in 2017, with inventory (called Active Listings) down 35.6% from the previous year.

“It was a wonderful year serving as President of our real estate association,” Smith said. “As we move ahead in 2018, I firmly believe home sales will continue to be strong in our marketplace.”

The following table is based on data taken from the CREA National MLS^® Report for November 2017 (the latest CREA statistics available). It provides a snapshot of how average home prices in London and St. Thomas compare to other major Ontario and Canadian centres.

According to a research report^[1], one job is created for every three real estate transactions and approximately $53,000 in ancillary spending is generated every time a home changes hands in Ontario. “Based on the total sales for 2017, that translates into creating approximately 3,700 jobs and positioning us to potentially generate more than $593 million back into the local economy,” Smith said.  

The London and St. Thomas Association of REALTORS^® (LSTAR) exists to provide its REALTOR^® Members with the support and tools they need to succeed in their profession. LSTAR is one of Canada’s 15 largest real estate associations, representing over 1,700 REALTORS^® working in Middlesex and Elgin Counties, a trading area of 500,000 residents. LSTAR adheres to a Quality of Life philosophy, supporting growth that fosters economic vitality, provides housing opportunities, respects the environment and builds good communities and safe neighbourhoods and is a proud participant in the REALTORS Care Foundation’s Every REALTOR™ Campaign. 

*These statistics are prepared for LSTAR by the Canadian Real Estate Association (CREA) and represent a data snapshot taken on January 1, 2018, based on reported sales activity between December 1 and 31, 2017.

[1]  Economic Impacts of MLS^® System Home Sales and Purchases in Canada and the Provinces, Altus Group Consulting, 2013.