local real estate markets remain vibrant

For the London and St Thomas Association of REALTORS^® (LSTAR) last month was the August with the third highest volume of residential sales in the last decade. 917 homes exchanged hands in the Association’s jurisdiction - just four less than in August 2018. New listings increased to 1,189, but still didn’t reach the ten-year average. Overall, the inventory levels were slightly elevated over August 2018 – 1.9 months over just 1.7. During the same period, the average home price was 9.1% higher than one year ago, sitting at $413,010.

In London, the average sale price for a home in the East part of City was $334,997, up 16.7% from last August. In London North, the average sale price was $489,358, up 4.8%, as compared to the previous year, while in London South, it was $413,891 - an increase of 8.3% over August 2018.

“The high local housing demand, coupled with London’s low inventory levels create the perfect storm for the smaller urban areas surrounding the Forest City,” observed Earl Taylor, 2019 LSTAR President. “At least, that’s what the latest figures suggest: Middlesex County recorded its highest volume of August home sales ever - 72, while St. Thomas and Strathroy had both their second best August for home sales - with 68, respectively 24 residential real estate transactions,” Taylor explained. “In its turn, Elgin County saw 60 home sales - the exact same number as in August 2017, while its inventory reached the second lowest level in the last decade,” he added. 

“Despite the fact that August wasn’t a record month like July, all local real estate markets remained vibrant,” Taylor emphasized. 

According to a report by the Canadian Real Estate Association, last month, in London, the median number of days that a home was on the market was 14 - up from 13.5 days in July. 

In Elgin County, the median number of days spent by a home on the market was 26 - up from 20; in Middlesex County it was 15 - down from 24; in St. Thomas it was 13 days – up from 12; and in Strathroy was 14, as compared to 12 days last month.  

The following chart is based on data taken from the CREA National MLS^® Report for July 2019 (the latest CREA statistics available). It provides a snapshot of how seasonally adjusted average home prices** in London and St. Thomas compare to other major Ontario and Canadian centres.

According to a research report^[1], a total of $67,425 in ancillary expenditures is generated by the average housing transaction in Ontario over a period of three years from the date of purchase. “Considering all the home resales in August, that’s generating potentially more than 61 million dollars back into the local economy over the next few years,” Taylor concluded.

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 September 1st, 2019, based on processed home sales activity between August 1^st and 31^st, 2019. 

** Seasonal adjustment is widely used in CREA’s statistics as a technique for enabling timely interpretation of data. The purpose of seasonal adjustment is to remove systematic calendar-related variations associated with the time of the year (seasonal effects).

[1]  Economic Impacts of MLS^® Systems Home Sales and Purchases in Canada and the Provinces, Altus Group Economic Consulting, 2017.