LSTAR home sales set a new record in July, with 1,275 homes exchanging hands throughout the month in the Association's jurisdiction.
"This was not only the best July for LSTAR, but also for London, which saw 856 residential real estate transactions, a number that is way above the values typically recorded during this summer month," said 2020 LSTAR President Blair Campbell.
Overall, there were 1,408 new listings last month, on par with the 10-year average, but the inventory decreased to 1.1 months - its lowest value in the last decade.
"Now, the sales-to-new listings ratio for our entire area is a whopping 90.6%, a figure that clearly indicates a Sellers' Market," observed Campbell. "Even more so in London, where this ratio reached 92% last month," he added.
"These leaps in statistical values might sound unbelievable, especially now, in the middle of the COVID-19 pandemic. But they can be explained, if one takes into account the strength of local real estate market at the beginning of this year and the pent-up demand created during the lockdown months," Campbell emphasized.
The overall average home price increased to $484,884 in July, an increase of 19.6% over a year ago. This average sales price includes all housing types - from single detached homes to high-rise apartment condominiums. All five major areas across LSTAR’s region witnessed gains in their average home sales price. The following table illustrates last month’s average home prices by area and how they compare to the values recorded at the end of July 2019.
|
Area |
July 2020 Average Sale Price |
Change over July 2019 |
|---|---|---|
| Elgin County | $425,412 | ↑ 26.8% |
| London | $487,120 | ↑17.5% |
| Middlesex County | $624,169 | ↑ 30.3 % |
| St. Thomas | $394,093 | ↑ 20.1% |
| Strathroy | $442,368 | ↑ 16.8% |
| LSTAR | $484,884 | ↑ 19.6% |
"Looking at London's three main geographic areas, London South saw the highest number of home sales last month (336) and the biggest price gain compared to July 2019," Campbell noted.
The average home price in London East was $380,365, up 15.1% from the same time last year, while in London North increased also by 15.1% over the same period to $562,529. In London South - which also includes data from the west part of the City – the average home price was $499,448, up 16.1% over July 2019.
St. Thomas saw an average home price of $394,093, an increase of 20.1% from last July. "It's worth to note that, in St. Thomas, the sales-to-new listings ratio hit an unprecedented value in July - 101.2%, while the inventory saw even lower levels than in London, sitting currently at half a month," pointed out Campbell.
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 10 - down from 14 days in July 2019. As compared to a year ago, in Elgin County, the median number of days spent by a home on the market was 21 – up from 20; in St. Thomas was 9 – down from 12; in Strathroy was 10 – down from 11; and in Middlesex County it was 13.5 – almost ten days less than in July 2019.
The following chart is based on data taken from the CREA National Price Map for June 2020 (the latest CREA statistics available). It provides a snapshot of how home prices in London and St. Thomas compare to some 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.
"This means that our July home sales could translate into more than $85 million going back into the local economy within the next few years," Campbell said.
“The contribution of the real estate sector to the Canadian economy is very important. That is why LSTAR is making every effort to provide the knowledge and tools our Members need during these most unusual times to continue their activity," Campbell 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 10 largest real estate associations, representing over 1,900 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.
*Areas displaying MLS® Home Price Index benchmark prices; all other areas display average prices
[1] Economic Impacts of MLS® Systems Home Sales and Purchases in Canada and the Provinces, Altus Group Economic Consulting, 2017.
