The local housing market continued its steady streak in May, with 774 homes exchanging hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). Housing supply showed signs of market stabilization, with three months of inventory in May, unchanged from the month before. Year to date, sales are outpacing 2023, with 3,161 total sales, up 1.8% from the same period last year.
“We continue to see the trend of more new listings coming on the market, which explains the healthy level of housing stock across LSTAR’s region,” said 2024 LSTAR Chair Kathy Amess. “In May, there were 1,563 new listings, slightly up from the 1,425 new listings in April, with an overall sales-to-new listing ratio of 49.5%. According to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced market.”
Average sales price was $660,430, down 2.8% compared to May 2023. It is slightly up from the $656,037 average sales price recorded in April. Meanwhile, the Composite MLS® Home Price Index (HPI) Benchmark Price was $607,100, down 0.1% from a month ago and up 4.5% compared to six months ago.
The table below displays May's average prices and MLS® HPI Benchmark Prices in LSTAR's main regions.
Area | May 2024 MLS® | May 2024 |
|---|---|---|
| Central Elgin | $643,600 | $774,538 |
| London East | $492,500 | $518,764 |
| London North | $702,000 | $776,220 |
| London South | $607,900 | $663,008 |
| Middlesex Centre | $835,800 | $979,516 |
| St. Thomas | $559,400 | $575,071 |
| Strathroy-Caradoc | $789,000 | $658,003 |
| LSTAR | $607,100 | $660,430 |
The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.
“Although the May data indicates a stable marketplace, it’s important to note every home transaction is different based on a multitude of factors,” Amess said. “LSTAR is keeping a close eye on the Bank of Canada’s next announcement, which is scheduled to happen on June 5. Whatever it decides will impact activity over the summer season.”
The following table displays May’s benchmark prices for all housing types within LSTAR's jurisdiction and shows how they compare with those recorded in the previous month and three months ago.
MLS® Home Price Index Benchmark Prices | |||
|---|---|---|---|
| Benchmark Type | May 2024 | Change Over April 2024 | Change Over February 2024 |
| LSTAR Composite | $607,100 | ↓0.1% | ↑2.3% |
| LSTAR Single-Family | $653,800 | ↑0.2% | ↑2.3% |
| LSTAR One Storey | $596,300 | ↑0.6% | ↑2.9% |
| LSTAR Two Storey | $697,300 | 0.0% | ↑2.0% |
| LSTAR Townhouse | $501,000 | ↓1.2% | ↑3.5% |
| LSTAR Apartment | $392,700 | ↓2.7% | 0.0% |
"When compared to the prices recorded in other provincial and national centres, homes within LSTAR’s jurisdiction appear competitive for buyers, positioning the region as an attractive housing market," Amess said. The table below shows the most recent HPI benchmark prices, as provided by CREA.
According to a recent study1 by Altus Group, an average housing transaction in Ontario generated an average of $88,966 in spin-off spending per transaction from 2020 to 2022. These expenses include legal fees, appraisers, moving costs, new appliances, and home renovation expenses.
“The home sales in May potentially generated more than $68 million, reinforcing the economic engine of the business of real estate," Amess said.
Employment resulting from home sales is also significant, according to the Altus study. Resale housing activity created an estimated 106,565 jobs annually in Ontario from 2020 to 2022. Jobs include manufacturing, construction, finance and insurance.
1Economic Benefits Generated by Home Sales and Purchases Over MLS® Systems in Canada, Altus Group, 2023.
