The real estate market in the London and St. Thomas area showed mixed results in August. Sales activity declined, with 577 homes sold, marking a 6.0% drop from the same month last year. The average sale price also decreased by 4% to $629,500. However, active listings saw a 19% increase compared to August 2023.
LSTAR Chair Kathy Amess noted, “Despite the fluctuations in sales activity, average price and dollar volume, the increase in new and active listings indicates a more balanced market, providing more opportunities for buyers and sellers alike.
There are lots of opportunities for buyers in this market, which in turn benefits our sellers. Additionally, with the Bank of Canada lowering its key interest rate to 4.25% today, we anticipate a potential boost in market activity as borrowing costs decrease.”
The table below displays August average prices and MLS® HPI Benchmark Prices in LSTAR's main regions supplied by the Canadian Real Estate Association (CREA).
Area | August 2024 MLS® | August 2024 |
|---|---|---|
| Central Elgin | $636,500 | $665,343 |
| London East | $498,300 | $482,894 |
| London North | $737,400 | $737,949 |
| London South | $625,000 | $681,182 |
| Middlesex Centre | $873,700 | $941,375 |
| St. Thomas | $552,400 | $533,902 |
| Strathroy-Caradoc | $816,500 | $586,286 |
| LSTAR | $623,500 | $629,259 |
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.
The following table displays August 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.
Kathy Amess added, “These figures highlight the resilience and attractiveness of our local market. Despite broader economic challenges, our region continues to thrive and offers great opportunities for both buyers and sellers. This data underscores the dynamic nature of the housing market in the London St. Thomas area, with varying trends across different property types. The continued interest and investment in our market are testaments to its enduring appeal and potential for growth.”
MLS® Home Price Index Benchmark Prices | |||
|---|---|---|---|
| Benchmark Type | August 2024 | Change Over July 2024 | Change Over May 2024 |
| LSTAR Composite | $623,500 | ↑0.5% | ↑2.7% |
| LSTAR Single-Family | $669,100 | ↑0.5% | ↑2.3% |
| LSTAR One Storey | $594,400 | ↓3.3% | ↓0.3% |
| LSTAR Two Storey | $727,600 | ↑3.2% | ↑4.3% |
| LSTAR Townhouse | $509,800 | ↓0.8% | ↑1.8% |
| LSTAR Apartment | $427,400 | ↑1.5% | ↑8.8% |
The chart below provided by CREA shows the most recent HPI benchmark prices.
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 August potentially generated more than $51 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.
