LSTAR’s News Release for April 2022
April Figures Suggest a Soft Landing of the Local Real Estate Market
In April 2022, 877 homes traded hands in the London-St. Thomas area and 1,069 new property listings were posted on the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). The local housing supply bounced up to 1.2 months of inventory in April from only 0.6 months in March.
“These figures suggest a soft landing of the local real estate market: the April home sales are on par with the ten-year average and last month’s sales-to-new listings ratio of 54.5% signals that we’re trending towards a more balanced market,” said Randy Pawlowski, 2022 LSTAR President.
Within the same time frame, LSTAR’s composite Home Price Index Benchmark Price saw a 4.5% month-over-month decline – from $774,200 in March to $739,700 in April. A similar difference was also seen in LSTAR’s overall average home price, which decreased from $823,954 in March to $771,682 in April.
“There is nothing dramatic about the decline in home prices. These single-digit decreases were actually expected after two consecutive interest rate hikes by the Bank of Canada and the Ontario Government’s decision to expand and increase the non-resident speculation tax,” Pawlowski explained.
The following table shows how April’s average home sales prices in LSTAR’s five main regions compare to the benchmark prices for the same areas.
|Area||April 2022 MLS® HPI Benchmark Price||April 2022 Average Price|
“In April, the average price for a single-family home in LSTAR’s jurisdiction sat at $840,415, that of a condo – at $618,049, and the overall average price for an apartment – at $476,283,” Pawlowski said. “Speaking of apartments, it’s interesting to see that their HPI benchmark price increased in April by 3.7% over the previous month, while the benchmark prices for all the other home types saw month-over-month single-digit reductions,” he noted.
The following table shows the April benchmark prices for all housing types in LSTAR’s jurisdiction and how they measure up to the values from a year ago.
|MLS® Home Price Index Benchmark Prices|
|Benchmark Type||April 2022||Change over April 2021|
|LSTAR Composite||$739,700||↑ 25.1%|
|LSTAR Single-Family||$789,700||↑ 23.7%|
|LSTAR One Storey||$742,500||↑ 26.6%|
|LSTAR Two Storey||$838,300||↑ 21.8%|
|LSTAR Townhouse||$599,900||↑ 26.1%|
|LSTAR Apartment||$461,400||↑ 37.0%|