LSTAR’s News Release for August 2022
August Signals a Soft Landing of the Local Real Estate Market
The number of homes sold in the jurisdiction of the London and St. Thomas Association of REALTORS® (LSTAR) fell by 34.8% in August from the same month last year, but saw an increase over the previous month, which indicates a soft landing of the local real estate market. More specifically, 607 residential transactions were recorded last month by LSTAR’s MLS® System – 324 less than a year ago, but up by 93 units from July.
“The softness seen over the last few months in the local real estate market was, undoubtedly, caused by the continuous rise in the mortgage interest rates, which has translated into higher borrowing costs,” said 2022 LSTAR President Randy Pawlowski. “However, the sales-to-new listings ratio, which reflects the share of new listings out of the total number of home sales, increased from 41.8% in July to 56.7% in August, moving our market into a more balanced territory,” he added. “This is encouraging, as it could signal a bit more support for the home selling prices in the coming months.”
In August, LSTAR’s composite MLS® Home Price Index Benchmark Price was $599,500, down 4% from July. However, this value is still 0.5% higher than the figure recorded for August 2021. Similarly, LSTAR’s overall average home price dropped slightly from $667,323 in July to $648,036 in August. Compared to the same period last year, this figure is still 5.2% higher. This represents a trend the majority of local markets are experiencing across the country, according to the Canadian Real Estate Association (CREA).
“When looking to buy or sell a home, it’s essential to remember that each transaction is unique and does not always reflect the trends observed in the overall activity of the local marketplace,” Pawlowski said. “Especially in changing markets, the expertise and real-time data provided by your local REALTOR® can be invaluable resources.”
The following table shows how August’s average home sales prices in LSTAR’s main regions compared to the benchmark prices for the same areas.
|Area||August 2022 MLS® HPI Benchmark Price||August 2022 Average Price|
The following table shows the August benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from the previous year.
|MLS® Home Price Index Benchmark Prices|
|Benchmark Type||August 2022||Change over August 2021|
|LSTAR Composite||$599,500||↑ 0.5%|
|LSTAR Single-Family||$637,600||↑ 0.0%|
|LSTAR One Storey||$576,100||↑ 1.9%|
|LSTAR Two Storey||$679,600||↓ 0.9%|
|LSTAR Townhouse||$511,700||↑ 1.4%|
|LSTAR Apartment||$421,600||↑ 5.4%|