November 3, 2022

October 2022 Market updates from London Board

LSTAR’s News Release for OCTOBER 2022

Rising Borrowing Costs Further Soften Local Home Sales

In October 2022, the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR) saw 975 new listings and 504 home sales. While October’s new listings were on par with the average value recorded for the month of October throughout the last decade, the monthly home sales were at their lowest point in the last ten years.

“This year’s successive increases in interest rates put a big dent in the local home sales activity and made the year-over-year price values plunge. However, it’s not all bad news: LSTAR’s sales-to-new listings ratio increased from 42.4% in September to 51.7% in October, which indicates a more balanced market. Moreover, the overall average home price in the London-St. Thomas region was a bit higher in October than during the previous month, increasing from $635,256 in September to $640,570 last month,” said 2022 LSTAR President Randy Pawlowski.

Compared to a year ago, both the average home price and the composite MLS® Home Price Index (HPI) Benchmark Price edged slightly down but remained higher than the figures seen in 2020 and before. LSTAR’s overall average home price was $640,570 in October, 4.1% less than a year ago, but 21.7% higher than in October 2020. The composite MLS® HPI Benchmark Price sat last month at $584,200, 2.1% lower than last year, but 26.1% higher than in October 2020.

The following table shows how October’s average home prices in LSTAR’s main regions compared to the benchmark prices for the same areas.

Area October 2022 MLS® HPI Benchmark Price October 2022 Average Price
Central Elgin $589,900 $774,480
London East $475,500 $491,525
London North $701,300 $814,524
London South $577,300 $593,593
Middlesex Centre $828,100 $1,364,559
St. Thomas $502,000 $509,198
Strathroy-Caradoc $700,000 $609,494
LSTAR $584,200 $640,570

The single-family home remained at the top of the local home buyers’ preferences, with 363 homes sold in October, followed by condos, with 73 townhouses exchanging hands.

“Despite having the lowest number of units sold (37), apartments recorded actual gains in both their average and HPI benchmark prices, unlike single-family homes and condos, which saw year-over-year decreases. More specifically, in October, the average price of an apartment in the London-St. Thomas region was $416,516, 8% higher than in October 2021, while its HPI benchmark price was $398,600, up 2% over the same time a year ago,” Pawlowski observed.

The following table shows the October benchmark prices for all housing types in LSTAR’s jurisdiction and how they compare with the values from the previous year.

MLS® Home Price Index Benchmark Prices
LSTAR Composite $584,200 ↓5.6%
LSTAR Single-Family $624,900 ↓6.2%
LSTAR One Storey $559,400 ↓6.5%
LSTAR Two Storey $669,800 ↓5.9%
LSTAR Townhouse $489,400 ↓1.4%
LSTAR Apartment $390,800 ↑2.0%

“When compared to other values recorded provincially and nationally, homes in our area continue to remain relatively affordable,” Pawlowski said. The following chart shows HPI benchmark prices for October, courtesy of CREA.

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