421 homes were sold last month via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR), 8.9% less than in November 2022.
“While housing demand is exceptionally high throughout our region and the entire country, the resale data from November appears to indicate that this demand may not be reflected by the activity in the local real estate market for the remainder of this year, and possibly not until spring 2024,” explained 2023 LSTAR Chair Adam Miller. “The resurgence in activity we witnessed this past spring could serve as a preview of what to expect next year. The determining factors will include whether the Bank of Canada finds it necessary to raise interest rates again or if, by next March, it becomes a matter of when we’ll witness the Bank’s first rate cut,” he added.
The number of newly listed properties declined from 1,232 in October to 928 in November. Despite the significant monthly drop, this number still represents a record high for new listings for the month of November.
“The November data also shows that some sellers might be delaying their plans until the spring. Nonetheless, there remains a substantial number of individuals actively engaged in the market, eager to finalize deals before the end of this year. For valuable information and guidance on how to best navigate the current real estate environment, we encourage you to reach out to a local REALTOR®,” Miller said.
The real estate landscape in LSTAR’s jurisdiction witnessed a few other shifts in key indicators during November.
Housing supply saw a slight month-over-month growth from 4.3 months in October to 4.7 months in November.
The average home price in November for the entire jurisdiction of LSTAR was $605,661, exhibiting a modest decrease from $629,605 in October. Concurrently, the Composite MLS® Home Price Index (HPI) Benchmark Price settled at $577,400, a slight dip from the October figure of $592,100.
“It is essential to distinguish between these two metrics: the HPI benchmark price represents the value of a “typical home” as perceived by buyers in a specific area, considering various housing attributes. In contrast, the average sales price is derived by summing all home sale prices and dividing the total by the number of homes sold. That is why the HPI benchmark price serves as a more reliable tool for tracking trends over time: because it offers a stable reference point. This is particularly significant as average sales prices may fluctuate due to changes in the mix of sales activity from one month to the next,” Miller stated.
The following table indicates the average and MLS® HPI Benchmark Prices recorded last month in LSTAR’s main regions.