Market updates for December 2023

LSTAR’S NEWS RELEASE FOR DECEMBER 2023

Subdued December Sales Conclude Moderate Year

Last month 335 homes exchanged hands via the MLS® System of the London and St Thomas Association of REALTORS® (LSTAR), bringing the total number of residential properties sold in 2023 in our area to 6,717.

“2023 was the year with the lowermost number of units sold in LSTAR’s jurisdiction since we entered the new millennium,” said 2023 LSTAR Chair Adam Miller. “This record low was caused by the high borrowing costs, which are weighing down heavily on the local consumers’ buying power,” he added.

Out of the 335 properties sold in December, 248 were single-family homes, 58 were townhouses, and 27 – apartments. “In 2023, LSTAR Members sold 5,006 single-family homes, 1,078 townhouses, and 552 apartments,” Miller emphasized.

The number of newly listed properties dropped from 928 in November to 386 in December. Despite the significant monthly decline, this number is still in line with LSTAR’s ten-year average for new listings for the month of December.

“Our December data appears to indicate that some sellers are opting to delay their plans until the spring. Despite this, there are still quite a few individuals actively participating in the market. For more insights and expert guidance on how to navigate the current real estate landscape, we encourage you to connect with a local REALTOR®,” Miller said.

In December, our local real estate market experienced a few other noteworthy changes in key parameters.

Housing supply saw a minor monthly decrease, moving from 4.7 months in November to 4.4 months in December.

The average home price for the entire LSTAR jurisdiction reached $628,047 in December, showing a modest increase from the November figure of $605,661. However, the Composite MLS® Home Price Index (HPI) Benchmark Price sat at $571,200, marking a slight dip from November’s $577,400. Year-to-date, LSTAR’s overall average price settled at $647,190.

“It is crucial to make a distinction between these two metrics. The HPI benchmark price reflects the perceived value of a ‘typical home’ in a specific area, considering certain housing attributes valued by local buyers. On the other hand, the average sales price is calculated by summing all home sale prices and dividing that total by the number of homes sold. This is why the HPI benchmark price is a more reliable tool for tracking trends over time: because it provides a more stable reference point when compared with average sales prices, which may greatly vary from one month to the next due to only a few outliers from the sales activity mix,” stated Miller.

The table below presents a detailed breakdown of December’s average and MLS® HPI Benchmark Prices in LSTAR’s main regions.