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LSTAR Reports March Sales Drop Amid Uncertainties
The London and St. Thomas Association of REALTORS® (LSTAR) reported a significant decline in sales activity for March 2025, with only 508 transactions, marking a 33.5% decrease from the previous year. New listings decreased by 11.0%, while active listings increased by 21.1%, indicating a growing inventory. The average price of homes in the region decreased slightly by 0.6% to $643,159. The sale to list price ratio remained close to previous years indicating sellers are still achieving near their asking prices.
LSTAR Chair Dale Marsh remarked, “The Canadian real estate market is facing a challenging environment due to various factors, such as U.S. tariffs and broader economic uncertainties. These uncertainties have clearly impacted consumer confidence, leading to the volatility we’re observing.” Despite interest rates being at acceptable levels, buyers are hesitant to make significant purchases, opting to wait and see how tariffs might affect their employment.
However, there are positive aspects to consider. The current market conditions may present opportunities for buyers who are prepared to act. With fewer buyers actively purchasing, there could be less competition for available properties, potentially leading to better deals. Additionally, some experts believe that once the economic uncertainties stabilize, the market could see a resurgence, making it a good time for buyers to plan and prepare for future investments.
Overall, while the market is challenging, it also offers unique opportunities for those who are strategic and patient.
The table below displays March’s average prices and MLS® HPI Benchmark Prices in LSTAR’s main regions.
HPI Benchmark Price |
Average Price |
|
|---|---|---|
| Central Elgin | $651,500 | $776,633 |
| London East | $488,200 | $509,501 |
| London North | $704,000 | $752,776 |
| London South | $615,700 | $645,498 |
| Middlesex Centre | $870,300 | $975,178 |
| St. Thomas | $561,500 | $568,008 |
| Strathroy-Caradoc | $824,300 | $632,709 |
| LSTAR | $614,300 | $643,159 |
In March 2025, the MLS® Home Price Index showed varied trends across property types. The composite benchmark price was $614,300, down 1.3% from last month but up 1.0% from a year ago. Single-family homes were priced at $666,100, down 1.1% from last month but up 2.0% from a year ago. One-storey homes increased to $613,300, up 0.9% from last month and 4.6% from a year ago. Two-storey homes decreased to $710,900, down 2.3% from last month but up 1.2% from a year ago. Townhouses and apartments saw declines, with prices at $489,100 and $378,600 respectively, showing significant drops from both short-term and long-term comparisons.
The following table displays March’s benchmark prices for all housing types within LSTAR’s jurisdiction and shows how they compare with those recorded in the previous month and three months ago.
| Benchmark Type | March 2025 | Change Over February 2025 |
Change Over December 2024 |
| LSTAR Composite | $614,300 | ↓1.3% | ↑0.7% |
| LSTAR Single-Family | $666,100 | ↓1.1% | ↑1.6% |
| LSTAR One Storey | $613,300 | ↑0.9% | ↑4.3% |
| LSTAR Two Storey | $710,900 | ↑2.3% | ↑0.1% |
| LSTAR Townhouse | $489,100 | ↓1.6% | ↓1.2% |
| LSTAR Apartment | $378,600 | ↓0.3% | ↓7.8% |
According to a recent study1 by Altus Group, an average housing transaction in Ontario generated an average of $88,966 in spin-off spending per transaction from 2020 to 2022. These expenses include legal fees, appraisers, moving costs, new appliances, and home renovation expenses.
Employment resulting from home sales is also significant, according to the Altus study. Resale housing activity created an estimated 106,565 jobs annually in Ontario from 2020 to 2022. Jobs include manufacturing, construction, finance and insurance.
