September 2023 Shows More Signs of Stabilization

September Shows More Signs of Stabilization

September ushered 1,320 new listings on the local home market, 12.6% more than the same time a year ago. The number of new listings is the highest recorded for September since 2014.

“As new listings start to see larger increases, we have moved into a marketplace that shows some balance between sellers and buyers,” said Adam Miller, 2023 Chair of the London and St. Thomas Association of REALTORS® (LSTAR). “Housing supply also saw a healthy jump to 4.4 months of inventory, from 3.4 months in August. We haven’t seen those kinds of numbers in years.”

September home sales tapered slightly, with 476 homes exchanging hands via the LSTAR MLS® System, down 6.5% compared to September 2022. The September total was a little down from the previous month, which recorded 569 sales.

“With the affordability challenges and increased inventory, we expected a dip in activity,” Miller said. “When you compare the sales over the last few months, the activity is fairly consistent. There is still high demand for homes across the region. With less urgency and more options, it’s giving buyers more time in the market.”

The table below highlights home sales, average home prices and benchmark prices in LSTAR’s jurisdiction over the past four months.

The overall sales-to-new listing ratio for LSTAR was 36.1% in September, down from 46.9% in August. According to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced market.

“It’s important to remember that every home transaction is unique,” Miller said. “Based on what the Bank of Canada decides to do during its next announcement on October 25, your local REALTOR® can help navigate this ever-changing environment, with real-time data and professional guidance.”

The September average home price was $633,848, down from $663,663 in August. The composite MLS® Home Price Index (HPI) Benchmark Price was $595,300 down from $607,400 in August. The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.

The table below shows the September benchmark prices for all housing types within LSTAR’s jurisdiction, comparing changes from the previous month and three months ago.