Uncategorized March 5, 2024

Market Watch for Feb 2024 by LSTAR

February 5, 2024

January 2024 Market Watch by LSTAR

January 4, 2024

Market updates for December 2023

December 7, 2023

LSTAR’S NEWS RELEASE FOR NOVEMBER 2023

October 4, 2023

September 2023 Shows More Signs of Stabilization

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Home Sales Taper off in August 2023

July 6, 2023

House updates for June 2023

LSTAR’s News Release for June 2023

Housing Market Remains Stable

The local housing market continued its steady streak in June, with 745 homes exchanging hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). Housing supply increased from 1.7 months of inventory in May to 2.2 months of inventory in June, showing signs of market stabilization.

“The sales activity in June is consistent with the activity from the last several months,” said 2023 LSTAR President Adam Miller. “This happened despite another interest rate hike last month. Halfway through the year, the sales demonstrate the strong demand for home across the region, which is very encouraging.”

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

March
2023

April
2023

May
2023

June
2023

LSTAR
Home Sales

685 723 846 745

LSTAR’s Overall Average Price

$653,611 $664,149 $682,561 $675,923

LSTAR’s Composite MLS® HPI Benchmark Price

$592,600 $607,200 $619,800 $626,200

The overall sales-to-new listing ratio for LSTAR was 52.7% in June, slightly down from 60.6% in May. According to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced market.

“Although the data indicates a more stable marketplace, it’s important to remember that every home transaction is unique,” Miller said. “Depending on what the Bank of Canada decides to do during its July 12 announcement, your local REALTOR® can provide the necessary support on navigating the evolving environment, with real-time data and professional guidance.”

The June average home price was $675,923, slightly down from $682,561 in May. The composite MLS® Home Price Index (HPI) Benchmark Price was $626,200, up from $619,800 in May. 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 June benchmark prices for all housing types within LSTAR’s jurisdiction, comparing changes from the previous month and three months ago.

MLS® Home Price Index Benchmark Prices

BENCHMARK TYPE JUNE 2023 CHANGE OVER MAY 2023 CHANGE OVER MARCH 2023
LSTAR Composite $626,200 ↑1.0% ↑5.6%
LSTAR Single-Family $674,300 ↑1.1% ↑5.3%
LSTAR One Storey $610,300 ↑0.5% ↑5.7%
LSTAR Two Storey $719,200 ↑1.5% ↑5.2%
LSTAR Townhouse $520,300 ↑1.3% ↑4.8%
LSTAR Apartment $392,800 ↓0.3% ↑12.8%

In terms of housing preferences, the single-family home remained the top choice among local buyers, with 543 units sold, followed by 108 condo townhouses and 52 apartments.

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June 6, 2023

May 2023 Market Updates

Local Housing Market Rebounds

In May 2023, 1,397 new listings came on the local market and 846 homes exchanged hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). While the number of new listings is 23.9% lower than in May 2022, the number of sales is 1.3% higher than a year ago.

LSTAR’s overall sales-to-new listings ratio for the entire area stood at 60.6% last month. Moreover, the inventory continued to decline, dwindling from 1.8 months in April to a mere 1.7 months in May.

“The month-over-month increases in home sales and prices continued in May in LSTAR’s jurisdiction, thus indicating a further rebound of the local real estate market,” said 2023 LSTAR President Adam Miller. “Throughout the last three months of 2023, an upward trajectory in the quantity of residential property sales and corresponding price hikes has persistently caught our attention. These trends demonstrate the enduring presence of a fervent demand for properties in our area, despite the obvious lack of housing supply,” Miller added.

The table below highlights the average home prices in LSTAR’s primary regions for May, comparing them to the benchmark prices in those same areas.

Area May 2023 MLS® HPI Benchmark Price May 2023 Average Price
Central Elgin $644,500 $781,982
London East $508,100 $527,848
London North $730,400 $753,265
London South $617,900 $682,189
Middlesex Centre $863,000 $972,914
St. Thomas $543,100 $599,781
Strathroy-Caradoc $762,700 $683,989
LSTAR $619,800 $682,56

Despite a 10% decrease in LSTAR’s average home price and an 11.9% decline in the composite MLS® Home Price Index (HPI) Benchmark Price compared to the same period last year, these figures showed improvement compared to earlier this year. The average home price in May 2023 reached $682,561, while the composite MLS® HPI Benchmark Price sat at $619,800.

Furthermore, the table below presents the May benchmark prices for all housing types within LSTAR’s jurisdiction, showcasing a comparison between current values, those from the previous year, and those from six months ago.

MLS® Home Price Index Benchmark Prices

Benchmark Type May 2023 Change Over
May 2022
Change Over
January 2023
LSTAR Composite $619,800 ↓11.9% ↑7.4%
LSTAR Single-Family $666,900 ↓11.1% ↑8.2%
LSTAR One Storey $607,000 ↓11.1% ↑7.7%
LSTAR Two Storey $708,500 ↓11.0% ↑8.6%
LSTAR Townhouse $513,400 ↓15.2% ↑5.2%
LSTAR Apartment $394,000 ↓15.0% ↑0.9%

In terms of housing preferences, the single-family home remained the top choice among local buyers, with 608 units sold, followed by 128 condo townhouses and 68 apartments. “Notably, condo and apartment sales experienced substantial year-over-year increases in May, rising by 18.5% and 13.3%, respectively. Additionally, apartments saw the smallest decline in average price compared to the previous year,” Miller noted.

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May 3, 2023

April Market Home Sales

Growing Demand and Low Inventory Fuel Home Price Gains

In April 2023, 964 new properties came on the market and 723 homes exchanged hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR).

“Since the beginning of 2023 we’ve been noticing steady month-over-month increases in the number of home sales and prices, which indicate that the property demand and the housing supply issue are still there. Both of these are also demonstrated by the sales-to-new-listings ratio, which sky-rocketed in April, and by the dwindling housing inventory,” said 2023 LSTAR President Adam Miller.

The overall sales-to-new listings ratio for the entire London-St. Thomas area climbed from 63.5% in March to 75% in April, while the inventory plunged from 2 months in March to only 1.8 in April.

“Out of the five main regions of LSTAR, the city of St. Thomas was the one with the lowest number of properties available for sale, with only one month of housing inventory in April,” Miller emphasized.

“In their turn, the low inventory and the growing housing demand are putting upward pressure on the local average and MLS® HPI Benchmark Prices,” Miller added.

In April 2023, in the jurisdiction of LSTAR, the average home price and the composite MLS® Home Price Index (HPI) Benchmark Price were lower compared to the same month in the previous year, by 13.6% and 17.1% respectively. However, both these figures were higher than those seen in the previous months. The average home price for LSTAR in April 2023 was $664,149, while the composite MLS® HPI Benchmark Price was $607,200.

The following table shows how home sales and prices evolved in the first quarter of this year in LSTAR’s jurisdiction.

January 2023 February 2023 March 2023 April
2023
LSTAR Home Sales 344 436 685 723
LSTAR’s Overall Average Price $585,252 $621,912 $653,611 $664,149
LSTAR’s Composite MLS� HPI Benchmark Price $568,300 $583,500 $592,600 $607,200

Last month, the single-family home remained on top of the local buyers’ preferences, with 519 units sold. The condo townhouse ranked second, with 100 units changing hands. The apartment came in third place, with only 61 units sold.

“After the Bank of Canada pressed the pause button on interest rate hikes, single-family homes saw month-over-month gains in their MLS® HPI Benchmark prices. In April 2023, LSTAR’s overall MLS® HPI Benchmark Price for single-family homes stood at $654,100,” observed Miller.

The following table shows the April 2023 benchmark prices for all housing types in LSTAR’s jurisdiction and how they compare with the values from 2022.

MLS® Home Price Index Benchmark Prices

BENCHMARK TYPE APRIL 2023 CHANGE OVER APRIL 2022
LSTAR Composite $607,200 ↓17.1%
LSTAR Single-Family $654,100 ↓16.5%
LSTAR One Storey $583,400 ↓18.7%
LSTAR Two Storey $703,100 ↓15.1%
LSTAR Townhouse $500,400 ↓19.8%
LSTAR Apartment $382,400 ↓21.6%

“When compared to other values logged provincially and nationally, homes in our area continue to remain relatively affordable,” Miller said.

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April 5, 2023

March Market News

LSTAR’s News Release for March 2023

Local Housing Market Tightens

In March 2023, only 1,079 new residential listings were posted on the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). This makes last month the March with the third lowest number of new listings in the last decade.

The number of residential transactions for the month stood at 685, thus marking the lowest number of home sales seen by LSTAR in March since 2014. The overall sales-to-new listings ratio for the entire jurisdiction of LSTAR jumped to 63.5%, and the inventory fell from 3 months in February to only 2 in March.

“The market downturn caused by the rising borrowing costs has created a window of opportunity for buyers to enter the market at a potentially lower price point, but the lack of inventory remains a concern. The coming months will be crucial in determining if the current trend continues, or if there will be a rebound in the market,” said 2023 LSTAR President Adam Miller.

“Despite the ongoing economic uncertainty, the figures recorded by LSTAR in March indicate a tightening of the local real estate market, which is also reflected in the average and HPI benchmark prices observed across the region,” Miller added.

In March 2023, the average home price and composite MLS® Home Price Index (HPI) Benchmark Price in the jurisdiction of LSTAR were significantly lower compared to the same month in the previous year, by 20.6% and 23.4% respectively. However, these figures were notably higher than those recorded in 2020 and earlier years. In addition, both metrics saw modest month-over-month gains. The average home price for LSTAR in March 2023 was $653,611, while the composite MLS® HPI Benchmark Price was $592,600.

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

Area March 2023 MLS® HPI Benchmark Price March 2023 Average Price
Central Elgin $605,200 $789,663
London East $484,000 $476,392
London North $706,000 $749,499
London South $588,100 $659,698
Middlesex Centre $825,600 $957,712
St. Thomas $517,400 $602,530
Strathroy-Caradoc $723,600 $564,180
LSTAR $592,600 $653,611

Last month, the most popular type of housing in LSTAR’s jurisdiction remained the single-family home, with 497 units sold, followed by the condo townhouse with 98 units changing hands. The apartment came in third place, with only 57 units sold.

“While the average price of single-family homes experienced a year-over-year decline, they still fared better than other house types, with a decrease of only 19.5% compared to March 2022. Moreover, their average price remains 48% higher than that of the third month of 2020. Additionally, the MLS® HPI benchmark price for single-family homes is 46.5% higher than three years ago,” noted Miller.

The following table shows the March 2023 benchmark prices for all housing types in LSTAR’s jurisdiction and how they compare with the values from 2022 and 2020.

MLS® Home price Index Benchmark Prices
BENCHMARK TYPE MARCH 2023 CHANGE OVER MARCH 2022 CHANGE OVER MARCH 2020
LSTAR Composite $592,600 ↓23.4% ↑44.6%
LSTAR Single-Family $638,500 ↓22.7% ↑46.5%
LSTAR One Storey $576,000 ↓23.2% ↑44.9%
LSTAR Two Storey $681,800 ↓22.4% ↑47.5%
LSTAR Townhouse $499,500 ↓24.2% ↑46.1%
LSTAR Apartment $350,600 ↓31.9% ↑18.8%

“When compared to other values recorded provincially and nationally, homes in our area continue to remain relatively affordable,” Miller said.

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