LSTAR’S NEWS RELEASE FOR FEBRUARY 2024

Home Sales, Prices Climb in February

594 homes exchanged hands last month via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR), marking a 33.2% increase in sales activity over February 2023. The number of newly listed properties rose from 873 in January to 1,024 in February, showing a 31.8% increase over a year ago.

“While the number of home sales remained on par with LSTAR’s 10-year-average for February, the number of newly listed properties soared to new heights, reaching its second highest value for that month,” said 2024 LSTAR Chair Kathy Amess. “Many of the Sellers who chose to adopt a ‘wait-and-see’ approach in the last months of 2023 were encouraged by the fact that the Bank of Canada decided once again not to increase its benchmark rates,” she explained.

Out of the 594 residential properties sold in February in LSTAR’s jurisdiction, 417 were single-family homes, 104 were townhouses, and 54 – apartments. The average price for a single-family home in LSTAR’s jurisdiction surged from $605,785 in the first month of the year to $682,780 last month, while that of a townhouse climbed only slightly – from $504,304 in January to $507,229 in February. The average price of an apartment from the London-St. Thomas region increased from $319,210 in January to $382,496 last month.

“In addition, the average prices for single-family homes and apartments saw slight year-over-year increases, rising by 1.7% and 3.9% respectively,” Amess emphasized.  “However, when compared to February 2023, the average price of a townhouse remained virtually unchanged,” she added.

Housing supply plummeted from 3.3 months of inventory in January to 2.7 months in February.

“LSTAR’s sales-to-new listings ratio settled at 58% last month. This is something that we like to see because indicates a fairly balanced real estate market, which benefits all the parties involved,” Amess said.

The overall average home price of LSTAR saw a month-over-month uptick – from $605,785 in January to $617,790 last month – but was 0.2% lower than in February 2023. However, the Composite MLS® Home Price Index (HPI) Benchmark Price posted month-over-month and year-over-year gains – of 2.5%, and 1.7% respectively – climbing to $587,400.

The table below displays an analysis of February’s average and MLS® HPI Benchmark Prices in LSTAR’s main regions.

Home Sales, Listings Take a Leap in January

439 residential transactions were recorded last month via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR), 28.7% more than in January 2023. The number of newly listed properties climbed from 386 in December 2023 to 873 in January 2024.

“The number of home sales is consistent with LSTAR’s 10-year-average for January, but the jump in newly listed properties is significant.  In January, we saw the third highest number of new listings for that month,” said 2024 LSTAR Chair Kathy Amess.

Out of the 439 properties sold in January, 329 were single-family homes, 74 were townhouses, and 31 – apartments. January’s average price for a single-family home in LSTAR’s jurisdiction sat at $660,686, while that of a townhouse settled at $504,304. The average price of an apartment from the London-St. Thomas region was $319,210. “When compared to last January the average prices for townhouses and apartments saw a slight decline. However, the average price of a single-family home increased by 3.8%,” Amess emphasized.

Housing supply dropped from 4.4 months of inventory in December to only 3.3 months in January.

“LSTAR’s sales-to-new listings ratio sat at 50.3% last month.  This and our January stats indicate a stable real estate market, which is positive news for everyone.” Amess said.

The average home price for the entire LSTAR jurisdiction reached $605,785 last month, up 3.9% over January 2023. However, the Composite MLS® Home Price Index (HPI) Benchmark Price ticked up at $573,300, 0.4% higher than a month ago, but 0.7% lower than a year ago.

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

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.

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.