Facebook
X
Pinterest
Copy Link
|
|
|
LSTAR’S NEWS RELEASE FOR NOVEMBER 2023
September 2023 Shows More Signs of Stabilization
|
|
|
Home Sales Taper off in August 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 |
April |
May |
June |
|
|---|---|---|---|---|
|
LSTAR |
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 |
“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.
| 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% |
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 |
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.
| 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% |
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 |
“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.
| 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% |
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 |
“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.
| 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% |
February 2023 Market Watch
LSTAR’s News Release for February 2023
Local Home Prices See Modest Growth
In February 2023, the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR) recorded only 436 residential transactions, thus marking the lowest number of February home sales seen by LSTAR since 1995.
Despite the sluggish sales, 761 new listings entered the market during the same time frame, bringing the number of active listings to 1,320 by month-end. The overall sales-to-new listings ratio for the entire jurisdiction of LSTAR was 57.3%.
Compared to February 2022, both the overall average home price and the composite MLS® Home Price Index (HPI) Benchmark Price were significantly lower, down 24.2% and 25.1%, respectively. Despite this, both metrics saw a modest month-over-month growth. LSTAR’s overall average home price was $621,912 last month, while the composite MLS® HPI Benchmark Price came in at $583,500.
“With the Bank of Canada signalling that interest rates may have peaked and the consumer confidence index sitting at its highest level since September, I am feeling optimistic about the local housing market. The frantic bidding wars of the past seem to be now in our rearview mirror. And home buyers are getting more and more comfortable with taking on variable-rate mortgages, feeling encouraged by this much calmer environment. In these conditions, the spring market could surprise us,” said 2023 LSTAR President Adam Miller.
To further understand the market, the following table illustrates February’s average home prices in LSTAR’s main regions compared to the benchmark prices for those same areas.
| Area | February 2023 MLS® HPI Benchmark Price | February 2023 Average Price |
|---|---|---|
| Central Elgin | $581,600 | $772,488 |
| London East | $473,500 | $545,823 |
| London North | $701,900 | $716,079 |
| London South | $579,700 | $591,098 |
| Middlesex Centre | $833,600 | $901,034 |
| St. Thomas | $499,100 | $552,500 |
| Strathroy-Caradoc | $713,500 | $672,013 |
| LSTAR | $583,500 | $621,912 |
“Out of all house types, single-family homes were the ones that drove the month-over-month increases we noticed in the average and benchmark prices. Last month, the average price of a single-family home was $673,226 in our area, 25.2% lower than in February 2022, but also 5.6% higher than in January 2023. In addition, its MLS® HPI benchmark price was 4% higher than in the previous month,” Miller observed.
Providing a comprehensive overview of the benchmark prices for all housing types in LSTAR jurisdiction, the following table presents the figures for February 2023. This data allows for a direct comparison with the benchmark prices from the preceding years of 2022 and 2020.
| BENCHMARK TYPE | FEBRUARY 2023 | CHANGE OVER FEBRUARY 2022 | CHANGE OVER FEBRUARY 2020 |
| LSTAR Composite | $583,500 | ↓25.1% | ↑44.0% |
| LSTAR Single-Family | $628,300 | ↓25.0% | ↑46.4% |
| LSTAR One Storey | $558,400 | ↓25.2% | ↑43.0% |
| LSTAR Two Storey | $676,300 | ↓24.8% | ↑48.4% |
| LSTAR Townhouse | $489,400 | ↓25.7% | ↑43.3% |
| LSTAR Apartment | $353,800 | ↓26.1% | ↑18.2% |
December 2022 Market New Release
LSTAR’s News Release for December 2022
Quiet December Wraps Up Modest Year
299 residential properties exchanged hands last month in the jurisdiction of the London and St. Thomas Association of REALTORS® (LSTAR), bringing the total number of homes sold through the Association’s Multiple Listing Service® (MLS®) System in 2022 to 7,639.
“The last month of 2022 was the December with the lowest number of home sales recorded by LSTAR in the last decade. And, overall, 2022 saw the second lowest number of home sales since 2012,” said Randy Pawlowski, 2022 LSTAR President.
“No one could have predicted that at the beginning of the year when the local housing market peaked, fueled by the lingering pandemic and its socio-economic effects. Once the economy started to get back on track and the Bank of Canada began increasing its benchmark rate, the dynamics of the local housing market changed drastically. One could say that, for LSTAR Members, 2022 came in as a roaring lion and went out like a lamb,” he added.
While residential transactions were at their second-lowest point in the last decade, the number of new listings climbed to 14,126 – the second-highest yearly total during the same time frame. This brought the number of months of inventory to 3.8 as of December 31st.
“December’s sales-to-new listings ratio sat at 74.6, which shows that housing demand is still high in our area,” Pawlowski observed. “With the increased levels of inventory, local Buyers have now more choices and time to shop for new homes. However, the considerable loss of affordability triggered by the successive interest rate hikes continues to challenge local Buyers. And on the supply side, many homeowners are reluctant to list their properties, given the recent drops in average and HPI benchmark prices,” he noted.
Compared to a year ago, LSTAR’s average home price decreased, but remained higher than the figures seen in 2020 and before. Year-to-date, the overall average price of LSTAR sat at $724,583. In December, LSTAR’s overall average home price was $612,770, 14% lower than a year ago, but 10.5% higher than in December 2020. Similarly, the composite MLS® Home Price Index (HPI) Benchmark Price was $566,600 last month, 15.1% down from last year, but 17.1% higher than in December 2020.
The following table shows how December’s average home prices in LSTAR’s main regions compare to the benchmark prices for the same areas.
| Area | December 2022 MLS® HPI Benchmark Price | December 2022 Average Price |
|---|---|---|
| Central Elgin | $588,600 | $549,343 |
| London East | $458,900 | $448,002 |
| London North | $676,200 | $713,297 |
| London South | $563,200 | $613,050 |
| Middlesex Centre | $804,600 | $901,286 |
| St. Thomas | $496,100 | $521,154 |
| Strathroy-Caradoc | $693,700 | $657,985 |
| LSTAR | $575,500 | $615,247 |
The following table shows the December benchmark prices for all housing types in LSTAR’s jurisdiction and how they compare with the values from the previous year.
| BENCHMARK TYPE | DECEMBER 2022 | CHANGE OVER DECEMBER 2021 |
| LSTAR Composite | $566,600 | ↓15.1% |
| LSTAR Single-Family | $601,200 | ↓15.6% |
| LSTAR One Storey | $544,500 | ↓11.8% |
| LSTAR Two Storey | $640,000 | ↓17.6% |
| LSTAR Townhouse | $505,100 | ↓12.2% |
| LSTAR Apartment | $377,700 | ↓13.4% |
LSTAR’s Statistical Package for December 2022
The December 2022 Statistical Package of LSTAR has 751 pages. Because it is a large file, it might take a longer time to load on your screen.
The Stats Package includes the MLS® HPI benchmark prices for all neighbourhoods and subdivisions that fall under the jurisdiction of LSTAR, as well as descriptions of benchmark homes for each of these.
To navigate the Stats Pack PDF file, click on the hamburger symbol 
displayed in the left upper corner of your screen to reveal all the bookmarks of the document.
To find information about London East, please go to “East Residential”. The information about London North can be found under “North Residential” and the London South data – under “South Residential”.
Click on the following link to see the complete Statistical Package of LSTAR for December 2022:
A more condensed version of the LSTAR Statistical Package can be found here.
LSTAR’s News Release for November 2022
LSTAR’s News Release for November 2022
Local Housing Market’s Correction Continues
451 residential properties exchanged hands last month through the Multiple Listing Service® (MLS®) System of the London and St. Thomas Association of REALTORS® (LSTAR), 44% less than in November 2021. LSTAR Members’ home sales included 336 single family homes, 64 condo townhouses, and 36 apartments – all significantly down from a year ago.
“In the last two years, the local housing market’s frenzy was artificially fueled by the socio-economic climate of the pandemic. Now, that the socio-economic conditions are completely different, the local housing market is in correction mode,” said Randy Pawlowski, 2022 LSTAR President. “The market is especially affected by the Bank of Canada’s interest rate hikes, which intensify buyer reluctance and weaken people’s purchasing power,” he added.
While residential transactions were at their lowest point in the last decade, the number of new listings climbed to 875 in November, a new record high for the eleventh month of the year. This increased the level of the local housing inventory, which sits now at 3.3 months.
“The housing demand is still high in our area, and with the increased levels of inventory, local Buyers have now more choices and time to shop for new homes. However, the uncertain economic conditions are keeping many prospective Buyers on the sidelines,” Pawlowski observed.
Compared to a year ago, the average home price decreased, but remained higher than the figures seen in 2020 and before. LSTAR’s overall average home price was $615,247 in November, 7.8% less than a year ago, but 13.8% higher than in November 2020. On the other hand, the composite MLS® Home Price Index (HPI) Benchmark Price was $575,500 last month, 10% down from last year, and also 9.8% lower than in November 2020.
The following table shows how November’s average home prices in LSTAR’s main regions compare to the benchmark prices for the same areas.
| Area | November 2022 MLS® HPI Benchmark Price | November 2022 Average Price |
|---|---|---|
| Central Elgin | $582,300 | $622,909 |
| London East | $468,500 | $502,606 |
| London North | $687,400 | $705,725 |
| London South | $569,800 | $617,379 |
| Middlesex Centre | $812,200 | $921,460 |
| St. Thomas | $492,900 | $515,180 |
| Strathroy-Caradoc | $712,200 | $637,977 |
| LSTAR | $575,500 | $615,247 |
All housing types recorded year-over-year decreases in both their average and HPI benchmark prices. “As with any major asset, it’s important to take a long-term approach when looking at how much your investment has appreciated. The substantial home equity gains seen over the last two years were not sustainable. However, if you have owned your property for a longer period of time, your equity has increased significantly and can buffer the new price corrections,” Pawlowski explained.
The following table shows the November benchmark prices for all housing types in LSTAR’s jurisdiction and how they compare with the values from the previous year.
| BENCHMARK TYPE | NOVEMBER 2022 | CHANGE OVER NOVEMBER 2021 |
| LSTAR Composite | $575,500 | ↓10.0% |
| LSTAR Single-Family | $614,000 | ↓10.2% |
| LSTAR One Storey | $562,000 | ↓7.3% |
| LSTAR Two Storey | $649,500 | ↓11.8% |
| LSTAR Townhouse | $490,800 | ↓9.9% |
| LSTAR Apartment | $391,200 | ↓5.4% |
“When compared to other values recorded provincially and nationally, homes in our area continue to remain relatively affordable,” Pawlowski said. The following chart shows HPI benchmark prices for November, courtesy of CREA.
