LSTAR’s News Release for SEPTEMBER 2022

September Home Sales Continue Cooling Trend

The local housing market continued to cool off in September, with 497 homes exchanging hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). Housing supply made a healthy gain from 2.7 months of inventory in August to 3.4 months of inventory in September, showing more signs of market stabilization.

“An additional interest rate hike, the fifth one so far in 2022, continues to impact home sales activity,” said 2022 LSTAR President Randy Pawlowski. “We are experiencing increased inventory levels, indicating a more balanced marketplace. For historical perspective, the 3.4 months of inventory is the highest recorded for the month of September, since September 2015.”

The average home sales price and composite MLS® Home Price Index (HPI) Benchmark Price both edged slightly down from August to September. LSTAR’s overall average home price fell from $648,036 in August to $635,256 in September. The composite MLS® HPI Benchmark Price saw a marginal decrease from $599,500 in August to $596,900 in September. The data represents a trend the majority of local real estate markets are seeing across the country, according to the Canadian Real Estate Association (CREA).

“Although the market is slowly stabilizing, it’s important to remember that every home transaction is unique,” Pawlowski said. “As the market evolves, your local REALTOR® can provide support on how to navigate this changing environment, with real-time data and professional guidance.”

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

Area	September 2022 MLS® HPI Benchmark Price	September 2022 Average Price
Central Elgin	$601,400	$675,231
London East	$487,900	$495,326
London North	$713,000	$759,555
London South	$591,000	$614,261
Middlesex Centre	$839,600	$1,025,445
St. Thomas	$508,800	$541,569
Strathroy-Caradoc	$719,100	$733,215
LSTAR	$596,900	$635,256

“The single-family home remained the most popular style choice for local home buyers with 365 units sold, while apartments had the largest gain in average price, up 8.3% over the same time a year ago,” Pawlowski said.

The following table shows the September benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from the previous year.

MLS® Home price Index Benchmark Prices
BENCHMARK TYPE	SEPTEMBER 2022	CHANGE OVER SEPTEMBER 2021
LSTAR Composite	$596,900	↓1.3%
LSTAR Single-Family	$641,000	↓1.1%
LSTAR One Storey	$578,900	↓0.2%
LSTAR Two Storey	$683,500	↓1.5%
LSTAR Townhouse	$496,200	↓2.4%
LSTAR Apartment	$390,800	↓0.8%

“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 September, courtesy of CREA.

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LSTAR’s News Release for August 2022

August Signals a Soft Landing of the Local Real Estate Market

The number of homes sold in the jurisdiction of the London and St. Thomas Association of REALTORS® (LSTAR) fell by 34.8% in August from the same month last year, but saw an increase over the previous month, which indicates a soft landing of the local real estate market. More specifically, 607 residential transactions were recorded last month by LSTAR’s MLS® System – 324 less than a year ago, but up by 93 units from July.

“The softness seen over the last few months in the local real estate market was, undoubtedly, caused by the continuous rise in the mortgage interest rates, which has translated into higher borrowing costs,” said 2022 LSTAR President Randy Pawlowski. “However, the sales-to-new listings ratio, which reflects the share of new listings out of the total number of home sales, increased from 41.8% in July to 56.7% in August, moving our market into a more balanced territory,” he added. “This is encouraging, as it could signal a bit more support for the home selling prices in the coming months.”

In August, LSTAR’s composite MLS® Home Price Index Benchmark Price was $599,500, down 4% from July. However, this value is still 0.5% higher than the figure recorded for August 2021. Similarly, LSTAR’s overall average home price dropped slightly from $667,323 in July to $648,036 in August. Compared to the same period last year, this figure is still 5.2% higher. This represents a trend the majority of local markets are experiencing across the country, according to the Canadian Real Estate Association (CREA).

“When looking to buy or sell a home, it’s essential to remember that each transaction is unique and does not always reflect the trends observed in the overall activity of the local marketplace,” Pawlowski said. “Especially in changing markets, the expertise and real-time data provided by your local REALTOR® can be invaluable resources.”

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

Area	August 2022 MLS® HPI Benchmark Price	August 2022 Average Price
Central Elgin	$609,700	$731,641
London East	$488,900	$504,787
London North	$714,600	$777,251
London South	$594,200	$630,632
Middlesex Centre	$851,000	$1,335,846
St. Thomas	$520,600	$582,851
Strathroy-Caradoc	$719,800	$570,692
LSTAR	$599,500	$648,036

“The single-family home remained on top of the local home buyers’ preferences – with 473 units sold – but apartments saw the largest gain in average price, increasing 5.4% over the same time a year ago,” Pawlowski said.

The following table shows the August benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from the previous year.

MLS® Home Price Index Benchmark Prices
Benchmark Type	August 2022	Change over August 2021
LSTAR Composite	$599,500	↑ 0.5%
LSTAR Single-Family	$637,600	↑ 0.0%
LSTAR One Storey	$576,100	↑ 1.9%
LSTAR Two Storey	$679,600	↓ 0.9%
LSTAR Townhouse	$511,700	↑ 1.4%
LSTAR Apartment	$421,600	↑ 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 August, courtesy of the Canadian Real Estate Association (CREA).

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LSTAR’s News Release for June 2022

Market Cools off in June

1,727 new residential listings and 663 home sales were recorded in June 2022 in the London-St. Thomas area via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR).  The local housing supply increased from only 1.7 months of inventory in May to 2.8 months of inventory in June.

“While the number of new listings is the highest ever recorded by LSTAR in the month of June, the number of June home sales is at its lowest point in the last ten years,” said Randy Pawlowski, 2022 LSTAR President. “Our local market is cooling off rapidly, but home prices don’t follow suit as fast,” he added.

LSTAR’s composite MLS® Home Price Index Benchmark Price was down 7.8% from May, decreasing from $703,300 in May to $648,500 last month. However, this value is still 10.1% greater than the figure recorded in June 2021. Similarly, LSTAR’s overall average home price fell from $762,397 in May to $686,287 in June. Compared to the same period last year, this figure is still 8.9% higher.

“While the three consecutive interest rate hikes by the Bank of Canada succeeded to put some downward pressure on the home prices, the low housing supply is what keeps them relatively elevated. Even if the number of months of inventory increased to almost three, this value is still lower than normal. In a balanced market, the inventory should sit at 3.5 or 4 months,” Pawlowski said.

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

Area	June 2022 MLS® HPI Benchmark Price	June 2022 Average Price
Central Elgin	$637,700	$616,591
London East	$524,900	$547,492
London North	$781,700	$807,984
London South	$644,100	$696,067
Middlesex Centre	$925,400	$1,007,905
St. Thomas	$537,300	$576,680
Strathroy-Caradoc	$794,000	$657,051
LSTAR	$648,500	$686,287

“The favourite dwelling type of the local home buyers remains the single-family home: out of the 663 units sold last month, 493 were single-family homes,” Pawlowski explained. “The rest of the June transactions were comprised of 82 condo sales and 58 apartment sales,” he added.

In June, the average price for a single-family home in LSTAR’s jurisdiction stood at $736,158, that of a condo – at $583,321, and the overall average price for an apartment – at $413,576.

The following table shows the June benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from a year ago.

MLS® Home Price Index Benchmark Prices
Benchmark Type	June 2022	Change over June 2021
LSTAR Composite	$648,500	↑ 10.1%
LSTAR Single-Family	$689,000	↑ 9.1%
LSTAR One Storey	$626,900	↑ 9.7%
LSTAR Two Storey	$731,500	↑ 8.9%
LSTAR Townhouse	$575,800	↑ 16.4%
LSTAR Apartment	$425,900	↑ 10.6%

“Even if it’s higher than in many cities from other Canadian provinces, LSTAR’s composite HPI benchmark price places our area among the most affordable in Ontario,” Pawlowski observed. The following chart is based on data provided by the Canadian Real Estate Association (CREA) for June 1^st, 2022.

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LSTAR’s Statistical Package for June 2022

The June 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 June 2022:

• COMPLETE STATISTICAL PACKAGE

LSTAR’s News Release for May 2022

Inventory Levels Rise, but Prices Remain Elevated

In May 2022, 1,835 new residential listings were posted on the MLS® System of the London and St Thomas Association of REALTORS® (LSTAR), more than in any previous May in the Association’s history. The local housing supply increased from only 1.2 months of inventory in April to 1.7 months of inventory in May.

Sales, on the other hand, were more on par with those from the former decade, with only 844 homes exchanging hands last month in LSTAR’s jurisdiction.

“Even if in May the sales-to-new listings ratio dropped to 46%, a figure that, typically, indicates a market that tends to favour home buyers, benchmark and average prices saw only modest month-over-month declines,” said Randy Pawlowski, 2022 LSTAR President. “Compared to last year’s figures, both of these values are substantially higher,” he added.

LSTAR’s composite MLS® Home Price Index Benchmark Price was down 4% over April, falling from $739,700 in April to $703,300 last month. However, this value is still 17.6% greater than the figure recorded in May 2021. Similarly, LSTAR’s overall average home price decreased from $771,682 in April to $762,397 in May. Compared to the same period last year, this figure is 19.5% higher.

“One of the reasons why we are witnessing this level of stability is the change in population from migration and immigration. Only in the fourth quarter of 2021, Ontario’s population saw a net increase of 34,074 people. Many of these new Ontarians are now looking to buy homes they can afford in regions with good schools and hospitals. And, as it happens, our area checks all these boxes.” Pawlowski explained.

“Aside from the growing population, the existing housing supply is another factor that puts upward pressure on the local home prices. While the months of inventory saw slight increases, they are still at lower-than-usual levels. Normally, a healthy inventory should sit at around 3.5 or 4 months,” Pawlowski said.

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

Area	May 2022 MLS® HPI Benchmark Price	May 2022 Average Price
Central Elgin	$718,000	$825,705
London East	$570,800	$575,867
London North	$840,800	$890,455
London South	$699,500	$750,388
Middlesex Centre	$990,300	$1,270,684
St. Thomas	$597,800	$645,711
Strathroy-Caradoc	$875,200	$779,431
LSTAR	$703,300	$762,397

Out of the 844 units sold last month, 635 were single-family homes, 105 – condo townhouses, and 65 – apartments.

In May, the average price for a single-family home in LSTAR’s jurisdiction stood at $818,977, that of a condo – at $605,333, and the overall average price for an apartment – at $465,364.

The following table shows the May benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from a year ago.

MLS® Home Price Index Benchmark Prices
Benchmark Type	May 2022	Change over May 2021
LSTAR Composite	$703,300	↑ 17.6%
LSTAR Single-Family	$749,100	↑ 17%
LSTAR One Storey	$681,800	↑ 17.6%
LSTAR Two Storey	$795,300	↑ 16.8%
LSTAR Townhouse	$609,700	↑ 22.5%
LSTAR Apartment	$473,400	↑ 19.4%

“Even if it’s higher than in many cities from other Canadian provinces, LSTAR’s composite HPI benchmark price places our area among the most affordable in Ontario,” Pawlowski observed. The following chart is based on data provided by the Canadian Real Estate Association (CREA) for May 1^st, 2022.

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LSTAR‘s News Release for March 2022

March Sees Record Number of Listings, but Inventory Remains Low

1,049 homes were sold in March 2022 in the London-St. Thomas area via LSTAR‘s MLS® System. During the same time frame, 1,544 listings came on the local market, which makes last month the March with the highest number of listings in the history of the London and St. Thomas Association of REALTORS®.

“Despite the record number of listings, our inventory – the number of active listings at month end – saw just a slight increase from last month, creeping up from 0.5 months to only 0.6,” said Randy Pawlowski, 2022 LSTAR President. “The sales-to-new-listings ratio for the entire jurisdiction of LSTAR was 67.9%, much lower than a year ago, but still indicating a Sellers’ market,” he continued. “The latest interest rate hike by the Bank of Canada may have put a damper on what has been so far a truly fierce competition among local home buyers,” he explained.

In March, the overall average price for all home types in our area was $823,954, whereas LSTAR‘s composite MLS® Home Price Index Benchmark Price sat at $774,200. “These figures suggest that the pace of home price gains might have started to slow down in our area,” Pawlowski said. “It’s way too early to predict the impact of this new measure, but Ontario Government’s recent decision to increase the non-resident speculation tax to 20% and expand it throughout the whole province might also help tame home prices,” he added.

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

Area	March 2022 MLS® HPI Benchmark Price	March 2022 Average Price
Central Elgin	$826,600	$927,880
London East	$685,600	$669,005
London North	$894,800	$947,700
London South	$770,100	$823,904
Middlesex Centre	$1,085,800	$1,228,124
St. Thomas	$665,200	$728,860
Strathroy-Caradoc	$869,200	$860,138
LSTAR	$774,200	$823,954

Out of the 1,049 units sold last month, 756 were single-family homes, 140 – condo townhouses, and 107 – apartments.

“In March, the average price for a single-family home in LSTAR‘s jurisdiction sat at $894,306, that of a condo – at $692,187 and the overall average price for an apartment – at $501,961,” Pawlowski said. “Regarding condo townhouses, it’s interesting to see how well they are selling and how much their benchmark price has appreciated in the last year: last month was LSTAR‘s second-best March for condominium sales and the MLS® HPI benchmark price for a local apartment has grown by 49.7% over a year ago,” he noted.

The following table shows the March benchmark prices for all housing types in LSTAR‘s jurisdiction and how they compare with the values from a year ago.

MLS® Home Price Index Benchmark Prices
Benchmark Type	March 2022	Change over March 2021
LSTAR Composite	$774,200	↑ 35.9%
LSTAR Single-Family	$831,100	↑ 33.4%
LSTAR One Storey	$777,900	↑ 40.1%
LSTAR Two Storey	$884,700	↑ 29.3%
LSTAR Townhouse	$638,700	↑ 49.7%
LSTAR Apartment	$445,100	↑ 36.5%

“The latest figures achieved by LSTAR‘s HPI benchmark prices and average sale prices place our area somewhere in the middle of the Canadian home affordability scale,” Pawlowski observed. The following table is based on data provided by the Canadian Real Estate Association (CREA) for March 1^st, 2022.

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