March home sales steady, COVID impact coming

LSTAR: March home sales remain steady; marketplace will be impacted in the coming weeks and months

THE LONDON AND St. Thomas Association of Realtors announced in its monthly report today that 866 homes exchanged hands in March, an increase of 6.9 per cent compared to March 2019. Units sold are on par with the 10-year average.

“For the first quarter, home sales in 2020 are at 2,170, 12.3 per cent ahead of 2019,” said 2020 LSTAR president, Blair Campbell. “But with the COVID-19 pandemic affecting all businesses, there is an expectation the marketplace will be impacted in the coming weeks and months. We’ll have to wait and see what this means for LSTAR’s jurisdiction, based on data for the upcoming monthly cycles.”

Compared to a year ago, the overall average home price experienced an increase of 10.3 per cent, rising to $447,152 in March. This average sales price includes all housing types, from single detached homes to high rise apartment condominiums. Across the five major areas of LSTAR’s region, average home sales price continued to increase. The following table illustrates last month’s average home prices by area and how they compare to the values recorded at the end of March 2019.

“Looking at average prices in London’s three main geographic areas, London East saw the biggest gain compared to March 2019,” Campbell said.

The average home price in London East was $393,661, up 20.8 per cent from the same time last year, while London North increased 1.4 per cent to $527,231. In London South (which contains data from the west), the average home price was $458,666, up 13.8 per cent over March 2019. St. Thomas saw an average price of $392,196, an increase of 8.5 per cent from last March.

“The business of real estate affects many facets of the economy, so we’ll be monitoring the impacts of the COVID-19 pandemic,” added Campbell. “First I want to stress that LSTAR’s highest priority during this challenging time is the safety and well-being of its members and staff. We continue to urge members to practice social distancing and follow the guidelines set by our public health authorities. It is not business as usual.”