The pandemic bump
Remote work, comparatively cheaper prices propel home sales in the London region to second-best year on record
ACCORDING TO THE London and St. Thomas Association of Realtors (LSTAR), 2020 will go into the books as the second-best year for home sales in history.
A total of 9,976 homes traded hands last year in the LSTAR jurisdiction, which includes Middlesex and Elgin Counties. A total of 596 sales were recorded in the month of December ― the most ever for a month.
December 2020 also marked the fourth straight month the region broke the previous sales record.
“LSTAR realtors started the year with a bang and, contrary to the somber predictions sparked by the coronavirus restrictions, they ended it on the same note,” says 2020 LSTAR president, Blair Campbell.
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“Globally, this year, people were forced to spend much more time in their homes with their families, which made them reevaluate their housing choices,” continues Campbell. “Some of the trends that emerged saw a higher demand for moving to rural neighbourhoods, owning a house with more rooms for separate work and learning spaces and having a good-sized backyard with a pool. Because all of these might feel out of reach in the bigger cities, many Ontarians have decided to relocate in smaller urban areas, such as London and St. Thomas, thus contributing to the local market’s frenzy.”
The increased demand, coupled with continued low inventory, pushed the home prices up in all five main regions of LSTAR in 2020, with the average sale price hitting $555,000 in December.
In London proper at the end of December, North London remained the most expensive area of the city, where homes sold on average for $673,872, up 29.3 per cent compared to December 2019. In London South, it was $584,997, 24.6 per cent over the previous year, while London East saw its average home price climb to $434,195, up 25.2 per cent over a year ago.
In St. Thomas, the average sales price was $440,557, up 10.6 per cent over December 2019.