No hurry to cool

Home sales continue to sizzle with region recording its second-best May on record

MAY 2021 WAS another rocket-fuelled month for residential real estate sales in the region, with the London St. Thomas Real Association of Realtors recording 1,258 residential transactions via its MLS systems.

That number represented an 87.5 per cent jump from May 2020, when the local real estate market was experiencing a pandemic-induced decline.

Compared to May 2019 figures, the 1,258 recorded sales represent a 17 per cent increase. It’s also a small bump compared to month prior (April 2021) figures, when a total of 1,231 homes exchanged hands in the region.

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“This number marks the second-best May for LSTAR home sales, surpassed only by May 2017, when LSTAR realtors sold 1,433 homes,” says LSTAR 2021 president, Jack Lane. “However, year-to-date sales are at an all-time high. At the end of May, there have been 5,175 sales, up 63.9 per cent over the same period last year.”

The average home price in the region in May was pegged at $630,998, a 42.6 increase compared to May 2020 and a 56.0 jump over May 2019 prices.

In London proper, the average April home price came in at $629,715, up 37.5 per cent from a year ago and 50.0 over May 2019. That said, it’s a slight dip from the April 2021 average price for the city, which was $642,222.

Broken down by neighbourhoods, the May average price in London East was $502,608. In London North it was $741,983, and London South (which also includes data from the city’s west end) reported an average price of $655,662.

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The overall inventory figure for the region, which shows how long it would take to liquidate the existing housing supply in the area at the current rate of sales activity, remained at 0.6 months ― its lowest level in the last decade.

“Combined with the high demand, the lack of housing supply is pushing the sales-to-new-listings ratio up, creating a sellers’ market with multiple offers for many listings and numerous properties sold over the asking price,” Lane adds.

“Nonetheless, it’s essential for consumers to understand that each home is unique and its sale price can vary based on its location, type, and features,” he emphasizes.

The single-family home maintains its place as the most popular housing type sold, with 937 sales across the LSTAR region in May.