Prices, supply, prices, supply
More of the same for the London’s residential real estate market, as high prices and low inventory persist
ACCORDING TO THE London and St. Thomas Association of Realtors (LSTAR), a total of 865 homes exchanged hands in its reporting region in October, an almost identical number to the month prior (September) and making it second-best October for home sales since LSTAR started tracking data in 1978. (In addition to London, the LSTAR catchment area also takes in Strathroy, St. Thomas and portions of Middlesex and Elgin counties.)
“During the fall season, the sales activity in LSTAR’s jurisdiction has been well above the 10-year average,” says Jack Lane, LSTAR 2021 president. “High demand and low supply continue to make this a very competitive marketplace.”
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As it has been for quite some time, the lack of available product continues to overshadow just about all other market factors. The inventory benchmark, which shows how long it would take to liquidate existing inventories at the current rate of sales activity, remains at historic lows.
“At the end of October, there were only 0.6 months of inventory, which is lower than the 0.9 months of inventory reported in the same period a year ago,” Lane says. “To put it in perspective, about four months of inventory would represent a balanced marketplace. Out of LSTAR’s main areas, St. Thomas and London North had the lowest housing supply, with only 0.4 months of inventory. Central Elgin had the highest supply with 1.4 months.”
London Inc.’s residential real estate analyst, Marcus Plowright, comments on record home valuations here
The low supply levels continue to impact average sales prices. In October, the overall average home price for the LSTAR region was $672,328. That compares to $641,822 last month, and $613,900 for the same period (October) a year prior.
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In the City of London proper, the average home price also jumped, to $652,359 in October compared to $644,773 in September. Compared to October 2021, the average London home price has jumped 23.2 per cent, and a whopping 131.5 per cent compared to the same period five years ago (2016).
Broken down by neighbourhoods, the September average price in London East was $518,997; in London North it was $778,712; and London South (which also includes data from the city’s west end) reported an average September price of $648,206.
The single-family home remains on top of the local buyers’ preferences, with 649 transactions in the region in October.