Monday, August 8, 2022
The local housing market continued to cool off in July, with 514 homes exchanging hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). The housing supply made a steady gain from 2.8 months of inventory in June to 3.6 months of inventory in July, signaling movement toward a more balanced market.
"With rising interest rates, July saw home sales activity continue to slow down," said Randy Pawlowski, 2022 LSTAR President. "Inventory has increased, showing more signs of a balanced market. The 3.6 months of inventory in July is in line with the months of inventory recorded during the same month in 2014 and 2015."
While LSTAR's composite MLS® Home Price Index Benchmark Price of $624,400 was down 3.7% from June, this value is still 6.4% higher than the figure recorded for July 2021. Similarly, LSTAR's overall average home price fell slightly from $686,287 in June to $667,323 in July. Compared to the same period last year, this figure is still 7.1% higher.
This represents a trend the majority of local markets are experiencing across the country, according to CREA."It's also important to note that every home transaction is unique and does not represent activity across the entire marketplace," Pawlowski said. "When markets fluctuate, your local REALTOR® can help you navigate through the changing environment, with professional guidance and real-time data whether you're looking to buy or sell."
Wednesday, July 27, 2022
Tuesday, July 26, 2022
Monday, July 11, 2022
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.