Thursday, March 5, 2020

London Area Home Sales Remain at Peak Levels



Last month, local residential real estate transactions remained at peak levels, with 740 homes trading hands in LSTAR's jurisdiction - only 22 less than three years ago, when the Association had its best February sales ever.
"Overall, home sales took a leap over the previous month - from 568 to 740, which signals an early start of a busy spring market," said 2020 LSTAR President Blair Campbell.
Compared to a year ago, the local residential sales activity saw a 23.7% increase, while the overall average home price experienced a 13% surge, rising to $445,535 in February.
"Even though the number of LSTAR new listings grew to 1,034, which is almost on par with the 10-year average, the number of active listings at month end was still much lower than normal. This reflects the strong demand for residential properties in our area," stated Campbell.
Inventory is another important measure of the balance between sales and the supply of listings. This shows how long it would take to liquidate existing inventories at the current rate of sales activity. At the end of February 2020, there were only 1.8 months of inventory across the entire LSTAR district - the lowest level in the last ten years.
"Looking at the home sales activity in LSTAR's five main regions, it's interesting to see that three of them - Elgin County, Middlesex County and Strathroy - had their second best February ever. London witnessed its third best February with 488 home sales, while St. Thomas set a new absolute record for February home sales, with 68," Campbell noted.