Fourth Quarter & 2020 Year End Market Review

 

Quarter 4 & 2020 Market Review

What a year in Real Estate! Looking back to early March there was a lot of uncertainty about what this year would be. With the warmer weather and the gradual re-opening of the economy, the market saw record number of sales as we saw a transition of buyers who were leaving the city for year round living in more rural and traditionally cottage markets as working remote from home became normal. This trend continued into the fall and quarter 4 market.
Year over year we saw reduced inventory on the market with an increase in sales.

These both factored into the prices we saw in the market place and increases seen from 2019. Grand Bend non lakefront up 29.5% ... Bluewater Lakefront's up $23% ... Bluewater lakeside cottages up 10% and Port Franks area up 18%. Grand Bend lakefronts like Southcott / Oakwood & Beach O'Pines are statistically down in price due to the quality of some of the cottages sold affecting the price. The average price point for this market is still strong and holding steady on price.

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2020 - LSTAR's Second Best Year for Home Sales

Despite the COVID-19 pandemic, 2020 proved to be the second best year for home sales in the history of the London and St. Thomas Association of REALTORS® (LSTAR). In the entire jurisdiction of LSTAR, 9,976 homes traded hands last year, with 596 sales wrapping up 2020 in the month of December.

"This number of residential transactions make 2020's last month the best December on 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," said 2020 LSTAR President Blair Campbell.

"Globally, this year, people were forced to spend much more time in their homes with their families, which made them reevaluate their housing choices. 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," Campbell added.

The increased demand, coupled with an already low inventory, pushed the home prices up in all five main regions of LSTAR. The following table shows last month's benchmark prices by area and how they compare to the values recorded at the end of December 2019.

Area	December 2020 MLS® HPI Benchmark Price	Change over December 2019
Central Elgin	$473,000	↑ 27.3%
London East	$418,200	↑ 25.2%
London North	$589,600	↑ 20.8%
London South	$475,400	↑ 22.2%
Middlesex Centre	$725,300	↑ 20.1%
St. Thomas	$392,500	↑ 30.3%
Strathroy-Caradoc	$571,800	↑ 22.2%

"The HPI benchmark price is different than the average price of a home. This reflects the value of a 'typical home' as assigned by buyers from certain areas based on various housing attributes. Depending on how the features of the home you are considering match these standards, the property's value will be higher or lower than the benchmark price," Campbell explained.

In December 2020, the Aggregate Composite Benchmark price for the entire London-St. Thomas area was $483,900, while the overall LSTAR average price sat at $555,324.

Despite these notable price increases, the homes in our area continue to remain relatively affordable when compared to houses from some other major Ontario and Canadian centres. The following chart is based on data taken from the CREA National Price Map for November 2020.