In March 2023, only 1,079 new residential listings were posted on
the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR).
This makes last month the March with the third lowest number of new listings in
the last decade.
The number of residential transactions for the month stood at 685,
thus marking the lowest number of home sales seen by LSTAR in March since 2014.
The overall sales-to-new listings ratio for the entire jurisdiction of LSTAR
jumped to 63.5%, and the inventory fell from 3 months in February to only 2 in
March.
"The market downturn caused by the rising borrowing costs has
created a window of opportunity for buyers to enter the market at a potentially
lower price point, but the lack of inventory remains a concern. The coming
months will be crucial in determining if the current trend continues, or if
there will be a rebound in the market," said 2023 LSTAR President Adam
Miller.
"Despite the ongoing economic uncertainty, the figures
recorded by LSTAR in March indicate a tightening of the local real estate
market, which is also reflected in the average and HPI benchmark prices
observed across the region," Miller added.
In March 2023, the average home price and composite MLS® Home Price
Index (HPI) Benchmark Price in the jurisdiction of LSTAR were significantly
lower compared to the same month in the previous year, by 20.6% and 23.4%
respectively. However, these figures were notably higher than those recorded in
2020 and earlier years. In addition, both metrics saw modest month-over-month
gains. The average home price for LSTAR in March 2023 was $653,611,
while the composite MLS® HPI Benchmark Price was $592,600
