451 residential properties exchanged hands last month through the
Multiple Listing Service® (MLS®) System of the London and St. Thomas
Association of REALTORS® (LSTAR), 44% less than in November 2021. LSTAR
Members' home sales included 336 single family homes, 64 condo townhouses, and
36 apartments - all significantly down from a year ago.
"In the last two years, the local housing market's frenzy was
artificially fueled by the socio-economic climate of the pandemic. Now, that
the socio-economic conditions are completely different, the local housing
market is in correction mode," said Randy Pawlowski, 2022 LSTAR
President. "The market is especially affected by the Bank of
Canada's interest rate hikes, which intensify buyer reluctance and weaken
people's purchasing power," he added.
While residential transactions were at their lowest point in the
last decade, the number of new listings climbed to 875 in November, a new
record high for the eleventh month of the year. This increased the level of the
local housing inventory, which sits now at 3.3 months.
"The housing demand is still high in our area, and with the
increased levels of inventory, local Buyers have now more choices and time to
shop for new homes. However, the uncertain economic conditions are keeping many
prospective Buyers on the sidelines," Pawlowski observed.
Compared to a year ago, the average home price decreased, but
remained higher than the figures seen in 2020 and before. LSTAR's overall
average home price was $615,247 in November, 7.8% less than a year ago, but
13.8% higher than in November 2020. On the other hand, the composite MLS® Home
Price Index (HPI) Benchmark Price was $575,500 last month, 10% down from last
year, and also 9.8% lower than in November 2020.
