Wednesday, July 8, 2020

Home Sales Rebound in June

After two consecutive months of sharp declines caused by the COVID-19 pandemic, local home sales saw a strong rebound in June. The London and St. Thomas Association of REALTORS reported that 1,188 homes exchanged hands last month in its jurisdiction, up 13.8% from June 2019 and 11.7% more than two years ago.
"In fact, this makes last month the second best June for home sales since LSTAR began tracking data, back in 1978," pointed out Blair Campbell, 2020 LSTAR President. "In all LSTAR's main regions, June's volume of residential real estate transactions was absolutely remarkable: Middlesex County and Strathroy had their best June ever, with 99 and 39 home sales respectively; St. Thomas and Elgin County recorded their second best June, with 97 and 77 home sales respectively; and London's 748 home sales were right on par with the five-year average," he added.
Overall, the number of listings increased in June to 1,513, up 3.4% over June 2019, but the inventory - the number of active listings at month end - decreased to 1.3 months of inventory, its lowest value in the last ten years.
"The 78.5% sales-to-new listings ratio recorded last month demonstrates, once again, how firmly anchored our market is in Sellers' territory," Campbell explained.
"These figures might sound incredible, with all the social distancing rules and the open house prohibition in place. But, in reality, they show how desirable the properties in our area are and how quickly our Members embraced new technologies to serve their clients," Campbell emphasized.
The overall average home price rose to $473,998 in June, an increase of 17.8% over a year ago. This average sales price includes all housing types - from single detached homes to high-rise apartment condominiums. All five major areas across LSTAR's region witnessed gains in their average home sales price. The following table illustrates last month's average home prices by area and how they compare to the values recorded at the end of June 2019.
June 2020 Average Sale Price
Change over June 2019
Elgin County
↑ 32.6%
Middlesex County
↑ 9.8 %  
St. Thomas
↑ 8.5%
↑ 14.7%
↑ 17.8%

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