Wednesday, June 1, 2022

April Figures Suggest a Soft Landing of the Local Real Estate Market

 

In April 2022, 877 homes traded hands in the London-St. Thomas area and 1,609 new property listings were posted on the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). The local housing supply bounced up to 1.2 months of inventory in April from only 0.6 months in March.

“These figures suggest a soft landing of the local real estate market: the April home sales are on par with the ten-year average and last month's sales-to-new listings ratio of 54.5% signals that we’re trending towards a more balanced market,” said Randy Pawlowski, 2022 LSTAR President.

Within the same time frame, LSTAR's composite Home Price Index Benchmark Price saw a 4.5% month-over-month decline – from $774,200 in March to $739,700 in April. A similar difference was also seen in LSTAR's overall average home price, which decreased from $823,954 in March to $771,682 in April.

"There is nothing dramatic about the decline in home prices. These single-digit decreases were actually expected after two consecutive interest rate hikes by the Bank of Canada and the Ontario Government's decision to expand and increase the non-resident speculation tax," Pawlowski explained. 

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