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.
