Real Estate Fundamentals Exposes Supply and Demand, the herd mentality and people jumping into the market at the wrong time.
I am not alarmed at the latest sales figures for April 2022 in the London Ontario area. The # 1 rule in real estate is supply and demand, you can argue location, location, location all day long but until the cows come home or the roosters come to roost, supply and demand rules!
Over the past two days, all we see in the news is house prices slowing down, interest rates rising, a shortage of affordable homes and on and on. Yes that may be true or not but history does repeat itself; what goes up, must come down, just the same as gravity in London Ontario is the same as London England, but in London Ontario, we say thank you and in England they say bollocks!
In my rhetoric, clear-thinking buyers and sellers of real estate understand fundamentals, below are the London Ontario area stats.
In April 2022, 877 homes traded hands in the London-St. Thomas area and 1,069 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.
The following table shows how April’s average home sales prices in LSTAR’s five main regions compare to the benchmark prices for the same areas.
| Area | April 2022 MLS® HPI Benchmark Price | April 2022 Average Price |
|---|---|---|
| Central Elgin | $773,000 | $900,732 |
| London East | $647,600 | $597,652 |
| London North | $863,900 | $874,712 |
| London South | $731,900 | $772,829 |
| Middlesex Centre | $1,076,700 | $1,192,683 |
| St. Thomas | $628,100 | $688,116 |
| Strathroy-Caradoc | $825,500 | $823,380 |
| LSTAR | $739,700 | $771,682 |
The following table shows the April benchmark prices for all housing types in LSTAR’s jurisdiction and how they measure up to the values from a year ago.
| MLS® Home Price Index Benchmark Prices | ||
|---|---|---|
| Benchmark Type | April 2022 | Change over April 2021 |
| LSTAR Composite | $739,700 | ↑ 25.1% |
| LSTAR Single-Family | $789,700 | ↑ 23.7% |
| LSTAR One Storey | $742,500 | ↑ 26.6% |
| LSTAR Two Storey | $838,300 | ↑ 21.8% |
| LSTAR Townhouse | $599,900 | ↑ 26.1% |
| LSTAR Apartment | $461,400 | ↑ 37.0% |
