The London and St. Thomas Association of REALTORS® (LSTAR) announced 824 homes exchanged hands in February, achieving another monthly record for residential sales. Sales were up more than 19% compared to the same time a year ago, marking the best results ever for February since the Association began tracking data in 1978.
Why?
Because of the low supply and high demand, we continue to see increases in average sales price across the entire region.
The following table shows last month’s MLS® Home Price Index (HPI) benchmark prices by area and how they compare to the average sales prices. The HPI benchmark price reflects the value of a “typical home” assigned by buyers in a specific area based on various housing attributes. In contrast, the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold.
| Area | February 2021 MLS® HPI Benchmark Price | February 2021 Average Price |
|---|---|---|
| Elgin | $524,200 | $609,234 |
| London East | $464,800 | $457,746 |
| London North | $652,100 | $710,269 |
| London South | $527,000 | $651,945 |
| Middlesex | $793,900 | $777,509 |
| St. Thomas | $440,300 | $548,524 |
| Strathroy | $632,000 | $586,564 |
| LSTAR | $536,500 | $616,065 |
It’s essential to note average sales price includes all housing types, from two-storey detached homes to high-rise apartment condominiums. The HPI benchmark price helps gauge trends over time because averages may fluctuate by changes in the mix of sales activity from one month to the next.
Inventory is an essential measure of the balance between sales and the supply of listings, illustrating how long it would take to liquidate existing inventories at the current sales activity rate.
At the end of February 2021, there were 0.6 months of inventory across the entire LSTAR area, lower than 0.8 months of inventory reported at the end of January. Out of the five central regions, St. Thomas had the lowest housing supply, with only 0.4 months of inventory, while Middlesex had the highest supply with 1.1 months.
Another critical measure is the sales-to-new listings ratio. In February, the rate was 83.3% for LSTAR. A balance between 40% and 60% is generally consistent with a balanced market, demonstrating how robust the marketplace is. For those interested in selling their home, it’s an opportune time!
Single-family homes were the most popular housing type sold in February, with 589 sales. The table below shows the February benchmark prices for all housing types and how they stack up against the values from a year ago.
| MLS® Home Price Index Benchmark Prices | ||
|---|---|---|
| Benchmark Type | February 2021 | Change over February 2020 |
| LSTAR Composite | $536,500 | ↑ 30.5% |
| LSTAR Single-Family | $591,600 | ↑ 36.3% |
| LSTAR One Storey | $514,400 | ↑ 27.8% |
| LSTAR Two Storey | $669,100 | ↑ 42.3% |
| LSTAR Townhouse | $387,700 | ↑ 14.6% |
| LSTAR Apartment | $296,700 | ↑ 6.4% |
Despite the increases, homes in LSTAR’s jurisdiction remain relatively affordable compared to houses from some other major Ontario and Canadian centres. The following table is based on data taken from the CREA National Price Map for January 2021.
