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    February House Prices London Ontario & Area Up 30.5% Over 2020

    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.

    London Ontario Housing Market Recap February 2021

    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.

    HPI Benchmark Home Prices Across Canada - January 2021

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    Ty Lacroix

    Founder & Owner & Broker of Record of Sutton Group Envelope Real Estate Inc, That's all I can say about me! You see, this is about you, not me; you do not want to hear blah blah stuff about awards, designations or that we walk older people across the street, the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; you see, success leaves clues!

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