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July 2021 London Ontario Real Estate Market Update

July 2021 London Ontario Real Estate Market Update

The London and St Thomas Association of REALTORS® (LSTAR) reported 993 homes sold last month in its jurisdiction.  LSTAR’s overall average sales price was $614,913 in July 2020, 26.6% over the same period last year. 

“July’s average sales price was slightly lower than the year-to-date value, which reflects the moderating trend seen across the country, reinforcing, at the same time, the idea that our local real estate market is starting to level off. However, the high demand for housing and the historically low inventory levels that we are currently experiencing still make for a robust housing market, where the Sellers have the upper hand,” said LSTAR 2021 President Jack Lane. 

The following table shows how last month’s average sales prices compare to the benchmark prices. The MLS® Home Price Index (HPI) benchmark price reflects the value of a “typical home” from a certain area as assigned by local home buyers based on various housing attributes. The average sales price is calculated by adding the sale prices for all the homes sold and dividing that total by the number of transactions. Since monthly averages may be skewed by the type of houses sold in that timeframe, the HPI benchmark price is a more accurate way to gauge price trends.

AreaJuly 2021 MLS® HPI Benchmark PriceJuly 2021 Average Price
London East$496,500$510,039
London North$684,600$699,496
London South$569,600$636,439
St. Thomas$505,400$495,409

Inventory illustrates how long it would take to liquidate existing housing inventories at the current rate of sales activity. At the end of July, there were 0.8 months of inventory across the entire LSTAR area, with the lowest inventory level seen in St. Thomas – at 0.5 months.

The single-family home remains on top of the local buyers’ preferences, with 749 sales in July. “Despite that, apartment sales seem to be making a great “come back”, with the MLS® apartment market activity having its second-best July ever,” Lane noted.

The table below shows the July benchmark prices for all housing types in LSTAR’s jurisdiction and how they stack up against the values from a year ago.

MLS® Home Price Index Benchmark Prices
Benchmark TypeJuly 2021Change over July 2020
LSTAR Composite$578,600↑ 33.3%
LSTAR Single-Family$629,900↑ 36.2%
LSTAR One Storey$579,000↑ 36.3%
LSTAR Two Storey$679,200↑ 36.2%
LSTAR Townhouse$467,100↑ 34.6%
LSTAR Apartment$301,100↑ 7.3 %

“All potential buyers and sellers should understand that each housing transaction is unique and does not necessarily reflect the activity across the entire marketplace,” Lane emphasized. “A property’s value depends on the housing type, its geographical location and features, as well as many other factors that REALTORS® are familiar with and can use to accurately evaluate it. That is why it’s always advisable to have a REALTOR® in your corner when you are thinking to either buy or sell a home,” he added. 

Despite all the increases seen in the HPI benchmark prices and average sales prices, homes in LSTAR’s jurisdiction appear to be 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 June 2021.

HPI Benchmark Home Prices Across Canada - June 2021

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and are designed and constantly upgraded with the latest real estate trends, how-tos, and what is for sale on MLS. Our primary focus is guiding home buyers and sellers to make good decisions. We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and boring, but we are dealing with hundreds of thousands of your hard-earned money. Would you rather be happy, excited and bored or unhappy, excited and make a poor choice? About Ty I am a Broker with Sutton Group Preferred Realty Inc., Brokerage and the team leader for The Envelope Real Estate Group, that's enough about me! You see, this is about you, you do not want to hear blah blah stuff about awards, designations, or that we walk older adults across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; success leaves clues!

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