There were 1,835 new residential listings for sale posted on the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR), more than in any previous May in the Association’s history.
Sales, however, dropped with 844 homes being sold! May was somewhat early to reflect the change in the market from a seller’s market to a buyer’s market, with home prices experiencing a modest 4% decline.
June and July will expose the real estate market more clearly, not only with more homes for sale but with higher interest rates and higher fuel, food and living costs. I am not an economist, a mathematician or the tooth fairy, I feel the so-called 6-8% inflation rate is grossly understated.
A point to keep in mind is in the fourth quarter of 2021, Ontario’s population saw a net increase of 34,074 people. Many of these new Ontarians are now looking to buy homes they can afford in regions with good schools and hospitals. London Ontario and area real estate are still affordable ( see the charts below); we have excellent medical facilities and personnel, a lower crime rate and easy accessibility to the US and the GTA.
The following table shows how May’s average home sales prices in LSTAR’s central regions compare to the benchmark prices for the same areas.
|Area||May 2022 MLS® HPI Benchmark Price||May 2022 Average Price|
Of the 844 residential properties sold in May 2022, 635 were single-family homes, 105 were condo townhouses, and 65 were apartment condos. The average price for a single-family home in LSTAR’s jurisdiction was $818,977, townhouse condos $605,333, and apartment condos $465,364.
The following table shows the May 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 Type||May 2022||Change over May 2021|
|LSTAR Composite||$703,300||↑ 17.6%|
|LSTAR Single-Family||$749,100||↑ 17%|
|LSTAR One Storey||$681,800||↑ 17.6%|
|LSTAR Two Storey||$795,300||↑ 16.8%|
|LSTAR Townhouse||$609,700||↑ 22.5%|
|LSTAR Apartment||$473,400||↑ 19.4%|