Home sales in London Ontario, and the area were the second-best November since our local real estate board (LSTAR) started tracking data in 1978. The real estate market in London Ontario can be exasperating for buyers and a boom for sellers, here’s why.
The number of active listings 9homes for sale) continued to decrease. There were only 379 active listings at the end of November in LSTAR’s jurisdiction and only 0.5 months of inventory. “This value represents a new record low for our region’s inventory and means that, at the current sales pace, could liquidate the entire housing inventory in only two weeks,” Jack Lane, LSTAR President, stated.
The combination between the high demand and the meagre supply pushes the benchmark and average sales prices up. In November, the overall average home price for LSTAR was $673,995, while the LSTAR composite MLS® HPI benchmark price was set at $633,700.
The following table shows how November’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 specific area 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 distorted by the type of houses sold in that timeframe, the HPI benchmark price is accurate to gauge price trends.
|Area||November 2021 MLS® HPI Benchmark Price||November 2021 Average Price|
The single-family homes were on top of the local home buyers’ preferences, with 593 units sold in November. “Even though the single-family home remains the first choice of the local home buyers, it’s important to note that last month was our Association’s best November for condo and apartment sales, with 111 condo townhouses and 79 apartments exchanging hands,” Lane said.
The table below shows the November 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||November 2021||Change over November 2020|
|LSTAR Composite||$633,700||↑ 34.3%|
|LSTAR Single-Family||$680,400||↑ 33.7%|
|LSTAR One Storey||$624,400||↑ 36.2%|
|LSTAR Two Storey||$734,100||↑ 32.2%|
|LSTAR Townhouse||$518,100||↑ 40.3%|
|LSTAR Apartment||$370,400||↑ 31.5 %|
Despite increases to the HPI benchmark price and average sales price, homes in LSTAR’s jurisdiction remain relatively affordable compared to houses from some other prominent Ontario and Canadian centres.