The Real Estate Market London Ontario Quite Active October 2021
The London and St. Thomas Association of REALTORS® (LSTAR) announced another strong month for home sales in October, with 865 homes exchanging hands. Although down 7.1% compared to the same time a year ago, sales represent the second-highest number of homes sold in the month of October since 1978.
The Reason?
High demand and low supply continue to make a very competitive marketplace.
An important area to highlight is inventory, which shows how long it would take to liquidate existing inventories at the current rate of sales activity.
The low supply levels continue to affect the average sales prices. In October, the overall average home price for LSTAR was $672,328.
The following table shows how October’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 as perceived 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.
| Area | October 2021 MLS® HPI Benchmark Price | October 2021 Average Price |
|---|---|---|
| Central Elgin | $641,300 | $823,556 |
| London East | $533,800 | $518,997 |
| London North | $725,800 | $778,712 |
| London South | $605,300 | $648,206 |
| Middlesex Centre | $904,900 | $1,043,965 |
| St. Thomas | $522,800 | $593,517 |
| Strathroy-Caradoc | $717,400 | $714,795 |
| LSTAR | $613,900 | $672,328 |
The single-family home remains on top of the local buyers’ preferences, with 649 sales in October. The table below shows the October 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 | October 2021 | Change over October 2020 |
| LSTAR Composite | $613,900 | ↑ 33.3% |
| LSTAR Single-Family | $664,600 | ↑ 34.4% |
| LSTAR One Storey | $619,600 | ↑ 38.1% |
| LSTAR Two Storey | $709,700 | ↑ 32.1% |
| LSTAR Townhouse | $487,100 | ↑ 35.8% |
| LSTAR Apartment | $349,800 | ↑ 20.3 % |
Despite increases to the HPI benchmark price and average sales price, homes in LSTAR’s jurisdiction continue to remain 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 September 2021.
