The number of residential sales in June 2022 in London, Ontario, the area declined to its lowest level since 2012, and home prices dropped about 7.8% from May 2022! However, the sky is not falling for clear-headed buyers and sellers!
The value of homes is relative to what a buyer is willing to pay, and where I see the trouble is with overpriced listings on MLS, this is where the price drop is. Homes priced correctly are selling within seven days and usually for full price. Ahhh, the supply and demand law is in place; in May 2022, there were 1.7 months of inventory versus 2.8 months in June!
Yes, interest rate fears are valid but the real culprit in the current market is more homes on the market and home buyers have many options when it becomes a buyers market.
The following table shows how June’s average home sales prices in LSTAR’s main regions compare to the benchmark prices for the same areas.
|Area||June 2022 MLS® HPI Benchmark Price||June 2022 Average Price|
In June 2022, 663 homes were sold, 493 were single-family, 82 townhouse or townhome condos sold and 58 apartment condos sold!
In June, the average price for a single-family home was $736,158, townhouses and townhomes $583,321, and apartment condos at $413,576.
The following table shows the June 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||June 2022||Change over June 2021|
|LSTAR Composite||$648,500||↑ 10.1%|
|LSTAR Single-Family||$689,000||↑ 9.1%|
|LSTAR One Storey||$626,900||↑ 9.7%|
|LSTAR Two Storey||$731,500||↑ 8.9%|
|LSTAR Townhouse||$575,800||↑ 16.4%|
|LSTAR Apartment||$425,900||↑ 10.6%|