The MYLIE Group Real Estate Team shares the latest news for London, Ontario this June
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Here is some recent local real estate news for the London-St. Thomas area.
Ontario real estate supply sees an increase!
In June 2022, 1,727 new residential listings and 663 home sales were recorded in the London-St. Thomas area via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). The local housing supply increased from only 1.7 months of inventory in May to 2.8 months of inventory in June.
“While the number of new listings is the highest ever recorded by LSTAR in the month of June, the number of June home sales is at its lowest point in the last ten years,” said Randy Pawlowski, 2022 LSTAR President. “Our local market is cooling off rapidly, but home prices don’t follow suit as fast,” he added.
Ontario’s Benchmark Price was down 7.8% from May.
LSTAR’s composite MLS® Home Price Index Benchmark Price was down 7.8% from May, decreasing from $703,300 in May to $648,500 last month. However, this value is still 10.1% greater than the figure recorded in June 2021. Similarly, LSTAR’s overall average home price fell from $762,397 in May to $686,287 in June. Compared to the same period last year, this figure is still 8.9% higher.
“The favourite dwelling type of the local home buyers remains the single-family home: out of the 663 units sold last month, 493 were single-family homes,” Pawlowski explained. “The rest of the June transactions were comprised of 82 condo sales and 58 apartment sales,” he added.
In June, the average price for a single-family home in LSTAR’s jurisdiction stood at $736,158, that of a condo – at $583,321, and the overall average price for an apartment – at $413,576.
“While the three consecutive interest rate hikes by the Bank of Canada succeeded to put some downward pressure on the home prices, the low housing supply is what keeps them relatively elevated. Even if the number of months of inventory increased to almost three, this value is still lower than normal. In a balanced market, the inventory should sit at 3.5 or 4 months,” Pawlowski said.
As always, if you are thinking of building, selling or buying a home or an investment property, please give us a call. There are important details to know about the moving process in this time of interest rate and inventory number changes and we would be happy to delve into some of the variables with you. Let’s discuss how we can help you take advantage of the current market opportunities.
Contact us via text or phone at 519.694.2426.
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