The MYLIE Group Real Estate Team shares the latest news for London, Ontario this August
Hello and Happy September!
The leaves are starting to change colour and the nights are getting cooler. Fall is on its way! With a change of season soon upon us, you may be thinking that now might be the right time to start looking for your perfect home.
If so, our Featured Listings just might contain your next dream home, and if you don’t see it there, we would love the chance to help you find that next (or first) perfect home!!
To help you make an informed buying or selling decision, here is some recent local real estate news for the London-St. Thomas area.
Continuous rise in mortgage interest rates causes a soft market.
The number of homes sold in the jurisdiction of the London and St. Thomas Association of REALTORS® (LSTAR) fell by 34.8% in August from the same month last year, but saw an increase over the previous month, which indicates a soft landing of the local real estate market. More specifically, 607 residential transactions were recorded last month by LSTAR’s MLS® System – 324 less than a year ago, but up by 93 units from July.
“The softness seen over the last few months in the local real estate market was, undoubtedly, caused by the continuous rise in the mortgage interest rates, which has translated into higher borrowing costs,” said 2022 LSTAR President Randy Pawlowski. “However, the sales-to-new listings ratio, which reflects the share of new listings out of the total number of home sales, increased from 41.8% in July to 56.7% in August, moving our market into a more balanced territory,” he added. “This is encouraging, as it could signal a bit more support for the home selling prices in the coming months.”
Ontario’s Benchmark Price was down 4% from July.
In August, LSTAR’s composite MLS® Home Price Index Benchmark Price was $599,500, down 4% from July. However, this value is still 0.5% higher than the figure recorded for August 2021. Similarly, LSTAR’s overall average home price dropped slightly from $667,323 in July to $648,036 in August. Compared to the same period last year, this figure is still 5.2% higher. This represents a trend the majority of local markets are experiencing across the country, according to the Canadian Real Estate Association (CREA).
“When looking to buy or sell a home, it’s essential to remember that each transaction is unique and does not always reflect the trends observed in the overall activity of the local marketplace,” Pawlowski said. “Especially in changing markets, the expertise and real-time data provided by your local REALTOR® can be invaluable resources.” “The single-family home remained on top of the local home buyers’ preferences – with 473 units sold – but apartments saw the largest gain in average price, increasing 5.4% over the same time a year ago,” 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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