The MYLIE Group Real Estate Team shares the latest news for London, Ontario this December for January 2023!
Happy 2023 Everyone!
We hope the New Year has started off on a positive note for everyone.
In this month’s newsletter, there is some insight into the anticipated Canadian Housing Market for 2023. Please also check out our Featured Listings, which just might contain your dream home. 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.
299 residential properties exchanged hands last month
299 residential properties exchanged hands last month in the jurisdiction of the London and St. Thomas Association of REALTORS® (LSTAR), bringing the total number of homes sold through the Association’s Multiple Listing Service® (MLS®) System in 2022 to 7,639.
“The last month of 2022 was the December with the lowest number of home sales recorded by LSTAR in the last decade. And, overall, 2022 saw the second lowest number of home sales since 2012,” said Randy Pawlowski, 2022 LSTAR President. “No one could have predicted that at the beginning of the year when the local housing market peaked, fuelled by the lingering pandemic and its socio-economic effects. Once the economy started to get back on track and the Bank of Canada began increasing its benchmark rate, the dynamics of the local housing market changed drastically.
One could say that, for LSTAR Members, 2022 came in as a roaring lion and went out like a lamb,” he added.
Residential transactions were at their second-lowest point in the last decade as new listings climb
While residential transactions were at their second-lowest point in the last decade, the number of new listings climbed to 14,126 – the second-highest yearly total during the same time frame. This brought the number of months of inventory to 3.8 as of December 31st.
“December’s sales-to-new listings ratio sat at 74.6, which shows that housing demand is still high in our area,” Pawlowski observed. “With the increased levels of inventory, local Buyers have now more choices and time to shop for new homes. However, the considerable loss of affordability triggered by the successive interest rate hikes continues to challenge local Buyers. And on the supply side, many homeowners are reluctant to list their properties, given the recent drops in average and HPI benchmark prices,” he noted.
Compared to a year ago, LSTAR’s average home price decreased, but remained higher than the figures seen in 2020 and before. Year-to-date, the overall average price of LSTAR sat at $724,583. In December, LSTAR’s overall average home price was $612,770, 14% lower than a year ago, but 10.5% higher than in December 2020. Similarly, the composite MLS® Home Price Index (HPI) Benchmark Price was $566,600 last month, 15.1% down from last year, but 17.1% higher than in December 2020.
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 at this time of interest rate and inventory number changes and we would be happy to delve into some of the variables with you.
Contact us via text or phone at 519.694.2426.
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