The MYLIE Group Real Estate Team shares the latest real estate sales news. Follow along to learn more about real estate sales in London, Ontario in February 2023!
Happy March Everyone!
Welcome to the March 2023 edition of The MYLIE Group’s Real Estate newsletter. Make sure to 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!!
With tax season in full swing and Spring just around the corner (we hope!), we feature two informative articles. The first offers valuable tips to homeowners on potential deductions to keep in mind, while the second emphasizes the importance of spring home maintenance, including gutter cleaning, roof inspections, and HVAC maintenance. Additionally, as the spring market approaches, we provide an overview of the latest trends, notable sales, and upcoming developments in London-St. Thomas area’s dynamic real estate scene below.
761 New listings entered the market
In February 2023, the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR) recorded only 436 residential transactions, thus marking the lowest number of February home sales seen by LSTAR since 1995. Despite the sluggish sales, 761 new listings entered the market during the same time frame, bringing the number of active listings to 1,320 by month-end. The overall sales-to-new listings ratio for the entire jurisdiction of LSTAR was 57.3%.
Compared to February 2022, both the overall average home price and the composite MLS® Home Price Index (HPI) Benchmark Price were significantly lower, down 24.2% and 25.1%, respectively. Despite this, both metrics saw a modest month-over-month growth. LSTAR’s overall average home price was $621,912 last month, while the composite MLS® HPI Benchmark Price came in at $583,500.
Interest rates have peaked leaving buyers more optimistic!
“With the Bank of Canada signalling that interest rates may have peaked and the consumer confidence index sitting at its highest level since September, I am feeling optimistic about the local housing market. The frantic bidding wars of the past seem to be now in our rearview mirror. And home buyers are getting more and more comfortable with taking on variable-rate mortgages, feeling encouraged by this much calmer environment. In these conditions, the spring market could surprise us,” said 2023 LSTAR President Adam Miller.
To further understand the market, the following table illustrates February’s average home prices in LSTAR’s main regions compared to the benchmark prices for those same areas.
In February, the single-family home continued to be the most desirable housing type in our area, with a total of 325 transactions recorded. Following closely behind was the condo townhouse, which saw 56 units exchanging hands. In contrast, the apartment lagged with only 34 units sold during the same period.
“Out of all house types, single-family homes were the ones that drove the month-over-month increases we noticed in the average and benchmark prices. Last month, the average price of a single-family home was $673,226 in our area, 25.2% lower than in February 2022, but also 5.6% higher than in January 2023. In addition, its MLS® HPI benchmark price was 4% higher than in the previous month,” Miller observed.
Providing a comprehensive overview of the benchmark prices for all housing types in LSTAR jurisdiction, the following table presents the figures for February 2023. This data allows for a direct comparison with the benchmark prices from the preceding years of 2022 and 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 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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