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 July 2023!
Happy July Everyone!
Welcome to the July 2023 edition of The MYLIE Group’s Real Estate newsletter. Please check out our website’s community initiatives page to discover our recent endeavours, including the launch of an exciting community giveback program that invites you to join in! By working together we can make a positive difference in our local communities! Make sure to also check out our Featured Listings below, as your dream home might be waiting for you there. If you don’t find it, we would be thrilled to assist you in finding that perfect home, whether it’s your first or next one! Lastly, as we step into a new month, we bring you the latest trends, market updates, and expert advice on buying and selling properties. Stay informed and discover valuable insights to navigate the dynamic world of real estate in the London-St. Thomas and surrounding areas below. Let’s dive in!
Homes Selling at a Steady Pace in June!
The local housing market continued its steady streak in June, with 745 homes exchanging hands via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR). Housing supply increased from 1.7 months of inventory in May to 2.2 months of inventory in June, showing signs of market stabilization.
“The sales activity in June is consistent with the activity from the last several months,” said 2023 LSTAR President Adam Miller. “This happened despite another interest rate hike last month. Halfway through the year, the sales demonstrate the strong demand for homes across the region, which is very encouraging.” The table below highlights home sales, average home prices and benchmark prices in LSTAR’s jurisdiction over the past four months.
| March 2023 | April 2023 | May 2023 | June 2023 | |
|---|---|---|---|---|
| LSTAR Home Sales | 685 | 723 | 846 | 745 |
| LSTAR’s Overall Average Price | $653,611 | $664,149 | $682,561 | $675,923 |
| LSTAR’s Composite MLS® HPI Benchmark Price | $592,600 | $607,200 | $619,800 | $626,200 |
Average Price for Real Estate Goes Down Slightly in June From May
The overall sales-to-new listing ratio for LSTAR was 52.7% in June, slightly down from 60.6% in May. According to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced market.
“Although the data indicates a more stable marketplace, it’s important to remember that every home transaction is unique,” Miller said. “Depending on what the Bank of Canada decides to do during its July 12 announcement, your local REALTOR® can provide the necessary support on navigating the evolving environment, with real-time data and professional guidance.”
The June average home price was $675,923, slightly down from $682,561 in May. The composite MLS® Home Price Index (HPI) Benchmark Price was $626,200, up from $619,800 in May. The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.
The table below shows the June benchmark prices for all housing types within LSTAR’s jurisdiction, comparing changes from the previous month and three months ago.
| MLS® Home price Index Benchmark Prices | |||
|---|---|---|---|
| Benchmark Type | June 2023 | Change Over May 2023 | Change Over March 2023 |
| LSTAR Composite | $626,200 | ↑1.0% | ↑5.6% |
| LSTAR Single-Family | $674,300 | ↑1.1% | ↑5.3% |
| LSTAR One Storey | $610,300 | ↑0.5% | ↑5.7% |
| LSTAR Two Storey | $719,200 | ↑1.5% | ↑5.2% |
| LSTAR Townhouse | $520,300 | ↑1.3% | ↑4.8% |
| LSTAR Apartment | $392,800 | ↓0.3% | ↑12.8% |
In terms of housing preferences, the single-family home remained the top choice among local buyers, with 543 units sold, followed by 108 condo townhouses and 52 apartments.
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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