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 August Everyone!
Welcome to the August 2023 edition of The MYLIE Group’s Real Estate Team newsletter. As we find ourselves in the midst of August, the summer months are swiftly passing by it seems. We hope you’re taking full advantage of this season and creating wonderful memories. Be sure to explore our Featured Listings page – your ideal home could be among them. If you don’t see it there, 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!
Interest rate barely makes a dent in July sales!
In July 2023, 640 homes were sold via the MLS® System of the London and St. Thomas Association of REALTORS® (LSTAR), 19.6% more than in the seventh month of last year. The local housing supply increased from 2.2 months of inventory in June to 2.9 months in July. During the same period, 1,333 new listings came on the market, up by 8.2% over 2022. “In July 2023, LSTAR’s overall sales-to-new-listings ratio sat at 48%, indicating a fairly balanced market,” said 2023 LSTAR President Adam Miller.
“The higher borrowing costs triggered by Bank of Canada’s latest hike in its benchmark interest rate barely put a dent in July’s home sales and prices,” Miller noted. “This speaks not only to the local market’s appeal and resilience, but also to the huge demand for housing sparked by the increased immigration, which, according to a recent study, reached unprecedented levels in the last twelve months,” he added.
July’s overall average home price came in at $668,821, slightly lower than in the previous month, but 1.7% higher than a year ago. LSTAR’s composite MLS® HPI Benchmark Price was $612,800, 2.1% down from June, but 6.1% up when compared to six months ago.
Average Price for Real Estate Goes Down Slightly in June From May
“While the average sales price is calculated by adding all the sale prices for all types of homes sold and dividing that sum by the total number of units sold, the HPI benchmark price reflects the value of a “typical home” as seen by the local buyers based on various housing features. Since averages may be skewed by only a handful of high-end sales recorded over one month, the HPI benchmark prices can better help us identify price trends,” Miller explained.
The table below shows the July benchmark prices for all housing types within LSTAR’s jurisdiction, comparing changes from the previous month and six months ago.
|MLS® Home price Index Benchmark Prices|
|Benchmark Type||July 2023||Change Over June 2023||Change Over March 2023|
|LSTAR One Storey||$594,000||↑2.7%||↑6.6%|
|LSTAR Two Storey||$702,500||↑2.3%||↑6.6%|
In terms of housing preferences, in July, the best-selling house style in LSTAR’s jurisdiction was the single-family home, with 471 units exchanging hands. Condominium townhouses ranked second, with 110 units sold, followed by apartments, with 51 units sold.
In July, the average price of a single-family home located in LSTAR’s jurisdiction stood at $734,234, while that of a condo townhouse was $546,569. The average price of an apartment sat at $383,647. “Despite London being identified as the most competitive housing market in Ontario, homes in LSTAR’s jurisdiction continue to maintain their affordability compared to other major Ontario and Canadian centers.” Miller said. The following chart shows the latest HPI benchmark prices, courtesy of CREA.
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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