The average sale price of a home in the London area has reached an all-time high.
The London and St Thomas Association of Realtors (LSTAR) said Wednesday that the average price of a home sold in January 2021 was $607,431, increasing by just over $52,000 from December 2020, and a 38 per cent increase from January 2020's average of $437,197.
"2021 came in like a lion for the LSTAR housing market, which continues to see very low inventories and record home prices in all its main areas," said 2021 LSTAR President Jack Lane.
LSTAR previously stated the low inventories and high demands are driving prices up.
"At the end of January, there were 0.8 months of inventory across the entire LSTAR area, slightly higher than in December, but still at one of the lowest levels in the past 10 years," Lane explained. "Out of the five main areas, St. Thomas had the lowest housing supply, with only 0.5 months of inventory, while London's and Strathroy's values were at 0.7 months, on par with the whole region," he added.
The report adds that 547 homes exchanged hands last month, making it the best January for sales since LSTAR began tracking data in 1978.
North London was the most expensive area for home purchases with an average price of $725,176, compared to east London with the lowest average sale prices of $423,686, a decrease of 2.4 per cent compared to December 2020.
In St. Thomas, numbers continue to trend upwards. The average sale price went up by 13.1 per cent from December to $498,372.
LSTAR says that a total of $73,250 in ancillary expenditures is generated by the average housing transaction in Ontario over a period of three years from the date of purchase.
"This means that our January home sales could translate into more than $40 million back into the local economy within the next few years," Lane said. "No one knows for sure where the local real estate market is headed this year, but the numbers we’ve seen in January 2021 make us feel optimistic about the future of the region."