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London

London-area realtors shatter another home sales record

A low housing inventory and jump in average price wasn't enough to cool the red-hot London-area real estate market last month.

According to figures from the London St. Thomas Association of Realtors (LSTAR), 824 homes changed hands, making February 2021 the best on record since the association began tracking data in 1978. Single-family homes were the most popular type sold last month, accounting for 589 of the 824 homes sold.

"This is the sixth consecutive month of record sales, demonstrating just how strong the housing marketplace is right now," said LSTAR President Jack Lane. “Because of the low supply and high demand, we continue to see increases in average sales price across the entire region."

The average home sale price in the London-area reached an all time high, climbing to $616,000 last month. That is roughly $8,600 higher than the average sale price of $607,431 in January. It was only last August when the region broke the $500,000 average price mark for the first time and it has continued to steadily rising ever since.

The lack of inventory is a major factor in the dramatic rise in housing prices, Lane noted.

"At the end of February, there were 0.6 months of inventory across the entire LSTAR area, lower than 0.8 months of inventory reported at the end of January," Lane said. "Out of the five main areas, St. Thomas had the lowest housing supply, with only 0.4 months of inventory, while Middlesex had the highest supply with 1.1 months."

Table based on data taken from the CREA National Price Map for January 2021. Table based on data taken from the CREA National Price Map for January 2021.

When compared to home in other major Ontario and Canadian markets, London-St. Thomas remain "relatively affordable," added Lane.

Data from the Canadian Real Estate Association puts the London region as the ninth most expensive market. The Greater Vancouver Area, Greater Toronto Area, and Fraser Valley hold the top three places on the list. They are followed by Hamilton-Burlington, Victoria, Kitchener-Waterloo, Ottawa, and Niagara. Calgary, Windsor-Essex, and Edmonton are currently experiencing lower housing costs than the London-area.

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