In a sign that the local housing market is cooling off, there was another drop in the average price of a home sold in the London area last month.
The London and St. Thomas Association of Realtors (LSTAR) reported Friday that 844 homes changed hands in May, with an average sale price of $762,397, down from April's $771,682 . While this marks third straight month of decline, LSTAR points out the average sale price is still more than 19 per cent higher than it was in May of 2021.
“One of the reasons why we are witnessing this level of stability is the change in population from migration and immigration. Only in the fourth quarter of 2021, Ontario’s population saw a net increase of 34,074 people. Many of these new Ontarians are now looking to buy homes they can afford in regions with good schools and hospitals. And, as it happens, our area checks all these boxes,” said LSTAR President Randy Pawlowski.
According to LSTAR, there were 1,835 residential listings posted in May, the highest figure for the month in the Association's history, and enough to raise the housing supply to 1.7 months of inventory, compared to April's 1.2 months. Pawlowski noted that is still below normal.
"While the months of inventory saw slight increases, they are still at lower-than-usual levels. Normally, a healthy inventory should sit at around 3.5 or 4 months," he said.
Average price by local area:
Central Elgin $825,705 London East $575,867 London North $890,455 London South $750,388 Middlesex Centre $1,270,684 St. Thomas $645,711 Strathroy-Caradoc $779,431