Another Record Month for Home Sales

Posted by Brian Van Bart on Wednesday, December 4th, 2019 at 1:41pm

For the second month in a row, LSTAR's home resales achieved a new record, with 752 homesexchanging hands in November. It's the best November ever, since the Association began tracking data in 1978.

"We had another solid month, demonstrating the robust marketplace all across the region," said Earl Taylor, 2019 LSTAR President. "There have been 9,658 home resales year to date, which is up 3.2% compared to the same period in 2018, and we're on course to surpass last year's total sales."

The sales-to-new listings ratio in LSTAR's jurisdiction was 90.7%, which the Canadian Real Estate Association (CREA) says favours sellers. A ratio between 40% and 60% is generally consistent with a balanced market. A ratio below 40% tends to favour buyers, while a ratio higher than 60% indicates marketplace conditions favouring sellers, according to CREA.

"Several regions saw sales-to-new listings ratios above 100%, including London East (105.6%) and Strathroy (107.1%),” Taylor said. "We're still experiencing low inventory levels, which also continues to impact the average home sales price in all regions."

Overall, the average home price was $416,116, up 10.6% compared to November 2018.

AreaNovember Average Sale Price
Elgin County $417,206
London $426,887
Middlesex County $514,016
St. Thomas $327,731
Strathroy $400,727
LSTAR $416,116

Looking at London’s three main geographic areas, the average home price in London East was $357,796, up 18.6% from last November. In London South (which includes data from the west side of the city), the average home sales price was $424,900, up 12.2% compared to the previous year, while London North saw an increase of 1.9% over last November, with an average home sales price of $493,896.

The following chart is based on data taken from the CREA National Price Map for October 2019 (the latest CREA statistics available). It provides a snapshot of how home prices in London and St. Thomas compare to some other major Ontario and Canadian centres.

Average home prices in Canada at the end of October 2019

According to a research report2, a total of $67,425 in ancillary expenditures is generated by the average housing transaction in Ontario over a period of three years from the date of purchase. "Looking at the November home resales, that means potentially generating more than $50 million right back into the local economy," Taylor said. "The business of residential real estate impacts all facets of our community, from professional services, such as legal and appraisal entities, to retail, as well as local contractors and tradespeople."

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