The sale of homes in the region held steady last month, but according to the London and St. Thomas Association of Realtors (LSTAR), the number of active listings fell to the lowest levels seen in the month of March in the last decade.
The association released its monthly statistics Thursday, showing 769 homes were sold in London, St. Thomas and surrounding areas in March, down nearly 38 per cent from March 2017.
Although down from the same month last year, it should be noted that March 2017 was no ordinary month for home sales in the region. According to the association, that month set a record for best March results since they started tracking sales data 40 years ago.
What LSTAR refers to as “London and St. Thomas” in its data includes London, St. Thomas and other communities within Middlesex and Elgin counties.
Home sales in March are described by the association as “on par with the 10-year average,” but declining active listings means there was an impact on sales, said Jeff Nethercott, 2018 LSTAR president, in a statement.
“There were 1,192 Active Listings, down 20.4 per cent from this time last year and down 55.3 per cent from March 2016,” he said.
“Similar to February, the March inventory is the lowest level for the month in the last 10 years.”
Despite a decline in the number of homes for sale, the average sale price for a home in London and St. Thomas was up 8.6 per cent over March 2017, to $364,112.
Nethercott said the current situation facing the London and St. Thomas real-estate market — high demand and low supply — favours sellers. The sales-to-new listings ratio utilized by the Canadian Real Estate Association (CREA) pegged London and St. Thomas at 75.1 per cent.
“According to the Canadian Real Estate Association (CREA), a ratio between 40 per cent and 60 per cent is generally consistent with a balanced housing market,” said Nethercott.
According to the CREA’s latest average sale price figures released in February, the average sale price of a home in Canada was $481,664. Vancouver continues to be the most expensive market, with an average sale price of $1,027,298. The Fraser Valley, which is just outside Vancouver, was second with an average price of $751,959. Toronto was the third most expensive at $746,216.
A detailed rundown of LSTAR’s London and St. Thomas numbers for March 2018 can be found below.