The London St. Thomas Association of Realtors (LSTAR) is reporting a strong month of home sales in May, albeit not a record-breaking one.
According to stats released by LSTAR Thursday, there were 1,258 residential transactions last month, up 87.5 per cent from May 2020.
LSTAR credits the lower 2020 numbers to the real estate market experiencing a “pandemic-induced decline” at the time.
President Jack Lane says last month was the second-highest month of May for home sales on record, surpassed only by May 2017.
It marked the end of a string of record-setting monthly sales.
“The pandemic and the newly introduced mortgage stress test have made the home buying and selling processes complicated. In these conditions, if you’re either a buyer or a seller,” Lane said.
The average resale price of a London-area home dropped in May for the first time in more than a calendar year.
According to the London St. Thomas Association of Realtors (LSTAR), the average price last month was $636,053, down slightly from a historic high of $643,835 in April.
Single-family homes remain the most popular, with 937 sold in May.
The overall inventory figure — which shows how long it would take to liquidate the existing housing supply in our area at the current rate of sales activity — remained at 0.6 months, its lowest level in 10 years.
“Combined with the high demand, the lack of housing supply is pushing the sales-to-new listings ratio up, creating a sellers’ market with multiple offers for many listings and numerous properties sold over the asking price,” Lane said.
“It’s essential for consumers to understand that each home is unique and its sale price can vary based on its location, type, and features.”
LSTAR serves the London and St. Thomas area, which also includes Strathroy, as well as Middlesex and Oxford counties.