Housing experts say home prices could be starting to stabilize after the average price for a home in the London, Ont., and St Thomas area dropped from $824,000 in March to just under $740,000 in April.
The latest report from the London and St. Thomas Association of Realtors (LSTAR) shows that 877 homes were sold in April.
The month also had 1,069 listings come onto the local market, a slight decrease from the month before but the overall housing supply was up to 1.2 months of inventory in April from only 0.6 months in March.
The local housing supply bounced up to 1.2 months of inventory in April from only 0.6 months in March.
“These figures suggest a soft landing of the local real estate market. The April home sales are on par with the ten-year average and last month’s sales-to-new listings ratio of 54.5per cent signals that we’re trending towards a more balanced market,” said Randy Pawlowski, 2022 LSTAR President.
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Pawlowski said the levelling off is not a sign of a major decline.
“These single-digit decreases were actually expected after two consecutive interest rate hikes by the Bank of Canada and the Ontario Government’s decision to expand and increase the non-resident speculation tax,” Pawlowski said.
Out of the 877 units sold last month, 648 were single-family homes, 121 – condo townhouses, and 74 – apartments.
Pawlowski notes that the Home Price Index for apartments is the only property type that saw a 3.7 per cent increase while all other home types saw single-digit declines compared to the month before.
“In April, the average price for a single-family home in LSTAR’s jurisdiction sat at $840,415, that of a condo – at $618,049, and the overall average price for an apartment – at $476,283,” Pawlowski said.
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