Average home prices continue to fall for the London and St. Thomas area, with the local real estate association seeing June home sale at their lowest point in 10 years.
The London and St. Thomas Association of Realtors (LSTAR) reported Wednesday that the average price of a home in June decreased from $703,300 in May to $648,500.
Despite the price drop, LSTAR reports that the overall value of homes is still 10.1 per cent greater than the figures recorded in June of 2021.
“While the number of new listings is the highest ever recorded by LSTAR in the month of June, the number of June home sales is at its lowest point in the last ten years,” said Randy Pawlowski, 2022 LSTAR president.
“Our local market is cooling off rapidly, but home prices don’t follow suit as fast,” he added.
LSTAR’s overall average home price fell from $762,397 in May to $686,287 in June, but was still up 8.9 per cent compared to the same time last year.
In June, the average price for a single-family home in LSTAR’s jurisdiction stood at $736,158, $583,321 for a condo, and the overall average price for an apartment at $413,576.
Pawlowski notes that single-family homes remain the top choice for buyers, with 493 of the 663 units sold last night being single-family homes, 82 condos, and 58 apartment sales.
He notes that despite high prices, compared to other major cities in Ontario, London is considered more affordable than others.
“While the three consecutive interest rate hikes by the Bank of Canada succeeded in putting some downward pressure on the home prices, the low housing supply is what keeps them relatively elevated. Even if the number of months of inventory increased to almost three, this value is still lower than normal. In a balanced market, the inventory should sit at 3.5 or 4 months,” Pawlowski said.
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