Average home sale prices in the London-are dipped slightly last month, which the region’s real estate expert said is because buyers have more choices.
The London St. Thomas Association of Realtors (LSTAR) released its data from November and although residential transactions were at their lowest point in 10 years, the number of new listings put on the market climbed to 875, a new record high for the eleventh month of the year according to the association.
“In the last two years, the local housing market’s frenzy was artificially fueled by the socio-economic climate of the pandemic. Now that the socio-economic conditions are completely different, the local housing market is in correction mode,” said LSTAR President Randy Pawlowski.
Several interest rate hikes made by the Bank of Canada this year have also helped correct the London-area’s real estate market somewhat by building buyer reluctance and weakening people’s purchasing power.
“The housing demand is still high in our area, and with the increased levels of inventory, local buyers have now more choices and time to shop for new homes. However, the uncertain economic conditions are keeping many prospective buyers on the sidelines,” said Pawlowski.
Average home prices decreased from $640,570 in October to $615,247. This price is also 7.8 per cent lower than November 2021’s average, but nearly 14 per cent higher than November 2020’s average sale price of $526,848.
While most housing types in the London-area have recorded year-over-year decreases in their average prices. Pawlowski said equity gains observed throughout most of the pandemic were not sustainable; however those who have owned their property for a while can buffer the new price corrections.
North London remains one of the most expensive areas in the city with properties selling for an average of $705,725 in November. Neighbourhoods in east London were significantly more affordable in comparison, averaging for $502,606. Looking a short distance outside of the Forest City, St. Thomas appears to be a viable option for prospective buyers with listings going for an average of $515,180 last month.
London appears to be a fairly inexpensive city to live in when looking at the costs nationally. The average benchmark price of a home in Canada at the start of November was around $726,000, with the Oakville-Milton region being the most costly at $1,247,200 and Winnipeg being the least expensive at $333,000.
The following chart shows House Price Index benchmark prices for November 2022. Graph courtesy of CREA.
