London area sees another increase in home sales

Home sales in the London region continue to rebound.

For a second straight month, the London and St. Thomas Association of Realtors (LSTAR) recorded an increase in the number of homes sold with 723 homes changing hands in April. That is up from 685 in March.

“Since the beginning of 2023 we’ve been noticing steady month-over-month increases in the number of home sales and prices, which indicate that the property demand and the housing supply issue are still there,” said 2023 LSTAR President Adam Miller. “Both of these are also demonstrated by the sales-to-new-listings ratio, which sky-rocketed in April, and by the dwindling housing inventory.”

The overall sales-to-new-listing ratio went from 63.5 per cent in March to 75 per cent in April. The inventory level dropped from a two months supply to only 1.8 months. St. Thomas had the lowest number of properties on the market out of the five regions the association represents with only one month of inventory available in April.

“The low inventory and the growing housing demand are putting upward pressure on the local average,” said Miller.

The average price of a home in the region went up by roughly $11,000 in April to $664,149. The month prior, the average price of a home was $653,611.

Single-family homes remained the favourite of buyers with 519 sold. That was followed by condos and townhouses with 100 units changing hands. Sixty-one apartments were also sold in April.

“Since the Bank of Canada pressed the pause button on interest rate hikes, single-family homes saw month-over-month gains in their benchmark prices,” said Miller. “When compared to other values logged provincially and nationally, homes in our area continue to remain relatively affordable.”

The Bank of Canada has held the interest rate the past few months after increasing it a quarter-point to 4.5 per cent in January.

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