February 2018 home sales in London Ontario & area were down 32.8% , yet prices increased 10.8% as reported by The London and St Thomas Association of REALTORS® (LSTAR)* .
There were 1,103 active listings, (homes for sale), down 26.4% from this time last year. This is the lowest level of inventory for London Ontario real estate since 2008!
Although inventory remains low, average home sales price in London and St. Thomas continues to rise. The average February sales price in the region was $349,848, up 10.8% over February 2017. By geographic area, London South was $375,329, up 15.3% from last February. In London North, average home sales price was $424,959, up 14.5% compared to the previous year, while in London East, it was $286,770, an increase of 10.5% from February 2017. In St. Thomas, it was $307,383, up 27.4% over last February.
One of the other factors to look at is the sales-to-new listings ratio & according to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced housing market. In February, London and St. Thomas had a sales-to-new listings ratio of 69.5%, which CREA says represents conditions in the marketplace that favours sellers. It illustrates the high demand and low supply trend currently happening in the region.
St. Thomas saw a total of 52 homes sold in February, down 25.7% from the same period last year. When looking at inventory, there were 71 active listings, down 32.4% from last February.
What does all this mean?
We are seeing multiple offers on houses and condos in London Ontario, sometimes as many as 8 or more offers on a property and those properties selling for more than the asking price. A well-priced home in good condition in a good neighbourhood has been selling within 3 days!
According to a research report, one job is created for every three real estate transactions and approximately $53,000 in ancillary spending is generated every time a home changes hands in Ontario.
*These statistics are prepared for LSTAR by the Canadian Real Estate Association (CREA) and represent a data snapshot taken on March 1, 2018, based on reported sales activity between February 1 and 28, 2018.
The following chart is based on data taken from the CREA National MLS® Report for January 2018 (the latest CREA statistics available). It provides a snapshot of how average home prices in London and St. Thomas compare to other major Ontario and Canadian centres.