London Ontario Real Estate Sales up 33.4% in May 2017

A whopping 1,539 homes were sold in London Ontario in May 2017, an increase of 33.4% over the same period last year as announced by the London and St Thomas Association of REALTORS® (LSTAR) and is the highest monthly home sales total ever recorded, since LSTAR began tracking data in 1978*.

This year, year-to-date home sales are already 27% ahead of 2016!

In May, a total of 1,209 detached homes were sold, an increase of 28.6% over the previous year, while there were 330 condominium sales, up 54.2% from 2016. The average sales price across London and St. Thomas was $344,815 down 0.6% from the previous month. The average year-to-date sales price was $330,890 up 18.6% from the 2016 average home price of $279,057.

As well, in May, there were 1,985 listings, up 15.5% from the same time in 2016. The year-to-date sales are outpacing last year by 27.0%, with a total of 5,307 homes sold. St. Thomas also had a very healthy May, with a total of 115 homes sold, down 0.9% from the same time last year. The average home price in St. Thomas was $259,491 down 4.0% from the previous month.

The best-selling house style in May continues to be the two-storey, followed by the bungalow and ranch. I have broken these down when searching for homes in London Ontario on MLS.

The average price for a detached home in May was $372,163 down 0.1% from the previous month, while the average price for a condominium was $244,619 down 1.4% from the previous month.

House Style Units Sold Average Price
2 storey 408 $484,877
Bungalow 227 $278,216
Ranch 173 $406,440
Townhouse 154 $212,592
High rise apt. condo 106 $232,806

The following chart is based on data taken from the Canadian Real Estate Association’s (CREA) National MLS® Report for April 2017 (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.

May 2017 real estate market London Ontario

Why Overpay For London Ontario Real Estate?

Over the past 3 months, we have seen a sellers’ market in London Ontario, which is great for those selling their house or condo in London Ontario and in some cases, not great for buyers.

Overpaying for a London Ontario Home

Jim Rohn wrote: “The pain of discipline weighs ounces, the pain of regret weighs tons!”

With some homes receiving 7-15 offers that have no conditions and some homes selling 12-18% over the asking price, is the ‘winning’ offer prudent?

I have been in several of those offer situations, have won some and some say ‘lost some’, but my clients can’t lose something they never had. My client and I do a threshold price and stick to it, we try to keep the emotion out of it and avoid one of the biggest motivators in the world, “fear of loss”.

A threshold price is one where you can be confident that you are offering a fair price and confident that in the future, if the market does take a down turn, your financial world will not be turned upside down.

Speculation is dreaming and though we read about the money 5% of speculators make, we very seldom here about the other 95% of speculators who lose. It may not be in the short term, but long term, history has a habit of repeating itself.

I have taken the liberty of rearranging one of Warren Buffet’s beliefs and changing the word stock to property: “It is far better to buy a wonderful property at a fair price than a fair property at a wonderful price.”