August 5, 2020

LSTAR home sales set a new record in July, with 1,275 homes exchanging hands throughout the month in the Association's jurisdiction.

This was not only the best July for LSTAR, but also for London, which saw 856 residential real estate transactions, a number that is way above the values typically recorded during this summer month.

Overall, there were 1,408 new listings last month, on par with the 10-year average, but the inventory decreased to 1.1 months - its lowest value in the last decade.

These leaps in statistical values might sound unbelievable, especially now, in the middle of the COVID-19 pandemic. But they can  be explained, if one takes into account the strength of local real estate market at the beginning of this year and the pent-up demand created during the lockdown months.

The overall average home price increased to $484,884 in July, an increase of 19.6% over a year ago. This average sales price includes all housing types - from single detached homes to high-rise apartment condominiums.

Looking at London's three main geographic areas, London South saw the highest number of home sales last month (336) and the biggest price gain compared to July 2019.

The average home price in London East was $380,365, up 15.1% from the same time last year, while in London North increased also by 15.1% over the same period to $562,529. In London South - which also includes data from the west part of the City – the average home price was $499,448, up 16.1% over July 2019.

St. Thomas saw an average home price of $394,093, an increase of 20.1% from last July.

According to a report by the Canadian Real Estate Association, last month, in London, the median  number of days that a home was on the market was 10 - down from 14 days in July 2019. As compared to a year ago, in Elgin County, the median number of days spent by a home on the market was 21 – up from 20; in St. Thomas was 9 – down from 12; in Strathroy was 10 – down from 11; and in Middlesex County it was 13.5 – almost ten days less than in July 2019.

According to a research report, a total of $67,425 in ancillary expenditures is generated by the average housing transaction in Ontario over a period of three years from the date of purchase.