London and St. Thomas Association of REALTORS® (LSTAR) announced a record 906 homes* were sold in October, up 11.9% over the same month last year. The number of home resales in October mark the best monthly total for October, since LSTAR began tracking data in 1978.
"It was a very strong October, with home resales high above the 10-year-average," said Jeff Nethercott, 2018 LSTAR President. "One of the trends we saw in October was a healthy increase in the number of new listings to the marketplace. October had 1,171 new listings, up 38.1% compared to October 2017. Average sales price continues to make steady gains as well all across the region."
Making the biggest gain was London East, where the average sales price was $311,954, up 25.5% from 2017 and up 62.7% compared to five years ago. London South (which includes data from the west side of the city) also had some robust gains, with an average sales price of $396,019 up 19.9% from 2017 and up 63.4% compared to five years ago.
Meanwhile, London North saw an average sales price of $447,036 up 10.7% from last October and up 46.0% compared to five years ago.
"Although inventory (what is called active listings) has seen a record low in 2018, October actually had a slight gain," Nethercott said. "Last month, there were 1,553 active listings in LSTAR’s jurisdiction, up 3.0% from October 2017. The sales-to-new listings ratio was 77.4%, which the Canadian Real Estate Association (CREA) says represents conditions in the marketplace that favour sellers (a ratio between 40% and 60% is generally consistent with a balanced market). Of the major geographic centres, London East had the highest sales-to-new listings ratio, at 81.4%."
In St. Thomas, the sales-to-new listings ratio was 78.3%, with a total of 65 homes sold in October, down 7.1% from the same time last year. The average home sales price in St. Thomas was $315,464 up 11.8% from October 2017 and up 46.8% compared to five years ago.
The following chart is based on data taken from the CREA National MLS® Report for September 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.
According to a research report 1, one job is created for every three real estate transactions and approximately $53,000 in ancillary spending is generated each time a home changes hands in Ontario. “The economy is firing on all cylinders, from the strong home market, regional job growth and low unemployment,” Nethercott said. "The business of real estate makes a substantial contribution across London and St. Thomas, with October resale activity generating potentially more than $48 million and helped create approximately 302 jobs. The crossover effect impacts all real estate entities, demonstrating how critical home sales are to our economy."
The London and St. Thomas Association of REALTORS® (LSTAR) exists to provide its REALTOR® Members with the support and tools they need to succeed in their profession. LSTAR is one of Canada’s 15 largest real estate associations, representing over 1,700 REALTORS® working in Middlesex and Elgin Counties, a trading area of 500,000 residents. LSTAR adheres to a Quality of Life philosophy, supporting growth that fosters economic vitality, provides housing opportunities, respects the environment and builds good communities and safe neighbourhoods and is a proud participant in the REALTORS Care Foundation’s Every REALTOR™ Campaign.
*These statistics are prepared for LSTAR by the Canadian Real Estate Association (CREA) and represent a data snapshot taken on November 1, 2018, based on processed home sales activity between October 1 and 31, 2018.
1 Economic Impacts of MLS® System Home Sales and Purchases in Canada and the Provinces, Altus Group Consulting, 2013.