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Real Estate Market Update – May 2018

May Home Sales Strong

LSTAR ( The London & St Thomas Association of realtors) has released its market update for May, 2018.

  • 1,171 homes were sold in May, down 24.4% over the same time last year

LSTAR offered the following comments: “We’re very encouraged by the sales in May, which represent the third best May results LSTAR has had. The homes sold are actually above the 10-year average, despite the ongoing challenge of low inventory in the marketplace. Similar to what’s happened each month this year, home prices continue to gradually increase across the region, as fewer homes are available for sale.”

Market Breakdown

Average May sales prices:

  • London and St. Thomas combined was $366,096
  • London South was $370,851 
  • London North was $451,556
  • London East was $291,359
  • St. Thomas was $288,723 

 

 

Low Inventory Continues To Slow Market

  • May had 1,643 active listings, down 7.7% from this time last year and down 44.6% from May 2016.
  • Sales-to-new listings ratio was 70.8%

Average Sales Prices Across Canada

The following chart is based on data taken from the CREA National MLS® Report for April 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 report1, 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. “The robust home sales in May provided a huge boost from the real estate space, generating potentially more than $62 million,” Nethercott said. “It’s a huge force in growing the local economy, helping to create approximately 390 jobs in May, further contributing to the economic engine of southwestern Ontario and beyond.”