Some encouraging news for potential home buyers as the latest housing numbers from the London and St. Thomas Association of Realtors prove the local market is cooling off rapidly.
LSTAR notes 663 homes exchanged hands in June, with 1,727 new listings entering the local market. This caused the local housing supply to increase from only 1.7 months of inventory in May to 2.8 months of inventory in June.
Randy Pawlowski, 2022 LSTAR President notes that while the number of new listings is the highest ever recorded by LSTAR in the month of June, the number of June home sales is at its lowest point in the last ten years. “Our local market is cooling off rapidly, but home prices don’t follow suit as fast,” he added.
“While the three consecutive interest rate hikes by the Bank of Canada succeeded to put some downward pressure on the home prices, the low housing supply is what keeps them relatively elevated. Even if the number of months of inventory increased to almost three, this value is still lower than normal” Pawlowski said.
In St. Thomas, the average sale price for a home in June 2022 was $576,680 and $616,591 in Central Elgin.
This, compared to May 2022, where the average sale price for a home in St. Thomas was $645,711 and $825,705 in Central Elgin.
If you take it one step further and compare prices from April, Central Elgin has seen an almost $300 thousand drop in 2 months from $900,732. St. Thomas is not as significant, dropping from $688,116 in April.
Written by: Kennedy Freeman
