London and St. Thomas Association of REALTORS® (LSTAR) has released its market update for September 2018. Here is our summary. On the top line a 776 homes were sold in September 2018. This is a drop of 6.1%from last year. The marketplace is still experience low inventory.
President of LSTAR offered the following comments: “All year we’ve been managing the challenges of low supply and it continues to impact home resales. What we did experience was a large increase in the average price for resale activity. In September, the average sales price was $386,520, up 21.0% compared to a year ago, and up 57.9%, compared to just five years ago.”
Breakdown By Region
London North
- Average sales price was $498,138
- Increase of 28.1% from 2017
- Increase 70.5% compared to five years ago
London South
- Average sales price of $385,635
- Increase of 18.0% from 2017
- Increase of 48.8% compared to five years ago
London East
- Average sales price of $302,452
- Increase of 10% from 2017
- Increase of 51.4% compared to five years ago
- Second time in 10 years that London East had an average sales price above $300,000
St Thomas
- Average home sales price of $321,473
- Increase of 20.2% from September 2017
- Increase of 69.9% compared to five years ago
- Highest average sales price St. Thomas has experienced in the past 10 years
Average Sale Prices Across Canada
According to a research report1, 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. “It is critical to understand the huge economic impact the business of real estate makes across the entire region and beyond,” Nethercott said. “The September resale activity has generated potentially more than $41 million and helped create approximately 258 jobs, affecting every facet of real estate, from retailers to contractors, and manufacturers. We cannot underestimate the contributions this profession delivers to the community.”