London and St Thomas Association of REALTORS® (LSTAR) announced 1,000 homes* were sold in July, down 1.8% over the same time last year. July 2018 marked the third best July for home resales since the Association began tracking sales data in 1978.
"The numbers tell us we’re experiencing a very healthy summer for home resales," said Jeff Nethercott, 2018 LSTAR President. "This is the third consecutive month of at least 1,000 homes being sold and the resale activity remains above the 10-year average. Inventory remains at a 10-year low, while we continue to see an increase in average sales price."
By geographic area, London East continues to make the largest gains, with the average July sales price at $288,648 up 14.3% from July 2017 and up 40.2% compared to July 2015. The average sales price in London North was $441,035 up 8.0% from July 2017 and up 35.9% compared to July 2015. Meanwhile, the average sales price in London South was $370,399, up 10.9 percent from July 2017 and up 32.2% from July 2015.
Overall, the average July sales price across London and St. Thomas was $360,068 up 10.3% from July 2017 and up 34.2% from July 2015. Going back further, it’s a 68.2% increase compared to the average sales price 10 years ago.
“One of the biggest trends in 2018 is the lack of inventory,” Nethercott said. “In July, there were 1,721 active listings, down 10.9% from this time last year and down 55% from July 2015. The sales-to-new listings ratio was 78.9%, 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). In London East, the sales-to-new listings ratio was 89.1%, while in London South it was 81%.”