Local real estate market sees 'soft landing' in August: LSTAR

A home with a sold sign is seen in London, Ont. on Wednesday, April 13, 2022. (Sean Irvine / CTV News)

Fewer homes were sold in London-St. Thomas during the month of August, signaling what LSTAR calls a “soft landing” for the region.

According to the London-St. Thomas Association of Realtors (LSTAR), the number of homes sold in the region fell by 34.8 per cent in August when compared to August 2021. While the number of homes sold did increase over the previous month, LSTAR says the data “indicates a soft landing of the local real estate market.”

In August, 607 residential transactions took place, up by 93 units when compared to July, but down 324 sales when compared to August 2021.

"The softness seen over the last few months in the local real estate market was, undoubtedly, caused by the continuous rise in the mortgage interest rates, which has translated into higher borrowing costs," said 2022 LSTAR President Randy Pawlowski in a release.

A chart from the London-St. Thomas Association of Realtors illustrates the average price and benchmark price of homes across the region in August 2022. (Source: LSTAR)

The average price of a home in London-St. Thomas dropped slightly from $667,323 in July to $648,036 in August. Compared to August 2021, the new data still represents a 5.2 per cent increase.

“This represents a trend the majority of local markets are experiencing across the country, according to the Canadian Real Estate Association (CREA),” the release adds.

Single-family homes remained the top preference for home buyers with a total of 473 units sold in August, while apartments saw the largest gain in average price — up 5.4 per cent from this last time last year.

“When compared to other values recorded provincially and nationally, homes in our area continue to remain relatively affordable,” Pawlowski said.

The benchmark price of a home in Canada is $760,400.