Local housing market continues to cool off in June: LSTAR
The June numbers are in, and home prices in the London-St. Thomas region are cooling down.
According to a press release issued by the London and St. Thomas Association of Realtors (LSTAR) on Wednesday, 1,727 residential listings and 663 home sales were reported in the London-St. Thomas area in the month of June.
Meanwhile, the local housing supply increased from 1.7 months of inventory in May to 2.8 months of inventory in June.
Randy Pawlowski, LSTAR president said that while the number of new listings is the highest ever recorded by LSTAR in the month of June, the number of home sales is at its lowest point in the last 10 years.
“Our local market is cooling off rapidly, but home prices don’t follow suit as fast,” he said.
The average home price fell from $762,397 to $686,287 in June. But compared to the same period of time in 2021, that still represents an increase of 8.9 per cent.
A chart provided which illustrates the average benchmark price of a home throughout the London-St. Thomas area in the month of June. (Source: LSTAR)Pawlowski told CTV News London that this represents a "considerable drop" in such a short period of time, and that home price fluctuations have been "drastic" since the beginning of 2022.
According to Pawlowski, this decrease is in part due to rising interest rates.
“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."
He noted however that despite the rise in housing inventory, the current level is not enough. In a balanced market, housing inventory should sit at 3.5 or 4 months.
“To add to that we've we've added almost a month's worth of active inventory in that timeframe. so I think there's a number of factors affecting the markets right now. There's lots of turbulence out there. there's it's a very complex time," Pawlowski added.
The favorite type of residence for local home buyers continues to be the single-family home, as out of the 663 units sold last month, 493 were single-family homes.
In June, the average price for a single-family home in LSTAR’s jurisdiction was $736,158, the average price for a condo was $583,321, and for an apartment, the average price was $413,576.
“Even if it’s higher than in many cities from other Canadian provinces, LSTAR’s composite HPI benchmark price places our area among the most affordable in Ontario,” Pawlowski said.
The benchmark price of a home in Canada is $809,700.
— With files from CTV News London's Carlyle Fiset
CTVNews.ca Top Stories
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
RCMP not investigating possible foreign interference cases related to Chiu, Dong: Duheme
Canada's federal police force is not investigating any possible instances of foreign interference in the cases of former Conservative MP Kenny Chiu and Liberal-turned-Independent MP Han Dong, RCMP Commissioner Mike Duheme says.
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.
opinion Tom Mulcair: Trudeau's handling of Poilievre's 'wacko' House turfing a clear sign of Liberal desperation
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca