A jump in home prices due to a low inventory did little to deter homebuyers in September, the London area’s real estate association says.
In its latest report, the London and St. Thomas Association of Realtors (LSTAR) says 861 homes were sold last month, making it the second-best September in history since the local group began tracking sales data in 1978.
The strong resale numbers, however, come at a time in which the region, which besides London and St. Thomas also includes Strathroy and other parts of Elgin and Middlesex counties, is seeing fewer homes up for sale and escalating prices.
According to LSTAR’s report, there were 1,841 listings in September. That number isn’t only below the region’s 10-year average but it’s also 22.6 per cent lower compared to three years ago and almost 50 per cent lower than in 2014.
“What we’re experiencing with low inventory has had an impact on the average home sales price,” Earl Taylor, LSTAR’s president, said in a statement.
“Each of the five major areas in LSTAR’s jurisdiction saw an increase last month.”
In London, prices went up by 5.1 per cent and the average sale price sits at $410,930.
The biggest jump was seen in Elgin County, where the average sale price is now close to $427,000, a 20.4 per cent increase compared to the previous month.
The higher prices, however, haven’t cooled down the market, which remains the third most affordable among major markets in Canada and only surpassed by Edmonton and Windsor-Essex, LSTAR says.
“In September, home resales across the region were up 11.8 per cent, compared to the same month last year,” Taylor said.
“With three months left in the year, almost 8,000 homes have exchanged hands, which is up 3.6 per cent, compared to this period in 2018.”