August home sales reached almost record territory last month, with 923 homes sold in London and St. Thomas, but dropped just short of the all-time high.
That figure represents the second-best August since the London and St. Thomas Association of Realtors (LSTAR) started tracking sales in 1978. It’s a 2.2 per cent jump over August 2017.
“We’re in a very strong sellers’ market. And it doesn’t look like it’s going to change anytime soon,” said Jeff Nethercott, president of the association representing more than 1,700 realtors in Middlesex and Elgin counties.
The record for August was set in 2016 when 999 homes changed hands.
Nethercott said demand continues to outpace supply, driving prices up because of multiple-bid situations, with homes tending to stay on the market for a relatively short period of time.
“These high numbers in August are just a driver of the unbalanced market and the sellers’ market we are in,” he noted. “We really don’t see any signs of the market changing. It is a great time for sellers in the market.”
Out-of-towners from the GTA and Kitchener-Waterloo are still a large portion of the buyers coming into our market, Nethercott said. The hitch is that, when they come to London, they don’t create a corresponding supply because the homes they are moving out of are far removed from the Forest City.
“Someone locally buys, they usually sell something,” Nethercott said. “It just hasn’t corrected itself.” Hence the imbalanced market that favours sellers.
“We continue to see a lack of supply or a lack of inventory.”
Inventory is at a 10-year-low, the association said in a news release. “In August, there were 1,535 active listings, down 12.6 per cent from this time last year and down 57.6 per cent from August 2013,” the association added.
Home sales last month in St. Thomas jumped 11.9 per cent compared to August 2017, with 66 homes changing hands.
BY THE NUMBERS
Average price of a home: $378,511 (up 18 per cent from August 2017)
Homes sold in London in August: 626 (up 1.6 per cent from last August)
Homes sold in St Thomas in August: 66 (up 11.9 per cent from last August)
Average price of a St. Thomas home: $295,262 (up 17.2 per cent from August 2017)