Local Home Sales Sizzle, But Supply Dwindling

August 03, 2016

The hot streak continues for the London real estate market, with July sales almost setting another monthly record.
 

The London and St. Thomas Association of Realtors (LSTAR) said 990 homes sold last month, just shy of the 1,009 units sold in July 2007.
 

That follows a sales record for the month of June and the second-best May in the London-St. Thomas market.
 

“These kinds of numbers, month after month after month, speak to the vibrancy of our current market,” LSTAR president Stacey Evoy said Tuesday.
 

The big problem for realtors isn’t sales but supply.
 

The inventory of homes on the market continues to drop. It’s down 28.2 per cent from the same month last year.
 

The lack of listings has left home buyers scrambling and sparked lightning-quick sales and bidding wars.
 

“It’s no exaggeration to say that supply is extremely tight right now. That makes this an incredibly good time to list,” Evoy said.
 

The July sales total included 807 detached homes and 183 condos.
 

Year-to-date sales are up 8.2 per cent and the total dollar volume of all sales is up 12.3 per cent.
 

The average year-to-date price for a detached home is $295,769, up 4.8 per cent. The average price for a condo is $200,292, up 5.5 per cent. The average price of all homes sold in London-St. Thomas stood at $277,660, up five per cent.
 

That’s still well below the Canadian average home price of $482,305.
 

The months of strong home sales also are pumping money into the London-area economy.
 

A consultant group estimates each home sale generates $55,000 in spending on furniture, appliances, renovations and legal fees.
 

Using that formula, the July sales boosted the local economy by $54.5 million.




By Hank Daniszewski, The London Free Press
www.lfpress.com/2016/08/02/local-home-sales-sizzle-but-supply-dwindling