The local housing market continued strong in May 2015, with total sales up 6.8% over the previous year. "In fact, May 2015 is the best May on record since 2007," says Carl Vandergoot, President of the London and St. Thomas Association of REALTORS®. He adds, "We can thank job growth, stable mortgage rates and affordable home prices for what is turning out to be a very robust market in our area." 861 detached homes and 194 condos sold last month, when a total of 1,055 homes exchanged hands.
Listings were down 3.7% and inventory – active listings end of period – were also down 2.7%. "Our supply of listings is still good and we would still characterize our market as balanced," says Vandergoot. "But, if supply continues to tighten up, we might find ourselves moving into a sellers market. My advice to any potential sellers sitting on the fence would be to take advantage of the current situation and list."
The market in London's Sister City of St. Thomas also had the best May since 2007, with 88 sales. The average price of a home in St. Thomas Year-to-Date stands at $218,916, up 9.5% from December 31, 2014.
The best-selling house style in LSTAR's jurisdiction for May 2015 was the two-storey, then the bungalow, followed by ranches, then townhouse condominiums, then high rise apartment condos. As of May 31, the average price for a detached home Year-to-Date stood at $281,564, up 4.1%, while the average price for a condo over the same period stood at $189,832, up 3.8%. Year-to-Date the average price of all homes sold through LSTAR's MLS® stood at $263,785, up 3.8%.
According to recent research conducted by the Altus Group, one job is created for every three real estate transactions and approximately $52,000 in ancillary spending is generated every time a house changes hands in Ontario. "A robust real estate market is good news for everybody," says Vandergoot. "It drives the economy, creating jobs and putting money in people's pockets at the same time as it puts a roof over their heads."