JUNE MARKET SHOWS STEADY GROWTH IN HOUSING PRICES

In June 2024, the real estate market in our region saw significant fluctuations in activity, with 678 homes exchanging hands, according to the latest MLS® statistics of the London St. Thomas Association of REALTORS® (LSTAR). The average price of a home in the region was $671,309. The number of new listings in June was 1,510. We remain optimistic that the anticipated rate cuts by the Bank of Canada will stimulate the real estate market over the summer months.

Central Elgin’s average price increased to $822,389, while London East saw a rise to $530,031. London North experienced a slight decrease in average price to $753,575, and Middlesex Centre had a substantial increase to $1,164,378. These figures indicate a dynamic market with varying trends across different areas.

LSTAR Chair Kathy Amess commented on these trends, stating, “The market dynamics in our region continue to show resilience and adaptability. The slight increases in benchmark prices across most areas reflect a steady demand for properties.” She also noted, “While some areas have seen fluctuations, the overall market remains strong, providing opportunities for both buyers and sellers.”

The table below displays June’s average prices and MLS® HPI Benchmark Prices in LSTAR’s main regions supplied by the Canadian Real Estate Association (CREA).

Area

June 2024 MLS®
HPI Benchmark Price

June 2024
Average Price

Central Elgin $637,700 $822,389
London East $500,400 $530,031
London North $719,500 $753,575
London South $621,700 $673,495
Middlesex Centre $857,400 $1,164,378
St. Thomas $560,100 $565,596
Strathroy-Caradoc $795,300 $678,981
LSTAR $617,600 $671,309

The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.

The following table displays June’s benchmark prices for all housing types within LSTAR’s jurisdiction and shows how they compare with those recorded in the previous month and three months ago. Kathy Amess, Chair of LSTAR: “The recent trends in benchmark prices reflect a dynamic market, with notable increases in certain property types, particularly townhouses and two-storey homes, indicating strong demand in these segments”.

MLS® Home Price Index Benchmark Prices

Benchmark Type June 2024 Change Over May 2024 Change Over
March 2024
LSTAR Composite $617,600 ↑1.7% ↑1.6%
LSTAR Single-Family $664,700 ↑1.7% ↑1.8%
LSTAR One Storey $595,800 ↓0.1% ↑1.6%
LSTAR Two Storey $716,800 ↑2.8% ↑2.0%
LSTAR Townhouse $516,800 ↑3.2% ↑2.3%
LSTAR Apartment $388,600 ↓1.0% ↓3.7%

“When compared to the prices recorded in other provincial and national centres, homes within LSTAR’s jurisdiction appear competitive for buyers, positioning the region as an attractive housing market,” Amess said.  Between May and June 2024, the MLS Home Price Index Benchmark Price for London St. Thomas, increased from $607,100 to $617,600. This represents a rise of $10,500 over the previous month. The chart below provided by CREA shows the most recent HPI benchmark prices.