London’s March real estate market shows rebound possible

Home sales in the London-area last month showed signs of a tightened market however, according to experts, this spring will be crucial in determining if the trend continues.

The latest data collected by the London St. Thomas Association of Realtors (LSTAR) shows 685 homes exchanged hands in March 2023, making it the third lowest March for home sales seen since 2014. Meanwhile, only 1,079 new residential listings were posted by the month’s end, pushing the sales-to-new listings ratio to 63.5 per cent, up marginally from February.

“The market downturn caused by the rising borrowing costs has created a window of opportunity for buyers to enter the market at a potentially lower price point, but the lack of inventory remains a concern,” said 2023 LSTAR President Adam Miller, who added the next several months will be key in establishing this trend, or if there will be a rebound in the market.

Last month, the average price of a home was $653,611, up approximately $31,000 from February 2023. LSTAR said prices remain significantly higher than what was recorded in 2020 and earlier years.

“Despite the ongoing economic uncertainty, the figures recorded by LSTAR in March indicate a tightening of the local real estate market,” said Miller, meaning that the difference between the highest bid and the offer is narrow.

Single-family homes remained the most sought after housing type with 497 transactions recorded. Condominiums and townhomes followed with 98 units sold, while just 57 apartments came off the market.

“While the average price of single-family homes experienced a year-over-year decline, they still fared better than other house types, with a decrease of only 19.5 per cent compared to March 2022,” said Miller. “Moreover, their average price remains 48 per cent higher than that of the third month of 2020.”

The most recent House Price Index benchmark prices for March 2023, provided by the Canadian Real Estate Association. (Graph via LSTAR)