The London area real estate market budged only slightly over the dog days of summer last month.
According to recent figures from the London St. Thomas Association of Realtors (LSTAR), just 569 homes were sold across the region in August, down from 640 in July, and 745 in June.
"In August, the local real estate market experienced a lull, with home sales hitting their lowest point since 2014," said 2023 LSTAR Chair Adam Miller.
A total of 1,212 new listings went to market last month, a nine per cent decrease compared to July. This translates to about 3.4 months worth of inventory, up from 2.9 in July.
"Whether that was just a simple summer lull or a direct effect of the Bank of Canada's mid-July decision to raise interest rates and their messaging about the lingering above-target inflation, that remains to be determined by the real estate activity we’ll see in the next few months," Miller said.
Meanwhile, the average selling price for a home dipped to $663,663, only about $5,000 less than July's average sale price. Last month's recorded average is around 4.2 per cent higher than sale prices observed around the same time, last year.
Single-family homes in the area remained the most sought after properties for prospective buyers, with 427 sold at an average of $726,263 in August. Condominiums and townhouses came second with 86 units exchanging hands for around $519,970, followed by apartments, with 51 units sold for an average of $417,321.
“It’s interesting to note that condos, one-storey homes, and apartments saw the highest year-over-year price appreciation," said Miller. "That may be a reflection of the changing needs of an aging population."
While homes in the London area continue to appreciate, the region maintains its seat as more affordable when compared to other areas across the nation. The Oakville-Milton area holds the spot for the most expensive homes in Canada with a benchmark average of $1,331,000 in August. Winnipeg, Manitoba ranked as most affordable with an average of $345,700.
