April's real estate figures appear to show that the London-area market may be starting to balance.
According to statistics from the London St. Thomas Association of Realtors (LSTAR), 877 properties were sold in the area last month, 172 less than last month's number. The region's housing supply jumped up to 1.2 months of inventory in April from just 0.6 months in March.
"These figures suggest a soft landing of the local real estate market," said 2022 LSTAR President Randy Pawlowski. "The April home sales are on par with the ten-year average, and last month's sales-to-new listings ratio of 54.5 per cent signals that we're trending towards a more balanced market,"
Throughout April, the average home sale price was $771,682, a 6.4 per cent decrease compared to sale prices in March. Last month's figures also took a dip, ending an eight-month streak of steady increases.
Pawlowski said the decrease was expected after the Bank of Canada hiked interest rates twice within two months. He added the province's decision to expand and increase the foreign buyers' tax by 20 per cent also played a part in April's slightly cooler market.
Single-family homes remain the top choice for buyers, with 648 dwellings exchanging hands in April for an average sale price of $840,415. Meanwhile, condominium and townhome prices in the London area averaged $618,049. Apartments sold locally were purchased for an average of $476,283.
Prospective homebuyers across the province continue to fight their way into Ontario's hot real estate market. However, London remains one of the least expensive cities to buy a home in.
"Even if it's much higher than in many cities from Alberta and Saskatchewan, LSTAR's aggregate benchmark price places our area among the most affordable in Ontario," Pawloski added.
Last year, homes in LSTAR's jurisdiction sold for over $100,000 less, with the average price in April 2021 being $643,835.
