Sales down Prices UP!
Last month a total of 627 homes exchanged hands, down 16.1% from the previous year, making August 2010 the third consecutive month in which the decline in market activity forecast by the Canadian Real Estate Association (CREA) and Canada Mortgage and Housing Corporation (CMHC) continued to erode the gains made last year. Erode but not erase: Year to Date home sales in the jurisdiction of the London and St. Thomas Association of REALTORS® still tops those of last year by 5.2%. “We absolutely knew this was going to happen,” explains Richard Thyssen, President of the London and St. Thomas Association of REALTORS®. “Last year’s bounty was the direct result of meeting pent-up demand on the way out of a downturn. It’s what happens under those circumstances. The fact is that the ten year average for home sales in August is 750.”
Year August Sales
“The good news is that we continue to see modest gains in house prices month over month,” says Thyssen. “That’s a sure sign that our market is in recovery.” The average price for a home Year to Date now stands at $227,794, 7% higher than last year at this time. This month, as in previous months and years, homes in LSTAR’s jurisdiction maintain their affordability compared to other major Ontario and Canadian centers. According to the CREA’s Major Market MLS® Statistical Survey for July 2010 (the most current available), the average price year-to-date for: London and St. Thomas -- $227,794
Year Average Price Total Residential
2010 YTD $227,794
The best-selling house style in LSTAR’s jurisdiction for the month of August was the two-storey, followed by the bungalow, the ranch and the townhouse condo. Home sales in London’s Sister City of St. Thomas numbered 55, a decline of 26.7% from last August. However, St. Thomas sales are up 15.9% for the year. The average price of a home in St. Thomas Year to Date stands at $184,652, up 0.6% over last year. According to a recent study prepared for the Canadian Real Estate Association by Altus Group Economic Consulting in Toronto, a total of $46,400 in ancillary expenditure is generated by the average housing transaction in Canada over a period of three years from the date of purchase. “That means that this month’s sales will generate $29,192,800.00 of economic activity over the next few years,” says Thyssen. “What comes around goes around.”