The ongoing pandemic did nothing to stop the London area's real estate sector.
According to figures released Wednesday by the London St. Thomas Association of Realtors (LSTAR), more homes were sold last month than in any October since they started tracking statistics 42 years ago. October also saw a record high average sale price in the area. A total of 917 homes changed hands last month with an average sale price of $526,848. The average price represents a 27.5 per cent increase from October of 2019.
"The 917 residential transactions that took place in our jurisdiction represent the highest number of sales for the month of October since 1978, when the Association started tracking data," said LSTAR President Blair Campbell. "Out of these transactions, 690 happened within the City of London, which had its best October for home sales, as well."
Campbell added low interest rates and more people working from home have fueled a market of high demand and limited supply, which has pushed prices higher.
According to LSTAR's figures, the average sale prices for homes in different parts of the region, and the percentage increase over prices from October 2019, are as follows:
Elgin County $457,625 (13.7%) London $530,006 (28.5%) Middlesex County $728,590 (56.2%) St. Thomas $438,276 (27.5%) Strathroy $531,498 (28.2%)
"Comparing these figures with last month's numbers, one will notice a big jump in the average price for Middlesex County between September and October 2020," Campbell said. "The difference is largely explained by a handful of high-end sales in October. This example demonstrates perfectly why average prices are not the most reliable indicators of price trends. And this is exactly why LSTAR has decided to adopt and include The Canadian Real Estate Association's Home Price Index and benchmark price in its reports."
Figures also showed it rarely takes much time for a home to be on the market before it is sold. The median number of days that a home was on the market in London was eight, while in Middlesex County it was 17. The figure for Strathroy was 8.5 days, in Elgin County it was 14, and in St. Thomas it was eight days. All of the figures are lower than in October of last year.
