‘Mix of stability and challenges’ in London area real estate market: LSTAR

A parade of for sale signs in a London suburb, Jan. 7, 2025 (Reta Ismail/CTV News London)

The real estate market in February 2025 has shown a mix of stability and challenges, according to the London and St. Thomas Association of Realtors (LSTAR).

Here’s a breakdown to the statistics:

• Sales activity saw a decline of 20.1 per cent compared to February 2024, with 353 properties sold.
• Despite this, the dollar volume of sales reached $249,279,351, reflecting an 18.2% decrease from the previous year.
• New listings were down by 8.0%, totaling 743, while active listings increased by 19.0% to 1,558.
• The sales to new listings ratio stood at 47.5, indicating a balanced market.
• The average price of single family detached homes in February 2025 was $706,174, a modest increase of 2.4% from February 2024.
• The median price, however, saw a slight decrease of 1.9%, settling at $645,000.
• The market’s inventory levels have improved, with months of inventory rising to 4.4, providing more options for buyers.

“External factors are beginning to shape the Canadian housing market in significant ways. U.S. tariffs on Canadian exports could increase inflation and reduce consumer confidence, further impacting the housing market. These factors, combined with supply chain disruptions and rising construction costs, suggest that the Canadian real estate market is navigating through a period of adjustment and adaptation” said LSTAR chair Dale Marsh.

Marsh said real estate market continues to undergo a period of adjustment.

“While sales activity has slowed, the increase in active listings and stable average prices are positive signs. Buyers now have more choices, and sellers are still seeing strong values for their properties. We remain optimistic about the market’s stability and adaptability in the coming months,” said Marsh.

Benchmark price

The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold.

The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.

In February , the MLS Home Price Index Benchmark Prices showed varied trends across different property types in Ontario.

• The LSTAR Composite price was $622,100, reflecting a 0.78 per cent increase from January 2025 and a 1.62 per cent rise from November 2024.
• Single-family homes were priced at $673,500, up by 1.28 per cent from January and 1.58 per cent from November.
• One-storey homes saw a notable increase to $608,100, with a 1.67 per cent rise from January and 1.35 per cent from November.
• Two-storey homes were priced at $728,000, showing a 1.06 per cent increase from January and 1.35 per cent from November.
• Townhouses were valued at $496,900, with a 0.95 per cent increase from both January and November. However, apartment prices dropped significantly to $379,600, down by 7.62 per cent from January, despite a 1.56 per cent increase from November.