Falling inventory hurts home sales, pushes up prices

London area home sales fell 15.9 per cent in September from August because of a shortage of homes to sell, and that shortage of inventory helped push up prices by 20 per cent from a year ago, the head of the London St. Thomas Association of Realtors (LSTAR) said.

In September, LSTAR reported 776 homes changed hands in London and St. Thomas, compared to a near-record August, when 923 homes were sold.

By the numbers

  • Homes sold in September: 776 (a drop of 6.1 per cent from September 2017)
  • Homes sold in August: 923
  • Average price of a home in September: $386,520
  • Active listings: 1,640 (lowest September inventory level in 10 years)

“Last month, there were 1,640 active listings in LSTAR’s jurisdiction, marking the lowest level of September inventory in the past 10 years,” said Jeff Nethercott, president of LSTAR.

However, September sales numbers are still above the 10-year average.

“We’re not overly concerned with the drop in sales between August and September,” Nethercott said.

The 776 homes sold in September represent a 6.1 per cent drop over September 2017.

“What we did experience was a large increase in the average price for resale activity,” Nethercott said in the LSTAR statement accompanying the September results. “In September, the average sales price was $386,520, up 21 per cent compared to a year ago, and up 57.9 per cent compared to just five years ago

Nethercott predicted the price of homes will continue to rise as long as the Forest City remains in a seller’s market, a condition that has existed for about three years this fall.

September was the second time in the last decade when the East London sales average rove above $300,000. Homes in East London sold for an average of $302,452, up 10 per cent from last September.

August was the first month the average home price in London rose above one major Canadian centre, Edmonton, where the average price was $370,349 compared to London’s $387,099. August is the most recent month for which there are cross-country comparison numbers.

lfpress.com
hurts home sales pushes up prices
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
3 views in july
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
An EE customer has said she was stalked by an ex-partner who worked at the firm, after he accessed her personal data without permission. Francesca Bonafede's number was switched to a new handset and her address and bank details were accessed. She said the company failed to take the data breach seriously and she had to involve police. EE "sincerely apologised" to Ms Bonafede, and said the employee no longer worked for the company. 'They didn't seem concerne...
Society
West Ham say they have handed over all of their evidence to the police after completing a "thorough and immediate" investigation into racist abuse shouted at Liverpool's Mohamed Salah. The incident happened during Monday's 1-1 draw at London Stadium. Egypt striker Salah, 26, was filmed on a mobile phone from a section of home supporters as he was taking a corner. "The club is unequivocal in its stance - such abuse will not be tolerated," West Ham said in a...
Society
A body seen in the wreckage of the plane carrying Cardiff City footballer Emiliano Sala and pilot David Ibbotson has been recovered, investigators said. Remotely operated Vehicles (ROVs) were used in ‘challenging conditions’ to pull the body out of the water ‘in as dignified a way as possible’ the Air Accidents Investigation Branch (AAIB) said on Wednesday night. The body is being taken to Portland to be passed over to the Dorset coroner for examination, t...
Society
The US president, who has repeatedly criticised the military alliance, would meet with heads of state in London, Nato secretary general Jens Stoltenberg announced on Wednesday. It would be Mr Trump's second visit to Britain since his election, having jetted in amid swathes of protest last July. I am pleased to announce that allies have agreed that the next meeting of Nato heads of state and government will take place in London in December 2019. The meeting...
Society
Rolf Harris was jailed for five years and nine months in 2014 but released on licence in May 2017 Credit: PA Officials are investigating a report that disgraced entertainer Rolf Harris walked onto the grounds of a primary school and waved at pupils. The convicted sex offender went onto the premises of Oldfield Primary School near his home in Bray, Maidenhead, to talk to a sculptor working in the grounds, the Daily Mirror reported. Harris, who was jailed fo...
Crime
Two men have been arrested on suspicion of murder after a teenager was stabbed to death. Police and London Ambulance Service were called to Wolsey Court, off Westbridge Road in Battersea, at 7.52pm on Tuesday following reports of a stabbing. A 19-year-old man was found with stab injuries and died at the scene at 8.36pm despite paramedics battling to save his life. The stabbing took place less than half a mile from Prince George's primary school, Thomas's B...
Society
The girl, who has been named Roman by nurses, was found at around 10pm on Thursday in the park in Roman Road in East Ham.  Police said Roman was wrapped in a white towel and placed in the shopping bag on the ground next to a bench in the small children's play park.  The baby was rushed to hospital where she was in a stable condition on Friday morning, the Metropolitan Police said.  Roman was discovered by grandmother-of-one Rima Zvaliauskiene, 50, just 100...
Society
The operation to recover the doomed plane carrying Emiliano Sala off Guernsey could be hampered by days of poor weather as the man brought in by the footballer's family to find him said he could be in the wreckage. The English Channel is being battered by torrential ran, 40mph winds and 10ft waves with the poor conditions set to continue - and worsen - until the end of the week, MailOnline can reveal today. The families of the £15million striker and his pi...
Society
Train passengers are being warned of major disruption after overhead electric wires were damaged near one of London’s busiest stations. Network Rail said services travelling to and from Liverpool Street could be cancelled or revised until 8am on Thursday. Wires between Liverpool Street and Bethnal Green, east London, were damaged, with the outage impacting Greater Anglia, London Overground, Stansted Express and Transport for London Rail services. Passenger...