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Closing out 2021, the average sale price for a home in the London and St. Thomas region shot past $700,000 in December — a first for the area that had only just surpassed the $500K benchmark in September of the previous year. 

London and surrounding areas have seen unprecedented growth across its residential real estate market since the start of the pandemic. Work-from-home, flexible scheduling, and remote learning has pushed city dwellers towards more spacious and less centralized areas, resulting in an influx of buyers and a shrinking of available inventory in our Forest City. 

This trend has seen small communities surrounding London such as Middlesex Center top the charts at an average sale price of $1,058,299 in December 2021. 

"The COVID-19 pandemic, which forced numerous people to work from home for most of this year, continued to fuel our local housing market, bringing the inventory levels to historic lows and pushing the home prices up," says LSTAR President Jack Lane.

A record year for condo and apartment sales

Rising single family home prices — now sitting at an average price of $771,235 — has also pushed buyers to turn to alternatives such as condominiums and apartments. 

"Both these house types saw a big jump in their benchmark and average prices this year. In December, the average price for a condo in LSTAR's jurisdiction was $594,271, while the overall average price for an apartment sat at $397,065,” LSTAR President Jack Lane noted. 


What does 2022 hold for the real estate market?

Despite residential sales seeing large increases to their average sale prices London and St. Thomas continues to remain an affordably attractive market compared to other Ontario cities. However, according to recent studies, Canadian home prices could see marked increases into 2022 — upwards of 9% — as city migration continues to increase amidst future COVID-19 surges and tightening supply. 


Locally, areas such as London North and Central Elgin are seeing prices slowly approaching an average of $1M having closed out 2021 sitting at $867,374 and $778,490 respectively. 

Sellers can expect markets to continue in their favour through 2022 as current reports point to at least another 10% increase to housing prices. “Price increases over the last couple of years have been high, but we don’t expect that to continue at the same pace,” Lane said, “We do expect to see an increase of 10 to 15 per cent.”

Even with current Omicron and variant scares slowing sellers from entering the market — a trend reminiscent of previous lockdown responses — Lane suggests that as infection rates taper into 2022 we can expect to see more sellers beginning to enter the market again, though demand will most likely match and surpass any marginal increase in inventory. 

Ready to sell in 2022? Let’s talk.

It's true — we're in a very hot sellers' market. However, selling smart is crucial than selling fast.

Everyone's situation is different and that's why we're here to help you navigate your situation to determine the best real estate path for you. If you think you're ready to get started crunching some numbers our realtors are here to answer your call and work with you today.

Give us a call at 226.400.6070 or visit homewealthreport.ca to find out how much your home might be worth in today's market.