LSTAR Reports March Sales Drop Amid Uncertainties
The London and St. Thomas Association of REALTORS® (LSTAR) reported a significant decline in sales activity for March 2025, with only 508 transactions, marking a 33.5% decrease from the previous year. New listings decreased by 11.0%, while active listings increased by 21.1%, indicating a growing inventory. The average price of homes in the region decreased slightly by 0.6% to $643,159. The sale to list price ratio remained close to previous years indicating sellers are still achieving near their asking prices.
LSTAR Chair Dale Marsh remarked, “The Canadian real estate market is facing a challenging environment due to various factors, such as U.S. tariffs and broader economic uncertainties. These uncertainties have clearly impacted consumer confidence, leading to the volatility we’re observing.” Despite interest rates being at acceptable levels, buyers are hesitant to make significant purchases, opting to wait and see how tariffs might affect their employment.
However, there are positive aspects to consider. The current market conditions may present opportunities for buyers who are prepared to act. With fewer buyers actively purchasing, there could be less competition for available properties, potentially leading to better deals. Additionally, some experts believe that once the economic uncertainties stabilize, the market could see a resurgence, making it a good time for buyers to plan and prepare for future investments. Overall, while the market is challenging, it also offers unique opportunities for those who are strategic and patient.
In March 2025, the MLS® Home Price Index showed varied trends across property types. The composite benchmark price was $614,300, down 1.3% from last month but up 1.0% from a year ago. Single-family homes were priced at $666,100, down 1.1% from last month but up 2.0% from a year ago. One-storey homes increased to $613,300, up 0.9% from last month and 4.6% from a year ago. Two-storey homes decreased to $710,900, down 2.3% from last month but up 1.2% from a year ago. Townhouses and apartments saw declines, with prices at $489,100 and $378,600 respectively, showing significant drops from both short-term and long-term comparisons.
According to a study1 by Altus Group, an average housing transaction in Ontario generated an average of $88,966 in spin-off spending per transaction from 2020 to 2022. These expenses include legal fees, appraisers, moving costs, new appliances, and home renovation expenses.
Employment resulting from home sales is also significant, according to the Altus study. Resale housing activity created an estimated 106,565 jobs annually in Ontario from 2020 to 2022. Jobs include manufacturing, construction, finance and insurance.
1_Economic Benefits Generated by Home Sales and Purchases Over MLS® Systems in Canada, Altus Group, 2023._
Board & Association Information
The London and St. Thomas Association of REALTORS® (LSTAR) is one of Canada’s largest real estate associations, representing over 2,300 REALTORS® from London, St. Thomas, Strathroy, Middlesex County, & Elgin County. Guided by a ten-member Board of Directors and administered by a team of professional staff specialists, LSTAR strives to deliver excellent service to its Members, including not only its core service, the MLS® system, but also Arbitration, Education, Professional Standards, Communications, and Government and Community Relations. It is nationally recognized as a leader in technological innovation, political action and community service. As members of the Canadian Real Estate Association, LSTAR members may use the REALTOR® trademark, which identifies them as real estate professionals governed by a high standard of professional service and a strict Code of Ethics, committed to providing the best possible service to their clients and customers. The Association operates the local Multiple Listing Service® (MLS®), a co-operative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties for sale. Advertisements of local MLS® property listings and information about the services provided by a REALTOR® can be found at www.REALTOR.ca. More information about LSTAR is available at www.lstar.ca
LONDON & ST. THOMAS ASSOCIATION OF REALTORS®
For more information,
please contact:
(519) 641-1400
info@lstar.ca
Dale Marsh
