Average London home price rises in May.
The London St. Thomas Association of Realtors (LSTAR) released their market report for May 2012.
Here is a snippet of the release;
The average price for a home in LSTAR’s jurisdiction Year to Date stands at $240,485, an increase of $15,458 since January 2012 — an increase of 6.9%
What does that mean? Did every home get a 6.9% raise? No. Did any home get a 6.9% raise? Probably not.
So what gives? Well, let’s look a little deeper.
The average price for a detached home over that same period stands at $257,023, up 5.3 %, while the average price for a condo stands at $168,852, down 3.4% from January.
Are you confused now? Overall prices are up 6.9% but detached homes are only up 5.3% and condos fell 3.4%. Both numbers are lower than 6.9%
The secret is in the mix. Average home prices take in all types of homes and detached home sales are up while condo sales ( typically less expensive) are down. Therefore average price goes up.
All this was reported in the price release but I bet many people didn’t see past the 6.9% increase. Some may even have run out to the hardware store and bought a for sale sign.
If you are considering selling your home, you need to know what homes in your neighbourhood are selling for or better yet, get a free market evaluation from a local Realtor