Article content continued

In London, that translated to a price increase of 5.1 per cent from the same month last year, with the average sale price now sitting at $410,930.

The biggest jump was seen in Elgin County, where the average sale price is now close to $427,000, a 20.4 per cent increase compared to September 2018.

The higher prices, however, haven’t cooled down the market, which remains the third most affordable among major markets in Canada and surpassed by only Edmonton and Windsor-Essex, LSTAR says.

“In September, home resales across the region were up 11.8 per cent, compared to the same month last year,” Taylor said, adding so far this year almost 8,000 homes have exchanged hands, which is up 3.6 per cent compared to this period in 2018.

Instead, those higher prices are creating a race for the bottom end of the market, with lower-priced homes attracting several offers and bidding wars, realtors in London say.

While a house priced around $420,000 can still see two to six offers, cheaper homes are receiving more than that, said Melissa Laprise, a Century 21 realtor.

“In London and St. Thomas we’re still seeing a very hot market,” she said. “Especially in and around the average home sale price and lower, it’s very, very hot . . . and once you go down under to the $300,000 price range, you could be looking at much more offers.”

Those bidding wars are also resulting in homes going above asking price, which in some cases puts them out our the reach of first-time homebuyers, said Dwain Bodkin, also a London realtor.

“There’s a lack of listings on the market and there are just a lot of buyers,” he said.

“First-time buyers are in a predicament. They have to get in the market sooner or later, but unfortunately with not as many listings available in the market, it definite kills you.”

jjuha@postmedia.com

Twitter.com/JuhaatLFPress