The average London-area price of a two-storey home — the most expensive kind — has topped the $500,000 mark for the first time, another sign of a sizzling seller’s market that’s running on a tear.

New figures released Tuesday show the London-St. Thomas market is still riding a hot streak, with April the fourth straight month of record sales.

Last month, 1,220 homes were sold in the area — up 14.2 per cent from last year, the London and St. Thomas Association of Realtors (LSTAR) reported.

So far this year sales are up a whopping 25 per cent compared to the first four months of 2016.

The average year-to-date sale price for all homes is also shooting up — at $325,286, it’s up 16.6 per cent from last year.

Out-of-town buyers, especially from the Toronto area, bidding wars and listings sold almost as soon as they hit the market, have become features in a market the likes of which few have seen before.

But industry observers say there’s still a lot of potential in the local market, because the average price in London-St. Thomas is still well below the Canadian average and just more than one-third of the Toronto average.

“It’s affordable, it’s accessible and it’s a great lifestyle,” said LSTAR president Jim Smith, adding the increase in sales and prices was inevitable because the London-area market offers a lot of value.

The average price in London-St. Thomas for a two-storey home hit $506,988 in April, eclipsing the half-million-dollar threshold for the first time.

Smith said outside interest, bidding wars and a tight supply of listings are still the major factors driving the market.

He said one home in London’s Westmount area was listed for $1.25 million on Monday and sold the same day to buyers from Mississauga.

The ripples from the red-hot Toronto market washing over London are also spilling into smaller centres, such as St. Thomas and Aylmer.

Smith noted the average price of the 97 homes sold in St. Thomas last month was $270,439, up 9.3 per cent from $247,455 just last month.

“They are getting bidding wars forcing the prices up, especially in the high end of the market,” he said.

The April sales in the London area included 971 detached homes, an increase of nearly 12 per cent over the previous year, and 249 condominium sales — up 25 per cent from 2016.

The number of new listings was down 8.6 per cent compared to April 2016, and the total number of homes on the market is down 46.4 per cent compared to one year ago.

Housing prices were a factor in boosting London’s economy last year, the value of whose goods and services produced rose by 2.6 per cent, said TD bank economist Derek Burleton, who was in London on Tuesday.

London’s supply of new housing is also in better shape, with a 45-per-cent increase in housing starts last year — well about the Toronto and Ontario averages.

Smith said he still believes London homes are affordable as long as mortgage rates stay low and the area unemployment rate, at six per cent, remains below the national and Ontario averages.

He noted that appraisers for mortgages aren’t pushing back, even in bidding war situations.

“The appraisers are coming in and confirming the value of the home at the selling price. What I am hearing is that this is the new norm,” said Smith.

hdaniszewski@postmedia.com

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Other average prices

Canada: $529,778

Toronto: $893,091

The numbers

APRIL AREA SALES

Units sold and average prices:

Two-storey: 287 ($506,988)

Bungalow: 119 ($286,981)

Ranch: 114 ($429,585)

Townhouse: 97 ($204,960)

High-rise condo: 69 ($200,007)

AVERAGE PRICE

$325,286 ($272,663 in April 2016)