Real Estate Recap: May 12, 2021

Residential market analysis and a sampling of high- and low-priced listings in London

Photo: 2681 Torrey Pines Way is listed for sale at $1,899,000

THE SEEMINGLY RELENTLESS market appears to be taking a pause, so I thought I would take this moment to look back and see if we can learn anything about what comes next.

In the pandemic year (February 2020 to February 2021), the average price of home in London increased by $157,000. But in that same year, the Oakville-Milton market went up by $264,000, the GTA by $200,000, Barrie by $186,000 and Kitchener by $176,000. All of Ontario has experienced record-setting gains. 

Why? Ridiculously low interest rates, systemically low inventory and surging demand in a rising market from every sector ― professionals with excess savings, speculators, investors and those fearing they’d be priced out of the market.

What happens next? One day ― hopefully soon ― we’ll come out of lockdown, accelerate vaccinations and open up the economy. The effect that will have on our real estate market, on our economy and on our psyche is the new guessing game.

Keep this in mind: the inventory problem is not resolved and won’t be for years. Between 2016 and 2019, Ontario population growth doubled, adding 230,000 people each year. Housing growth simply didn’t keep up with population growth. To exacerbate this problem, the feds will increase immigration targets in the coming years to make up for the pandemic immigration loss.

To summarize, the demand surge is likely to continue but the homebuilding industry isn’t positioned to increase supply in the short or medium term.  Real estate appears to be a great place to invest!

Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or marcus@ateamlondon.ca.

London East

Low

Address: 204-1174 Hamilton Road
MLS number: 40067682
List price: $150,000
Days on market: 76
Size: 1 bedroom, 1 bathroom, 437 square feet
Listing agent: Bill Mcleod, Sales Representative, Nikki Morris, Sales Representative. Century 21 Heritage House Ltd. Brokerage

High

Address: 2801-505 Talbot Street
MLS number: 40086039
List price: $1,200,000
Days on market: 14 
Size: 3 bedrooms, 3 bathrooms, 2,235 square feet
Listing agent: Laura Carapella, Sales Representative, Planet Realty Inc.

London North

Low

Address: 98 Monmore Road
MLS number: 40109948
List price: $329,900
Days on market: 4
Size: 3 bedroom, 3 bathroom, 1,331 square feet
Listing agent: Jack W Lane, Broker, EXP Realty, Brokerage

High

Address: 2681 Torrey Pines Way
MLS number: 40105070
List price: $1,899,000
Days on market: 14
Size: 4 bedrooms, 4 bathrooms, 3,847 square feet
Listing agent: Jay Parkinson, Broker of Record, Stronghold Real Estate Inc., Brokerage

London South & West

Low

Address: 503-1104 Jalna Boulevard North
MLS number: 40106268
List price: $199,900
Days on market: 8
Size: 1 bedroom, 1 bathroom, 689 square feet
Listing agent: Diogo Barreira. Sales Representative, Century 21 First Canadian Corp., Brokerage

High

Address: 3074 Westminister Drive
MLS number: 400744617
List price: $2,700,000
Days on market: 18
Size: 4 bedrooms, 3 bathrooms, 3,683 square feet
Listing agent: Robert Ure, Sales Representative. Alexis Day, Sales Representative, Century 21 First Canadian Corp., Brokerage

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Disclaimer: London Inc. does not guarantee the accuracy of the statistical data on this page. The data does not represent the listings of any one agent or agency but represents the activity of the real estate community in the area. Any real estate agent’s ad appearing is separate from the statistical data provided, which is in no way a part of their advertisement.