On the House: ‘Unbridled desperation’ drives average home price to almost 800k
With the average home price pushing $800k in January, the new year picks up where the last one left off. Plus, a sampling of high and low listings around the city
YOU DON’T WANT to hear what I have to say. This isn’t easy to share. We ended 2020 with an average price of about $600,000. We ended 2021 with average price of about $700,000. One month into the new year, after another 529 transactions, we ended January 2022 with an average price approaching $800,000 ($793,222 to be exact).
Economists predicted the London market would climb 10 per cent this year ― they’ve been proven correct, if not conservative.
I don’t believe this market could have been predicted. House purchases and pricing seems driven by unbridled desperation on behalf of buyers. Our real estate team is exhausted trying to keep pace with this market. Listings are sometimes attracting 25 and 35 offers.
“I don’t believe this market could have been predicted. House purchases and pricing seems driven by unbridled desperation on behalf of buyers”
Out-of-town buyers are once again having an outsized influence on the local London market. GTA buyers, usually being directed by their out-of-town agents, continue to see opportunity where London agents and their clients see exuberance no longer grounded in reason.
Londoners may not be able to keep up, but we must never forget the adage of our broker and my partner: a property is worth what a buyer is willing to pay.
A free market sets the price of real estate. Once a property generates 90 showings over a weeklong period ― and 22 of those buyers make an offer after deciding its right for them ― one of those has to come out on top. One of those buyers is more motivated and better financed than the rest. One of those buyers is setting the latest price for that house in our market. And on average, that price is about 12 per cent higher than it was a month ago.
An old central banker from an earlier era coined the phrase “irrational exuberance”. These transactions can still be explained by a disparity between supply and demand, but still, can we just catch our breath?
Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or [email protected].
London East
Low
Address: 211-1830 Dumont Street
MLS number: 40202271
List price: $199,900
Days on market: 8
Size: 2 bedroom, 1 bathroom, 648 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group-Select Realty Inc., Brokerage
High
Address: 151 Travelled Road
MLS number: 40194275
List price: $2,199,999
Days on market: 50
Size: 11 bedrooms, 5 bathrooms, 6,120 square feet
Listing agent: Geoff Mitchell, Sales Representative, Re/Max Centre City Realty Inc., Brokerage
London North
Low
Address: 208-1600 Adelaide Street North
MLS number: 40203316
List price: $319,900
Days on market: 4
Size: 1 bedroom, 1 bathroom, 700 square feet
Listing agent: Shari Lynn Fulmer, Broker, Peak Professionals Realty Inc.
High
Address: 2344 Humberside Common
MLS number: 40203426
List price: $1,599,999
Days on market: 1
Size: 5 bedrooms, 4 bathrooms, 4,100 square feet
Listing agent: Nasim Uddin, Sales Representative, StreetCity Realty Inc., Brokerage
London South & West
Low
Address: 303-1255 Commissioners Road West
MLS number: 40204838
List price: $349,900
Days on market: 1
Size: 2 bedroom, 1 bathroom, 1,300 square feet
Listing agent: Haley Geddes, Sales Representative, Century 21 First Canadian Corp., Brokerage
Address: 3862 Southwinds Drive
MLS number: 40193815
List price: $4,277,000
Days on market: 33
Size: 4 bedrooms, 5 bathrooms, 5,210 square feet
Listing agent: Michael Reis, Sales Representative, Prime Real Estate Brokerage
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.