A cool spring breeze
As higher rates take hold, home prices and sales volume cool. Plus a sampling of high- and low-priced real estate listings in London this week
THE RECKONING IS upon us ― or so it may seem. April month-end statistics are finally telling us the story of how the market is correcting itself, in a seemingly calm, Canadian way.
The numbers are as follows: average prices have dropped from about $820,000 one month ago to about $770,000. That 6 per cent decline in just 30 days is quite significant. The number of listings has gone up dramatically, due to a flood of new homes on the market along with reduced sales volume ― 25 per cent less than April 2021. Inventory has doubled year over year.
At this point, the London real estate market remains about 10 per cent higher than it was only four short months ago, at the end of 2021. The value decline in April was mild, erasing gains that are only 100 days old. There is still plenty of activity, with over 800 homes changing hands in the month. There are still buyers, but they now have options. Multiple offers still exist, but the froth is off the beer. Outlier offers that defied logic seem to have evaporated ― and that’s a healthy transition.
Buying opportunities will exist in this transitional market. Sellers who’ve already bought and must sell will be motivated like we’ve not seen in years. As mortgage rates inch upwards, speculators and multiple property owners may decide to sell some assets near this market high or need to sell as credit tightens.
If you purchased in the first 90 days of this year, fear not ― in the months and years to come your investment will pay off. If you’re trying to get into the market, timing the trough can be very tricky. If you’re prepared to weather the rising interest rate storm, buying your dream property when it comes available is always worthwhile.
I’m hopeful for everyone’s sake that this slight decline will stabilize in the month of May and bring us a long hot summer where the buyers and sellers have a more level playing field.
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: 24 Appel Street
MLS number: 40251635
List price: $199,900
Days on market: 1
Size: 1 bedroom, 1 bathroom, 900 square feet
Listing agent: Lynn Kongkham, Broker, Royal LePage Triland Realty
High
Address: 1980 Kilally Road
MLS number: 40247136
List price: $3,800,000
Days on market: 8
Size: 4 bedrooms, 2 bathrooms, 2,383 square feet
Listing agent: Brian Singh, Sales Representative, Century 21 First Canadian Corp.
London North
Low
Address: 1007-600 Grenfell Drive
MLS number: 4128621
List price: $377,900
Days on market: 53
Size: 1 bedroom, 1 bathroom, 700 square feet
Listing agent: Anil Verma, Sales Representative, Re/Max Escarpment Realty Inc.
High
Address: 583-591 Windermere Road
MLS number: 40249089
List price: $3,400,000
Days on market: 6
Size: 3 bedrooms, 3 bathrooms, 2,525 square feet
Listing agent: Glen Gordon, Broker of Record, Glen Gordon Real Estate Ltd.
London South & West
Low
Address: 305-1103 Jalna Boulevard
MLS number: 40238903
List price: $295,000
Days on market: 23
Size: 1 bedroom, 1 bathroom, 595 square feet
Listing agent: Harjit Mangat, Broker of Record, Global Realty Partners Inc.
High
Address: 1992 Kilgorman Way
MLS number: 40246933
List price: $3,800,000
Days on market: 1
Size: 6 bedrooms, 5 bathrooms, 4,799 square feet
Listing agent: Laima Barkauskas, Sales Representative, Royal LePage Triland Realty
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.