With interest rates rising and prices dropping, a time-limited opportunity rolls out for first-time homebuyers
CENTRAL BANKERS HAVE announced that fighting persistently high inflation is their primary focus in the coming year. Consequently, economists predict two more significant rate hikes of a half point in the summer months.
There has been some thought that the recent rate hikes were an attempt to calm the housing market valuation growth. With that goal being somewhat achieved, with an average drop of about 8 per cent in the London market, one could have assumed the central bank rates would level out. But with recent numbers showing unemployment at record lows as well, and the economy strongest among the G7 countries, the emphasis is no longer on house prices ― we’re now exclusively in an inflation battle.
Rising mortgage rates will have a continued effect on the housing market, depressing activity and ensuring the inventory of unsold homes keeps growing. As we’ve seen from the May numbers, the number of transactions has fallen by about one-third compared to a year ago. This is entirely due to a lack of buyers, given the inventory of homes has risen dramatically.
Affordability is once again the challenge for first-time home buyers. The bottom end of the market has seen the most dramatic decline in average prices ― but also the biggest drop in activity. The rising interest rates and stress tests for these homebuyers are having an oversized effect on the number of transactions for starter homes.
For these buyers, I have a strong message: Prices have fallen as much as 25 per cent in this category already (as opposed to the overall average of 8 per cent). Interest rates are expected to continue to rise, eating into affordability. Securing a mortgage commitment now, at today’s rates, and locking in for the duration of your home search is readily available.
Mortgage companies are now eager for your business. Now may be the most affordable time to buy and secure financing at low rates. The entry level market is now controlled by the buyers. Grab one of the affordable homes with an aggressively low offer engineered by your real estate professional. Don’t miss this opportunity.
Address: 61-2189 Dundas Street
MLS number: 40259706
List price: $180,000
Days on market: 30
Size: 2 bedroom, 1 bathroom, 600 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc. Brokerage
Address: 92 Sherwood Avenue
MLS number: 40258380
List price: $2,399,900
Days on market: 33
Size: 5 bedrooms, 62 bathrooms, 4,200 square feet
Listing agent: Sam Meddaoui, Sales Representative, and Iman Zabian, Sales Representative, Street City Realty Inc. Brokerage
Address: 1007-600 Grenfell Drive
MLS number: XH4128621
List price: $377,900
Days on market: 95
Size: 1 bedroom, 1 bathroom, 700 square feet
Listing agent: Anil Verma, Sales Representative, Re/Max Escarpment Realty Inc.
Address: 3-157 Windermere Road
MLS number: 40245977
List price: $2,950,000
Days on market: 51
Size: 4 bedrooms, 4 bathrooms, 3,915 square feet
Listing agent: Christine M. Crnich, Sales Representative, Oliver & Associates Real Estate Brokerage Inc.
London South & West
Address: 19-198 Springbank Drive
MLS number: 40253922
List price: $239,900
Days on market: 36
Size: 2 bedroom, 1 bathroom, 880 square feet
Listing agent: Tim Curgin, Sales Representative, and Cathy Curgin, Sales Representative, Sutton Group Preferred Realty Inc. Brokerage
Address: 1938 Kilgorman Way
MLS number: 40255312
List price: $3,995,000
Days on market: 42
Size: 5 bedrooms, 6 bathrooms, 4,285 square feet
Listing agent: Linda Joan Rice, 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.