London home sales sink in June as buyers take a wait-and-see approach. Plus, high- and low-priced real estate listings around town this week
THE JUNE NUMBERS tell the story that May was too afraid to share: The average price of a home dropped about 10 per cent in 30 days. In the same month, the volume of home sales dropped 39 per cent.
More than 400 transactions didn’t happen in the month, due to a lack of buyers and an unwillingness on behalf of sellers to accept lower offers. The month of May was simply too soon to reflect the market changes, mostly due to wishful thinking on behalf of sellers.
This softening, moderating, relaxing, correction (let the economists argue over the naming rights) that we encountered in June is far from over. On July 13, a further increase in borrowing costs will be announced, with a predicted 75 basis-point rate hike from the Bank of Canada, following the recent U.S. Federal Reserve move.
Inventory continues to grow as listings far outpace sales. One hundred days is all it took to transform from an unprecedented seller’s market to one that clearly now favours buyers.
For buyers, take the time to visit with a mortgage professional and do the math. A further drop in prices may not be advantageous when compared to the increased borrowing costs that are the direct result of “waiting out the market”. Consider that a 20 per cent increase in borrowing costs, on 80 per cent of your housing purchase, means your monthly interest expense will grow by 16 per cent! You will require an additional significant drop in housing prices to make up for the growth in borrowing costs.
As always, get expert opinions on your options and how best to “time the market”. This Covid market has tested the best of us, often causing us to be priced out of our dream homes. Now that competition has all but been eliminated, it may not be the time to sit on the sidelines thinking you’ve got it all figured out. Seek out help, talk it over and have a plan. There are going to be some great deals out there!
Address: 103-1176 Hamilton Road
MLS number: 40256828
List price: $179,900
Days on market: 55
Size: 1 bedroom, 1 bathroom, 505 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group Select Realty Inc., Brokerage
Address: 1745 Kilally Road
MLS number: 40284410
List price: $3,500,000
Days on market: 11
Size: 3 bedrooms, 4 bathrooms, 4,700 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group-Select Realty Inc. Brokerage
Address: 40-1238 Limberlost Road
MLS number: 40286758
List price: $349,000
Days on market: 7
Size: 3 bedroom, 2 bathroom, 2,115 square feet
Listing agent: Cody Tilbury, Broker, Team Glasser Real EState Brokerage Inc.
Address: 1539 Gainsborough Road
MLS number: 40286914
List price: $4,500,000
Days on market: 1
Size: 5 bedrooms, 4 bathrooms, 6,337 square feet
Listing agent: John H. Crosby, Sales Representative, Royal LePage Triland Realty
London South & West
Address: 100-198 Springbank Drive
MLS number: 40255158
List price: $225,000
Days on market: 59
Size: 2 bedroom, 1 bathroom, 1,000 square feet
Listing agent: Karen Greason , Broker, Re/Max Centre City Realty Inc., Brokerage
Address: 3944 Southwinds Drive
MLS number: 40275086
List price: $4,298,000
Days on market: 21
Size: 5 bedrooms, 5 bathrooms, 7,475 square feet
Listing agent: Bradley Gleed, Broker, and Heather Gunn, Broker, Re/Max Hallmark A Team
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.