Buckle up, borrowers
It’s a harsh new reality for mortgage borrowers who’ve become accustomed to the record low interest rates and deep lender discounts. Plus, high- and low-priced real estate listings around town this week
DEADLINES ARE FORCING me to write this update minutes before we hear the news regarding an increase in the Bank of Canada lending rate. This rate change will be the most significant event to affect housing in this country this month.
Common wisdom is to expect a 75-basis-point hike [Editor’s note: The Bank of Canada hiked interest rates by a full percentage point]. I’ve spoken before about the importance of weighing the burden of increased borrowing costs against the possible savings from declining house prices we’re currently experiencing.
Today’s rise in borrowing costs will likely be the most significant this summer, assuming inflation begins to tame. Housing, fuel costs and used car prices are all tempering over the last few weeks, so there’s reason for hope.
“A period of stabilized interest rates is necessary for confidence to once again surface for buyers. The future must be somewhat predictable for buyers to have the confidence in real estate values required to make purchases”
Given higher rates are now being baked into our economy, the days of virtual zero borrowing costs are behind us. “Normal” conditions are sure to follow, for banks, for borrowers and, most significantly, for buyers and sellers. A period of stabilized interest rates is necessary for confidence to once again surface for buyers. The future must be somewhat predictable for buyers to have the confidence in real estate values required to make purchases.
We are all hungry for escape this summer, with many families in transition after two years of Covid turmoil. Airports are full, camps are bursting, the beaches are packed. Kids are moving up in grades, changing schools, socializing and planning for the adjustment that comes in September. Real estate is no longer the focus of everyone’s attention as it was for much of the pandemic.
So, where does this leave us during these hot and heady days of summer? If the real estate market was a fine lager, not only is the froth gone, but the beer is warm, stale and 20 per cent of it was spilled, with recent property buyers left to clean up the mess off the floor, and no mop in site.
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: 103-1176 Hamilton Road
MLS number: 40256828
List price: $179,900
Days on market: 62
Size: 1 bedroom, 1 bathroom, 505 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group Select Realty Inc., Brokerage
High
Address: 1745 Kilally Road
MLS number: 40284410
List price: $3,500,000
Days on market: 18
Size: 3 bedrooms, 4 bathrooms, 4,700 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group-Select Realty Inc. Brokerage
London North
Low
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.
High
Address: 40 Sir Robert Place
MLS number: 40266200
List price: $4,580,000
Days on market: 1
Size: 5 bedrooms, 4 bathrooms, 7,650 square feet
Listing agent: Kim Mullan, Broker, Sutton Group-Select Realty Inc. Brokerage
London South & West
Low
Address: 100-198 Springbank Drive
MLS number: 40255158
List price: $225,000
Days on market: 66
Size: 2 bedroom, 1 bathroom, 1,000 square feet
Listing agent: Karen Greason , Broker, Re/Max Centre City Realty Inc., Brokerage
High
Address: 3944 Southwinds Drive
MLS number: 40275086
List price: $4,298,000
Days on market: 28
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.