After a wild year-long ride, our housing market is right back to where it started from. Here’s what we can expect going forward
WHAT LITTLE DIFFERENCE a year makes! The real estate roller coaster of the last 12 months has finished its cycle and we’re back at the beginning. What a ride that was. Enormous wealth was created. Record levels of anxiety were suffered by buyers competing for homes in the most competitive market we’d ever seen.
Searching for homes on Realtor.ca became a favourite if not required consumer pastime. And after that dramatic year, we’re back to houses being worth what they were a year ago.
These markets, however, are comparatively very different.
Record low mortgage rates are no longer with us. Concerns over a recession and further rate increases have everyone on edge. Confidence in a rising market is no longer present. The number of active listings and available housing inventory is climbing weekly and has for the last five months. Properties are staying on the market for weeks with no end in sight. This phenomenon is not limited to our market ― its true across the country, with few exceptions.
What can we expect going forward? Interest rates will likely continue to climb in a slow and limited way, after dramatic jumps in the summer. Inventory will continue to climb for another month or two until home buyers once again realize current price levels have stabilized and return to the market. We’re on the way to achieving the soft landing our governing systems seem so adept at managing.
Regarding house values, we are basically back to where we were 10 to 12 months ago. But context is everything: current house prices, even after recent declines, are approximately double what they were five years ago! The average home in London in 2017 was in the low $300s, and now is in the mid $600s. The irrational exuberance of the frothy market we managed through in the last year is over. We’re left with a much more realistic and balanced market, with historically reasonable mortgage rates and much more affordable entry-level product.
Going forward, be cautious in buying before selling, price your home competitively for the market we’re in and listen to your trusted real estate professional when they’re trying to gently share with you the truth about the current state of the market.
Address: 61-2189 Dundas Street
MLS number: 40259706
List price: $164,900
Days on market: 93
Size: 1 bedroom, 1 bathroom, 501 square feet
Listing agent: Tingting Hu, Sales Representative, Century 21 First Canadian Corp., Brokerage
Address: 1745 Kilally Road
MLS number: 40284410
List price: $3,500,000
Days on market: 53
Size: 3 bedrooms, 4 bathrooms, 4,700 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group-Select Realty Inc. Brokerage
Address: 1007-600 Grenfell Drive
MLS number: XH4128621
List price: $349,000
Days on market: 35
Size: 1 bedroom, 1 bathroom, 700 square feet
Listing agent: Ail Verma Sales Representative, Re/Max Escarpmment Realty Inc.
Address: 40 Sir Robert Place
MLS number: 40266200
List price: $4,580,000
Days on market: 36
Size: 5 bedrooms, 4 bathrooms, 7,650 square feet
Listing agent: Kim Mullan, Broker, Sutton Group-Select Realty Inc. Brokerage
London South & West
Address: 100-198 Springbank Drive
MLS number: 40255158
List price: $185,000
Days on market: 101
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: 49
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.