Coping with a correcting market
With sellers expecting yesterday’s price and buyers wanting tomorrow’s price, a correcting market is much different than it was just a few months ago
IN THE FACE of a changing market, homebuyers are waiting for sellers to catch up. Sellers are lagging the market as they hang on to the faint hope of a rebound. There may be unscientific evidence of this lag in the listing data. For example, in Middlesex County, which includes London, there are currently 276 residential listings over $1,000,000. That’s simply extraordinary for sleepy London, Ontario.
Let’s remember, 13 years ago the average selling price in London still hadn’t exceeded $200,000! Million-dollar homes were extremely rare. It wasn’t until 2019 that the average breached $400,000. And then, only three years later, we broke through the $800,000 average-price mark in January of this year, only to fall back to about $650,000 in July.
“We can’t know for sure when we hit bottom, and the factors that drive that are more macroeconomic than they are locally oriented”
That sudden and dramatic climb from 2019 to 2022 is being followed by a steady decline as the market settles back. We can’t know for sure when we hit bottom, and the factors that drive that are more macroeconomic than they are locally oriented. Inflation, interest rates, the cost of construction, recessionary pressures ― all are having an impact.
It’s possible September will be telling. Summer holidays will be over and kids back at school. One more interest rate adjustment will be settled and absorbed. The number of houses for sale in the market will have grown to the extent that the market is fully balanced, with buyers having a wide choice in a range of price categories.
Sellers could be forced to accept offers lower than they’d hoped, or they may lower their asking prices as listings sit for a few more weeks. We may see in September that the bottom is achieved, and we can then move forward with that rare commodity these days: confidence.
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: 10-3902 Dundas Street East
MLS number: 40311414
List price: $149,900
Days on market: 6
Size: 2 bedroom, 1 bathroom, 946 square feet
Listing agent: Damian Steele, Sales Representative, Re/Max Centre City Realty
High
Address: 1745 Kilally Road
MLS number: 40284410
List price: $3,500,000
Days on market: 60
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: 1007-600 Grenfell Drive
MLS number: XH4128621
List price: $349,000
Days on market: 13
Size: 1 bedroom, 1 bathroom, 700 square feet
Listing agent: Ail Verma Sales Representative, Re/Max Escarpmment Realty Inc.
High
Address: 40 Sir Robert Place
MLS number: 40266200
List price: $4,580,000
Days on market: 43
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: $185,000
Days on market: 108
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: 70
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.