Making the move

If you’re among the many prospective homebuyers and sellers who’ve been sitting on the real estate sidelines, now is the time to take the leap

Making the move sidelines London Inc. RealtyAT THE START of the pandemic ― just three very long years ago ― the average price of a home in London was $445,000.  Today, the average price exceeds $617,000. Pandemic effects such as the desire to cocoon, work from home, vacation in place and, most notably, extremely low interest rates created a frenzy in real estate that we’re still reeling from.

In the long run, with the experience that time affords us, we should appreciate the relative growth in the value of real estate, rather than the drop from the artificial high of one year ago.

There are many homeowners sitting on the sidelines waiting for the market to “bounce back” from the decline experienced last year. This approach may miss recognizing the historic climb of the previous five years. From 2017 to 2022, the average price of a home in London grew from about $300,000 to over $800,000. It almost tripled in value, growing some $500,000.

In the last year, the average price fell from $820,000 to $617,000, or about $200,000. So, the average price in the last six years has climbed by over $300,000.

“The market has settled back to where it belongs, relative to neighbouring communities and the GTA. Expect average home values to stay in the $600s for some time and get on with planning your life”

Given mortgage rate expectations, expanded immigration and pent-up demand from buyers waiting for inflation to calm and uncertainty to diminish, it is likely the market has already found its bottom and we’ll continue to see some very slow but steady gains in the real estate market. Spring brings listings out, as seller’s gardens come into bloom. Every day in the last week, listings have exceeded sales by an average of 12 homes, adding 87 houses to the inventory in just the last seven days.

Sellers should appreciate that, in the scope of the last six years, they’ve done very well. You haven’t “missed the market” ― you lived through a historic climb in value that included a dramatic correction off a historic high. The market has settled back to where it belongs, relative to neighbouring communities and the GTA. Expect average home values to stay in the $600s for some time and get on with planning your life.

For buyers, as inventory ramps up and interest rates stabilize, now’s the time to take the leap. Know what you can afford, find a real estate agent you can trust to guide you in this process and start living your best life!

Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or [email protected].

Making the move sidelines London Inc. Realty

High- and low-priced real estate listings around town this week

London East

Low

Making the move sidelines London Inc. Realty

Address: 506-563 Mornington Avenue
MLS number: 40383253
List price: $150,000
Days on market: 20
Size: 1 bedroom, 1 bathroom, 683 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group – Select Realty Inc.

High

Making the move sidelines London Inc. Realty

Address: 1745 Kilally Road
MLS number: 40377971
List price: $3,250,000

Days on market: 39
Size: 3 bedrooms, 4 bathrooms, 4,050 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group – Select Realty Inc.

London North

Low

Making the move sidelines London Inc. Realty

Address: 105-1600 Adelaide Street
MLS number: 40389173
List price: $349,500
Days on market: 12
Size: 1 bedroom, 1 bathroom, 765 square feet
Listing agent: Michael Bosveld, Broker, Nu-Vista Premiere Realty Inc.

High

Making the move sidelines London Inc. Realty

Address: 565 Leyton Crescent
MLS number: 40392184
List price: $3,280,000
Days on market: 5
Size: 6 bedrooms, 5 bathrooms, 5,966 square feet
Listing agent: John H. Crosby, Sales Representative, Royal Lepage Triland Realty

London South & West

Low

Making the move sidelines London Inc. Realty

Address: 7-49 Ridout Street South
MLS number: 40365511
List price: $259,900
Days on market: 71
Size: 1 bedroom, 1 bathroom, 639 square feet
Listing agent: Thomas Vincent Bogad, Sales Representative, The Agency Real Estate

High

Making the move sidelines London Inc. Realty

Address: 75 Woods Edge Close
MLS number: 40351626
List price: $3,375,000
Days on market: 64
Size: 5 bedrooms, 7 bathrooms, 8,308 square feet
Listing agent: Owen Price, Sales Representative, Keller William Lifestyle 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.

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