Ramping up for spring
Spring has arrived, and the temperature of the London real estate market is heating up
LAST NIGHT’S THUNDERSTORM was a harsh reminder that spring has arrived, and today’s temperatures, even briefly, will fool us into believing we’ve seen the end of cold weather.
Another marker for spring is the region’s blossoming real estate market. Allow me to share some prescient statistics looking back at the month of March:
• The average sale price in March was 10 per cent higher than in January, rising to $640,000 from $578,000 in January. This is a significant increase, bringing us back to last summer’s price-point;
• There were 1,081 new listings in the month of March and 703 sales; inventory grew by almost 400 homes;
• There is currently 2.5 months of inventory on the market ― the highest level since 2016;
• Despite inventory growth, the average number of days a house remained on the market fell to 16, down from 28 in December; on average listings are lasting only about two weeks on the market before selling;
• More houses sold in the month of March than have sold in any month since last May;
• On average, houses are selling very close to their list price (98.3 per cent of list price), indicating pricing has become very realistic.
Long-term mortgage rates have fallen slightly in the last month as the bond markets predict interest rates will fall in the medium term (two to five years). The important thing to note is the assumption that interest rates have stabilized and stopped climbing. Inflation is being tamed, albeit slowly and not in all categories.
“Inventory is growing as sellers who’ve been waiting the market out are now prepared to list in time for the snow to melt away”
In turn, real estate prices have stabilized and started to climb as demand returns. Inventory is growing as sellers who’ve been waiting the market out are now prepared to list in time for the snow to melt away.
Real estate in London is in limited supply. Demographics suggest we have a housing shortage and won’t be able to resolve it for years if not decades if ever. Demand is growing, supply is limited. It may have been 40 years since my economics course at Huron University College, but I can interpret the conclusion: it’s not going to get any cheaper!
One final note for your consideration: Spring showers have flooded our river banks and low lying parks. Those living rough in our community are cold, wet and continue to suffer. There is a plan that has been finalized to change that for the better ― the Whole of Community System Response. Do your part and donate to www.fundforchange.ca. We are all Londoners!
Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or [email protected].
High- and low-priced real estate listings around town this week
London East
Low
Address: 506-563 Mornington Avenue
MLS number: 40383253
List price: $139,900
Days on market: 27
Size: 1 bedroom, 1 bathroom, 683 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group – Select Realty Inc.
High
Address: 1745 Kilally Road
MLS number: 40377971
List price: $3,250,000
Days on market: 46
Size: 3 bedrooms, 4 bathrooms, 4,050 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group – Select Realty Inc.
London North
Low
Address: 105-1600 Adelaide Street
MLS number: 40389173
List price: $329,900
Days on market: 19
Size: 1 bedroom, 1 bathroom, 765 square feet
Listing agent: Michael Bosveld, Broker, Nu-Vista Premiere Realty Inc.
High
Address: 565 Leyton Crescent
MLS number: 40392184
List price: $3,280,000
Days on market: 12
Size: 6 bedrooms, 5 bathrooms, 5,966 square feet
Listing agent: John H. Crosby, Sales Representative, Royal Lepage Triland Realty
London South & West
Low
Address: 5-198 Springbank Drive
MLS number: 40393898
List price: $149,900
Days on market: 8
Size: 1 bedroom, 1 bathroom, 510 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc. Brokerage
High
Address: 75 Woods Edge Close
MLS number: 40351626
List price: $3,375,000
Days on market: 75
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.