Reckoning for realtors
The big questions, the ones that continue to cloud realtors’ fates, are whether buyers and sellers return in force and how that will affect prices
JUST A FEW days after the Bank of Canada signalled the effective lending rate in Canada would stay the same for the foreseeable future, this week we learned the inflation rate dropped from 5.9 per cent in January to 4.3 per cent in March.
That is a significant decline and a trend we’ve all been waiting for ― one that may stave off the central bank from having to push us into a recession to get inflation under control.
Although wages continue to climb, creating inflationary pressure, this core rate decline helps with the prospect of mortgage rates softening even further. We shouldn’t assume any significant changes for many months, but the trend is likely to be that rates will fall towards the end of the year.
“We continue to wait for buyers, like we do warm weather”
Last week, the inventory of home listings in the London area grew faster than sales. On average last week, about 20 houses sold each day as compared to about 30 new listings. The buyers still aren’t returning to the market, as prices have started to climb once again.
We are a city, province and country with too few homes. You wouldn’t know it from the stable and calm inventory of homes in the area. Investors continue to sit on the sidelines. First-time buyers may not have the buying power with interest rates higher than they’re used to. Senior buyers may still harbour concern about the virus and limit their house viewings accordingly.
We’re entering a spring market that should be strong for local real estate professionals, but confidence seems to missing on behalf of the buying community. We continue to wait for buyers, like we do warm weather ― hope springs eternal, but frost and snow keep us guessing. Patience is in short supply after a roller-coaster year.
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: 57-2189 Dundas Street East
MLS number: 40392205
List price: $189,900
Days on market: 26
Size: 2 bedroom, 1 bathroom, 784 square feet
Listing agent: Rishi Patpatia, Sales Representative, The Realty Firm Inc.
High
Address: 1745 Kilally Road
MLS number: 40377971
List price: $3,250,000
Days on market: 60
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: 33
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: 26
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: 22
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: 85
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.