In the numbers

Stubborn sellers, short supply, spiking prices: Deciphering April’s real estate statistics

LONDON’S APRIL REAL estate statistics tell us a story: There were 968 new listings in the month, a decline of 116 listings from the previous month. The number of new listings, in the strong April spring market, declined by about 10 per cent from the normally weaker March market. 

The takeaway is that sellers remain somewhat on the sidelines. They may not be able to find their ideal home, they may be nervous about financing their new purchase or perhaps current interest rates lead them to believe that increased debt obligations are a bad idea.

There were 712 transactions in the month, which was basically equal to March sales. On average, 24 homes sold each day for the last 60 days. The average time a house stayed on the market before selling was down to 14 days from a high of 28 days in December ― houses haven’t been selling this fast since last June.

The average price has climbed to $670,000 from $641,000 in March ― a 4.5 per cent increase in one month. Historically, we would see those types of increases over the course of a year. Inventory of homes has been very steady two to 2.5 months inventory since June. The number of homes for sale does not appear to be affecting home prices.

A deeper dive into pricing provides some perspective. From the beginning of 2010 to the end of 2016, the average price went from $219,000 to $272,000 ― a $53,000 increase (24 per cent) in six years, or roughly four per cent a year. Note that the increase from March to April this year was greater than the average annual increase for that six-year period!

From the start of 2017 to the beginning of the pandemic, prices climbed from $272,000 to $445,000. That’s a $173,000 increase (64 per cent) in three years. Our pandemic experience, albeit volatile, has taken us from $445,000 to $670,000 ― a $225,000 increase (50 per cent) in three years.

In other words, in the last six years, real estate prices have increased about 19 per cent a year, as compared to about four per cent annually in the previous six years.

An average increase of 19 per cent a year for the last six years is an incredible appreciation. It’s been a wonderful time to be a property owner, not withstanding those who bought at the height of the market. Real estate has been a great investment; a wonderful hedge against inflation and most importantly provided a roof over your head. 

In the last 90 days, average home prices in London have surged almost $90,000. Supply will continue to be limited as numbers suggest our housing inventory is dramatically too low. If house prices settle back at all, it will be slight. But if housing prices continue to climb, it may be dramatic, as the last 90 days have illustrated. Now is the time to act.

Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or marcus@ateamlondon.ca.

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: 40
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: 74
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: 412-600 Grenfell Drive
MLS number: 40410540
List price: $325,000
Days on market: 4
Size: 1 bedroom, 1 bathroom, 784 square feet
Listing agent: Jill Chapman, Sales Representative
Brokerage: Sutton Group Chapman Realty Inc.

High

Address: 40 Sir Roberts Place
MLS number: 40408760
List price: $3,580,000
Days on market: 5
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: 5-198 Springbank Drive
MLS number: 40393898
List price: $149,900
Days on market: 36
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: 1
Size: 5 bedrooms, 7 bathrooms, 8,308 square feet
Listing agent: Owen Price, Sales Representative, Keller William Lifestyle Realty

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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.