When the numbers don’t add up
Amid higher interest rates and falling prices, homebuyers are backing out of pre-construction purchase contracts at an elevated rate
THE WEEK BEFORE Thanksgiving saw an extremely slow real estate market. There were about 13 houses per day changing hands, as compared to an historic average closer to 20.
With over 2,100 houses on the market, we have over 22 weeks of inventory. Buyers are in control ― that is if your listing is over $500,000. We do have substantial inventory, but three-quarters of it is above $680,000. Only about 20 per cent of the housing inventory available in our local market is at or below the average price. We have a surplus of homes above the average price, and a shortage of homes below the average.
“Perhaps the greatest depreciation has occurred in presold new builds just coming to completion. It may take years to work through that inventory and settle the inevitable lawsuits”
The greatest contrast in our market is between new builds and resale homes. Pre-construction properties sold more than a year ago are now appraising significantly below their purchase price, breaking the financing of many buyers and straining builders beyond compare. Perhaps the greatest depreciation has occurred in pre-sold new builds just coming to completion. It may take years to work through that inventory and settle the inevitable lawsuits.
These are trying times. Affordability at all income levels is stressed to the breaking point. Now more than ever, you need very calculated and informed advice. Get experienced professional real estate agents, mortgage advisors and lawyers supporting you in your buying or selling journey.
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: 1106-573 Mornington Avenue
MLS number: 40472962
List price: $179,700
Days on market: 50
Size: 1 bedroom, 1 bathroom, 680 square feet
Listing agent: Sean Monteith, Sales Representative, Nu-Vista Premiere Realty Inc.
High
Address: 806 Maitland Street
MLS number: 40494215
List price: $2,399,000
Days on market: 7
Size: 6 bedrooms, 5 bathrooms, 4,713 square feet
Listing agent: Michael Reis, Sales Representative, Sotheby’s International Realty Canada
London North
Low
Address: 312-600 Grenfell Drive
MLS number: 40480620
List price: $319,900
Days on market: 29
Size: 1 bedroom, 1 bathroom, 859 square feet
Listing agent: Dean Soufan, Broker, Century 21 First Canadian Corp.
High
Address: 15 Denali Terrace
MLS number: 40470666
List price: $4,250,000
Days on market: 53
Size: 6 bedrooms, 5 bathrooms, 7,516 square feet
Listing agent: Mike Sloan, Sales Representative, Royal Lepage Triland Realty
London South & West
Low
Address: 55-198 Springbank Drive
MLS number: 40493560
List price: $80,000
Days on market: 9
Size: 1 bedroom, 1 bathroom, 760 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc.
High
Address: 75 Woods Edge Close
MLS number: 40445791
List price: $2,989,000
Days on market: 104
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.