Declining market playbook
Looking to sell your home? It’s time to think like a salesperson, not like a homeowner
WITHIN ELGIN AND Middlesex counties (London area) as of this morning, there are 2,029 active residential listings. Forty-two, or two per cent of them, are under $300,000, which ironically was London’s average selling price just six years ago. Another 143, or seven per cent, are under $400,000.
There are 1,417, or 70 per cent of active listings, above the average selling price of $620,000 ― 70 per cent of the houses for sale in London are above the average selling price!
Contrasting sales to listings, we are averaging approximately 90 transactions per week in the London region. One in five listings are selling in a given month, with more new listings coming to market each month than are being sold. Suffice to say, we’re in a buyer’s market, one in which prices are generally declining as supply outstrips demand.
“Selling a property today means pricing it aggressively or having it stand out from the crowd by other means”
Selling a property today means pricing it aggressively or having it stand out from the crowd by other means. It must be unique, very well presented or priced to gain attention. Or all of the above.
Today, Canada’s central bank will decide if inflation is tamed enough to stand pat on the bank rate. Regardless, our mortgage rates have been climbing for the last few months due to changes in the bond market affecting fixed mortgages. RBC presented their economic outlook in London yesterday and predicted bank rates would remain relatively constant until Q3 2024 before potentially inching lower. They also warned if inflation worries aren’t fully behind us, another rate increase is imaginable.
A lack of affordability is the main challenge within our Canadian experience and the reason the rest of the world warns us of the Canadian real estate bubble. High levels of immigration may mitigate our housing value decline, but as illustrated above, we have little supply of affordable housing for those new immigrants.
It continues to appear that Canada is managing this affordability gap in a measured way, without a “collapse” of any kind. I’m hopeful our mortgage rules, stress tests and desire to pay our bills will keep delinquencies to a minimum and allow us to weather this storm.
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: 901-563 Mornington Avenue
MLS number: 40502105
List price: $169,900
Days on market: 7
Size: 1 bedroom, 1 bathroom, 683 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group – Select Realty Inc.
High
Address: 1474 Kilally Road
MLS number: 40498125
List price: $2,699,900
Days on market: 13
Size: 4 bedrooms, 2 bathrooms, 1,950 square feet
Listing agent: Mohammed Moosavi, Broker, Century 21 First Canadian Corp.
London North
Low
Address: 606-570 Proudfoot Lane
MLS number: 40502822
List price: $285,000
Days on market: 7
Size: 1 bedroom, 1 bathroom, 853 square feet
Listing agent: Guang Yang, Sales Representative
Brokerage: Express Realty Inc.
High
Address: 15 Denali Terrace
MLS number: 40504031
List price: $3,800,000
Days on market: 60
Size: 6 bedrooms, 5 bathrooms, 7,516 square feet
Listing agent: Mike Sloan, Sales Representative, Royal Lepage Triland Realty
London South & West
Low
Address: 67-198 Springbank Drive
MLS number: 40467265
List price: $195,000
Days on market: 74
Size: 2 bedroom, 1 bathroom, 840 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc.
High
Address: 6584 French Avenue
MLS number: 40499960
List price: $2,449,000
Days on market: 11
Size: 5 bedrooms, 6 bathrooms, 6,116 square feet
Listing agent: Thomas Rauth, Sales Representative, Royal Lepage Triland 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.