State of the market
A year in review and market expectations for 2024
AS WE APPROACH year’s end, speculation continues as to what to expect for 2024. Many say interest rates will be falling through the year, with many hoping for early signs of rate relief.
But there was an interruption to that narrative yesterday when the year’s final inflation numbers were announced. The steady decline in the rate of inflation came to an end yesterday, with inflation holding steady at 3.1 per cent. The Bank of Canada has repeatedly stated they require a steady and assured declining inflation rate to have the confidence to begin to ease benchmark rates. This interruption of the decline will likely delay rate changes further into 2024.
Many realtors across Canada believe the value of real estate in Canada has bottomed out. They believe pent-up demand, record immigration and drastically lowered housing starts will inevitably lead to prices climbing in 2024. Many believe interest rate cuts will start in early 2024, sparking an aggressive return to the market from buyers, driving prices up.
However, this “hope” is simply a possibility. It’s certainly not assured. We currently operate within a buyer’s market. Record new listings (supply) will enter the market, even if demand comes back, thus keeping pricing pressures under some control.
“As a homebuyer, you have a phenomenon that has been absent in the recent past: options and choice”
There will be buying opportunities through the winter months, as homeowners continue to grapple with mortgage rate adjustments from their historic lows of the last five years. As a homebuyer, you have a phenomenon that has been absent in the recent past: options and choice. In these circumstances, buyers are in the ideal position to negotiate the best deal possible. That power may erode as we approach the spring market, especially if inflation starts falling once again, and economists have confidence in pending rate cuts.
It’s been a challenging year for the real estate industry. Average prices in the London region went from $609,000 in November 2022 to $678,000 in May 2023 and back to $600,000 in November 2023. The market priced in a spring correction before the Bank of Canada slapped it back down with relentless rate increases.
The number of homes for sale in our market has almost doubled over the last year. 2024 will most assuredly bring a changed market, as slow new construction, intense population gains and incentivised rental construction start to have some effect on our market. These effects will most likely be gradual as our market has now stabilized. The swings simply won’t be as dramatic as in the past.
Happy Holidays to everyone!
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: 108-1174 Hamilton Road
MLS number: 40521548
List price: $169,900
Days on market: 6
Size: 1 bedroom, 1 bathroom, 505 square feet
Listing agent: Blake Palmer, Broker, Re/Max Centre City Realty Inc
High
Address: 1745 Kilally Road
MLS number: 40517811
List price: $2,950,000
Days on market: 22
Size: 3 bedrooms, 4 bathrooms, 4,760 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group – Select Realty Inc.
London North
Low
Address: 112-511 Gainsborough Road
MLS number: 40522708
List price: $207,990
Days on market: 1
Size: 1 bedroom, 1 bathroom, 704 square feet
Listing agent: Nigel Mahabir, Sales Representative, The Agency Real Estate
High
Address: 99 Fitzwilliam Boulevard
MLS number: 40475790
List price: $2,690,000
Days on market: 105
Size: 4 bedrooms, 6 bathrooms, 6,377 square feet
Listing agent: Justin Konikow, Sales Representative, Prime Real Estate
London South & West
Low
Address: 67-198 Springbank Drive
MLS number: 40467265
List price: $195,000
Days on market: 130
Size: 2 bedroom, 1 bathroom, 840 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc.
High
Address: 2643 Old Victoria Road
MLS number: 40519690
List price: $11,900,000
Days on market: 11
Size: 5 bedrooms, 5 bathrooms, 9,111 square feet
Listing agent: Trisha Crinklaw, 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.