The great adjustment

Londoners adapt to new realities as housing market returns to a more balanced state

THERE’S GOOD NEWS and bad news…one in the same. The Canadian and American economies are doing better than expected. We haven’t fallen into a recession. Unemployment hasn’t spiked. Inflation remains stickier than is preferred. 

The good news is we’re not suffering a recessionary slowdown. The bad news is this means higher interest rates aren’t causing the harm predicted, and thus there is less incentive to bring them down in the near term.

Canada’s neutral interest rate may be edging higher, and thus a more long-term prediction for interest rates may be that they’ll settle higher than in the recent past. When interest rates do fall, it may be more gradual, and it may settle at a rate higher than we’ve gotten used to.

This means the spring bump in real estate activity may not be induced by a near-term bank rate reduction. 

January figures for the London-area real estate market showed a slight decline in the average home price (to $608,000) and median price (to $580,000). The inventory of houses for sale stayed the same as December at about 1,500. We have about 2.7 months inventory, which shows a more balanced market, although much of that inventory is above the average selling price.

The average time a house is on the market continues to climb ― it’s now up to 34 days. It’s a more challenging time to sell a home. Pricing effectively and presenting your product in its best light is extremely important. 

For buyers, great homes in great locations are still often commanding multiple offers, although this continues to be rare. Ensure you are pre-approved, have good advice from mortgage agents and realtors and only buy what you can afford. Protect yourself with the right conditions in your offers.

Most certainly, 2024 will be a better real estate market than 2023. The good and bad news is it will be a steady market, with much less drama than in the recent pandemic past.

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: 206-563 Mornington Avenue
MLS number: 40530803
List price: $159,900
Days on market: 26
Size: 1 bedroom, 1 bathroom, 683 square feet
Listing agent: Scott Vannoord, Realtor, Sutton Group – Sutton Select Realty Inc. Brokerage

High

Address: 806 Maitland Street
MLS number: 40494215
List price: $2,399,000
Days on market: 122
Size: 6 bedrooms, 5 bathrooms, 4,713 square feet
Listing agent: Michael Reis, Sales Representative, Sotheby’s International Realty Canada, Brokerage

London North

Low

Address: 306-511 Gainsborough Road
MLS number: 40517318
List price: $239,900
Days on market: 79
Size: 2 bedroom, 1 bathroom, 885 square feet
Listing agent: Michelle Dier, Sales Representative, Sutton Group – Select Realty Inc., Brokerage

High

Address: 1185 Richmond Street
MLS number: 40537321
List price: $2,150,000
Days on market: 8
Size: 6 bedrooms, 7 bathrooms, 6,300 square feet
Listing agent: Alfredo Pinzon, Sales Representative, StreetCity Realty Inc., Brokerage

London South & West

Low

Address: 79-198 Springbank Drive
MLS number: 40524940
List price: $199,000
Days on market: 13
Size: 2 bedroom, 1 bathroom, 1,020 square feet
Listing agent: Karen Greason, Broker, Re/Max Centre City Realty Inc.

High

Address: 6584 French Avenue
MLS number: 40538200
List price: $2,449,500
Days on market: 6
Size: 5 bedrooms, 6 bathrooms, 6,160 square feet
Listing agent: Thomas Raugh, Sales Representative, Royal LePage Triland 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.