Looking ahead to spring
Balancing supply and demand dynamics, some predictability returns to London’s spring real estate market
MARCH IS UPON us and apparently spring is in tow. It has been a mild winter with no weather to impose any limitations on real estate market activity. Mild weather and a return to seasonality may have contributed to an increase in real estate transactions.
February saw a return to historic transaction volumes, with a total of 594 homes changing hands. Along with more buyers entering the market, there has been a significant number of new listings ― 1,204 last month ― as sellers who’ve been waiting on the sidelines hope to take advantage as the market shows new signs of life.
New demand (buyers) entering the market also added a little upward pricing pressure over the last month, tempered by a significant increase in listings. The average price was up about $1,000 to $604,000, and the median price (the mid-way figure in which half the number of homes sold over and half under) moved up $10,000 to $585,000. Increased activity and pricing pressure means homes are selling closer to the asking price than last month by about 1.5 per cent.
“Don’t try to time the market ― it’s a fool’s game”
From an inventory standpoint, the months of inventory fell from January to February (3.3 months of inventory in January to 2.7 months in February). A slight tightening of supply in the short run, but still a significant amount of inventory (1,500-plus homes), with much of it coming in the last few weeks of February.
Today we will hear if the bank rate changes or holds. Conventional wisdom suggests no change for the next few months while we await more news of inflation’s direction. For buyers and sellers, regardless of the Bank of Canada’s plans, the market should not see any significant swings.
In summary, we have increased demand, but we have a significant inventory as we enter into March. Predicting a significant swing in the market is more precarious than ever. We are likely to continue to see slight changes in the overall market as demand picks up but listing activity surges to meet that demand, maintaining some stability.
The message to both buyers and sellers remains the same: make informed, careful decisions with guidance from professionals. Don’t make commitments you can’t keep. Know what you can afford before you enter the market. And don’t try to time the market ― it’s a fool’s game.
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: $179,000
Days on market: 197
Size: 1 bedroom, 1 bathroom, 680 square feet
Listing agent: Sean Monteith, Sales Representative, Nu-Vista Premiere Realty Inc., Brokerage
High
Address: 1745 Kilally Road
MLS number: 40517811
List price: $2,675,000
Days on market: 99
Size: 3 bedrooms, 4 bathrooms, 4,760 square feet
Listing agent: James Hudson Smith, Sales Representative, Sutton Group – Select Realty Inc., Brokerage
London North
Low
Address: 409-521 Riverside Drive
MLS number: 40537123
List price: $399,900
Days on market: 27
Size: 2 bedroom, 2 bathroom, 1,058 square feet
Listing agent: Justin Van Eck, Sales Representative, Blue Forest Realty Inc.
High
Address: 565 Leyton Crescent
MLS number: 40542143
List price: $2,680,000
Days on market: 14
Size: 6 bedrooms, 5 bathrooms, 5,966 square feet
Listing agent: John H. Crosby, Sales Representative, Royal Lepage Triland Realty
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London South & West
Low
Address: 508-1102 Jalna Boulevard
MLS number: 40548841
List price: $236,500
Days on market: 15
Size: 1 bedroom, 1 bathroom, 600 square feet
Listing agent: Susan Comerford, Sales Representative, Sutton Group Preferred Realty Inc., Brokerage
High
Address: 6584 French Avenue
MLS number: 40538200
List price: $2,449,500
Days on market: 27
Size: 5 bedrooms, 6 bathrooms, 6,160 square feet
Listing agent: Thomas Rauth, 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.