Down we go
As London’s market lethargy lingers, home prices continue their downward march
THE LOCAL REAL estate board, the London and St. Thomas Association of Realtors (LSTAR), puts out weekly numbers for their members ― new listings, sales, total inventory, average prices. For the last four weeks, there has been a trend of falling sales and falling prices. Listings continue to outpace sales by more than two to one. Most significantly, prices have shown considerable decline over the last four weeks. We are seeing the results of an excess supply forcing sellers to recognize their prices have been simply too high for the market conditions.
Despite five months of Bank of Canada rate cuts, with more expected, affordability remains a challenge and buying opportunities are still strong enough to put downward pressure on prices. November through February are the seasonally slowest months for volume in real estate. Slow seasonal sales, combined with an abundance of supply and diminishing hope for a spring demand surge ― all these factors suggest continued sluggishness and price erosion for the coming winter months.
“Holding out for spring salvation, as we did last year, likely won’t pay off; conversely, prices may fall further, but at a measured pace”
Remember, less than half the houses listed this year sold. If you’re a seller, don’t forget your home is worth what someone is willing to pay for it in the current market. Holding out for spring salvation, as we did last year, likely won’t pay off; conversely, prices may fall further, but at a measured pace.
For buyers, there are great opportunities, but buying right, with the appropriate safeguards, is increasingly complicated. In our current system, sellers pay the buyer’s agent commissions. Take advantage of having a skilled team of agents working on your behalf ― make sure they do their homework and listen to their guidance. Real estate is hard ― now more than ever! Get the help you deserve.
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: 966 Princess Avenue
MLS number: X10406163
List price: $344,900
Days on market: 7
Size: 1 bedroom, 1 bathroom
Listing agent: Haley Geddes, Sales Representative, Century 21 First Canadian Corp.
High
Address: 129 John Street
MLS number: X9234740
List price: $5,595,000
Days on market: 102
Size: 9 bedrooms, 19 bathrooms, 5,000+ square feet
Listing agent: Trent Forristal, Salesperson, Sutton Group – Select Realty, Brokerage
London North
Low
Address: 19 Empress Avenue
MLS number: X9493483
List price: $469,900
Days on market: 20
Size: 2 bedroom, 1 bathroom
Listing agent: Andrew Stinson, Salesperson, Century 21 First Canadian Corp.
High
Address: 864 Clearview Avenue
MLS number: X9298104
List price: $4,675,000
Days on market: 68
Size: 5 bedrooms, 6 bathrooms, 5,000-plus square feet
Listing agent: Michael Reis, Sales Representative, Sotheby’s International Realty Canada
London South & West
Low
Address: 348 Wharncliffe Road South
MLS number: X93550551
List price: $429,900
Days on market: 54
Size: 4 bedroom, 1 bathroom, 700-1,100 square feet
Listing agent: Colin Abbot, Broker, Oak and Key Real estate Brokerage Inc.
High
Address: 1011 Cherrygrove Drive
MLS number: X9053822
List price: $4,250,000
Days on market: 110
Size: 4 bedrooms, 4 bathrooms, 5,000-plus square feet
Listing agent: James Smith, Sales Representative, Sutton Group – Select 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.