Welcome to peak uncertainty
Tariffs on Canadian goods may be delayed for now, but what does the looming threat of a trade war mean for local homebuyers?
REMEMBER JANUARY 2025 as the time of peak uncertainty, and then desperately hope we don’t look back on that month with nostalgia as a stable period. A U.S. trade war delayed is a one-month win but more of the same gut-wrenching unease for the future. On the Globe’s opinion pages today there are no celebrations: “In a trade war with a madman, hold fast, hit hard”; “This is a wake-up call”; “Dependence on America must end”.
We can only hope this tariff war has awakened this sleepy, complacent nation. Of our exports, 77 per cent go to the US. About half of our imports come from America. Interprovincial trade is a problem that is hard to define and therefore complex to remedy. One can only hope that the threat of a trade war is enough motivation for our political leaders to roll their sleeves up on this file. Perhaps in addition to a Fentanyl Czar we require an Interprovincial Trade Czar ― an esteemed retired business leader to take the reins and force change ― a C.D. Howe for our times.
“It appears we don’t have a price problem; we have a demand problem”
How has this uncertainty played out in our local real estate market? Despite another bank rate drop near the end of January, there was limited demand for housing. For London, January house sales were down 26.2 per cent as compared to 2024 ― only 248 homes changed hands. For context, that’s 23.7 per cent less sales than 2015, when our population was much lower. The “pent-up demand” analysts often speak of (for two years and counting) remains just that: “pent”.
Inventory in London as well as the region in general now exceeds five months. New listings exceeded sales by a factor of three to one. Despite this imbalance prices have held steady. It appears we don’t have a price problem; we have a demand problem. These uncertain times are not resolved and therefore a lack of confidence in our individual futures may hold us back from life changing commitments.
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: 1306 Brydges Street
MLS number: X9013498
List price: $357,900
Days on market: 216
Size: 2 bedroom, 2 bathroom
Listing agent: Les Coulter, Sales Representative, Sutton Group Preferred Realty Inc.
High
Address: 1839 Parkhurst Avenue
MLS number: X10429127
List price: $1,699,000
Days on market: 78
Size: 4 bedrooms, 3 bathrooms, 3,500-5,000 square feet
Listing agent: Durga Prasad Aaripaka, Sales Representative, Century 21 first Canadian Corp.
London North
Low
Address: 9 Ardsley Road
MLS number: X10441564
List price: $474,999
Days on market: 74
Size: 4 bedroom, 2 bathroom, 1,100-1,500 square feet
Listing agent: Dean Soufan, Broker, Century 21 First Canadian Corp. Dean Soufan Inc.
High
Address: 864 Clearview Avenue
MLS number: X9298104
List price: $4,295,000
Days on market: 153
Size: 5 bedrooms, 5 bathrooms, 5,000-plus square feet
Listing agent: Michael Reis, Salesperson, Sotheby’s International Realty Canada
London South & West
Low
Address: 53 Ada Street
MLS number: X11901432
List price: $349,999
Days on market: 39
Size: 3 bedroom, 1 bathroom
Listing agent: Trevor Potter, Salesperson, Oak and Key Real Estate Brokerage, Inc.
High
Address: 1011 Cherrygrove Drive
MLS number: X9053822
List price: $3,999,999
Days on market: 195
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.