Housing market reality check
Accept the real estate market for what it is, not what you hope it to be
IN AUGUST 2024, one year ago (seems like a decade!), sales in the London region totalled 570 homes. That was 18 per cent lower than 2014 ― and the lowest in more than a decade. This August (hot times in the city!), there have been 330 sales in the first three weeks of the month, at lower average selling prices than July.
Every day this August, there were on average almost three times as many houses listing as selling (16 houses per day selling, 40 houses per day listing).
“We all want a trigger to turn the market around in a positive way, but that looks to be way off in the distant future”
I share these numbers to illustrate the market continues to be a buyer’s market. Despite a slightly stronger July as compared to last year (which was the slowest July in over 12 years), August appears to be slowing in volume and price. We all want a trigger to turn the market around in a positive way, but that looks to be way off in the distant future.
We continue to have inflationary pressures keeping bank rates elevated. The 30-year U.S. Treasury bond continues to move upward, flirting with five per cent; this puts pressure on mortgage lenders and keeps longer-term, five-year mortgage rates higher, not lower. In turn, the inventory of homes continues to grow and sellers waiting on the sidelines may outnumber buyers waiting out the market.
The market has been relatively flat for a couple of years. There are more downward pressures than upward pressures. Accept the real estate market for what it is, not what you hope it to be.
Market analysis provided by Marcus Plowright, Partner, 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: 1824 Avalon Street
MLS number: X12216101
List price: $469,900
Days on market: 75
Size: 3 bedroom, 2 bathroom, 700-1,100 square feet
Listing agent: Stacey Dale, Re/Max Advantage Realty Ltd.
High
Address: 1839 Parkhurst Avenue
MLS number: X12250574
List price: $1,599,900
Days on market: 60
Size: 4 bedrooms, 4 bathrooms, 2,000-2,500 square feet
Listing agent: Carol Turnbull, Salesperson, Re/Max Centre City Realty Inc.
London North
Low
Address: 353 Cheapside Street
MLS number: X12186516
List price: $450,000
Days on market: 87
Size: 2 bedroom, 1 bathroom, 700-1,100 square feet
Listing agent: Susan Tanton, Broker, Century 21 First Canadian Corp.
High
Address: 1577 Gloucester Road
MLS number: 40745787
List price: $3,485,000
Days on market: 60
Size: 5 bedrooms, 3 bathrooms, 6,837 square feet
Listing agent: Steve Bailey, Broker, The Agency
London South & West
Low
Address: 55 Ashley Crescent
MLS number: X12362822
List price: $414,900
Days on market: 1
Size: 3 bedroom, 2 bathroom, 1,100-1,199 square feet
Listing agent: Hazim Elgwaily, Salesperson, Century 21 First Canadian Corp. Brokerage
High
Address: 3819 Deer Trail
MLS number: X12202475
List price: $3,990,000
Days on market: 81
Size: 5 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Eren Sen, Century 21 First Canadian Corp.
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.