Sign of the times
Our real estate market is unlikely to get better anytime soon ― and it could get worse. So, plan accordingly
WE’RE BACK IN school, so let’s see what we learned over the summer. As we come out of August, the average price has fallen slightly by $3,605. The median price (half of the homes sold under this price, half over) is down $18,750 ― a significant drop reflecting more lower priced homes sold skewing the number down sharply. Homes are selling more under their asking price than previously, and that doesn’t account for price reductions on listings, which are very common in today’s market.
Inventory continues to go up, with about twice as many homes listing as sold in the month of August. New listings for the month of August were the highest they’ve been for any August in the last 12 years. Months of inventory is at the same level as last year, and unmatched for the last 12 years. Heading into the fall, we have more active listings than we’ve had in any autumn season over the last dozen years.
“Be wary and cautious of non-fact-based enthusiasm trying to talk up the market. It’s more likely home sellers are poised to list more homes than buyers are poised to buy”
The lesson? It remains a buyer’s market and selling your home can be difficult in this real estate climate.
The media often talks of the market as “poised for a rebound” and “buyers being ready to jump back into the market”. Be wary and cautious of non-fact-based enthusiasm trying to talk up the market. It’s more likely home sellers are poised to list more homes than buyers are poised to buy.
The real estate market is certainly impacted by many things, including mortgage rates, employment rates, immigration rates, relative supply to demand and, perhaps most importantly, consumer confidence. We have a relatively stable market where prices have basically held for the last two years, as supply has steadily grown. The market we have won’t likely change for some time ― measured in years, not weeks or months. Consequently, buy and sell in the market we have ― its not getting any better soon but it could get worse. That’s just one person’s data-driven opinion.
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: 89
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: 74
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: 1451 Stoneybrook Crescent
MLS number: X12316567
List price: $589,000
Days on market: 41
Size: 3 bedroom, 2 bathroom, 1,100-1,500 square feet
Listing agent: Taylor Ivany, Salesperson, Blue Forest Realty Inc. Brokerage
High
Address: 1577 Gloucester Road
MLS number: 40745787
List price: $3,485,000
Days on market: 74
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: 15
Size: 3 bedroom, 2 bathroom, 1,100-1,199 square feet
Listing agent: Hazim Elgwaily, Salesperson, Century 21 First Canadian Corp. Brokerage
High
Address: 20724 Denfield Road
MLS number: X12221123
List price: $3,599,000
Days on market: 87
Size: 3+2 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Bobbi Maroney, Broker, StreetCity Realty Inc. Brokerage
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.