A cautious market

Ballooning inventory. Falling prices. Dark clouds gathering on the economic horizon. Proceed with caution

WHAT’S HAPPENING IN October? Ninety-three of 2,989 available residential listings sold last week. At that rate, it would take seven-and-a-half months to sell out the inventory of current listings — but that’s only if no new listings came to market. Of course, listings are flooding in at three times the rate of sales — so the inventory problem just keeps growing.

Inflation numbers for September went above expectations. The inflation fighting Bank of Canada would normally be inclined to raise rates to slow down the economy and tamp down inflationary pressures, but the independent experts believe, based on comments from the bank, that a rate cut is still likely at the next meeting. The BoC is worried about a slowing economy and believes it is a greater threat than a short-term bump in inflation. Our country’s financial leaders believe there are worse economic times ahead, and they want to get out in front of it to soften the landing.

Real estate prices are falling as supply has dramatically outweighed inventory every day, week and month for the last two-and-a-half years. The cumulative effect is resulting in downward pricing pressure — I would argue that’s an inevitable outcome. The federal government has signalled it believes housing prices have to come down to improve affordability, reinforcing that a federal safety net for real estate is unlikely. There will continue to be incentives floated to spur new construction, but builder volume is so low right now, it may have limited effect.

Caution is the path forward. Know what you can afford. Secure financing well in advance of a purchase. Sell before buying if necessary to save on your next purchase. Understand the risk of a low appraisal affecting your downpayment amount — before making a commitment.

Most importantly, get good advice and heed it. Work with people you can trust. Buying a home is a journey — be patient, ask lots of questions, be informed and then be bold enough to make the life you deserve, in the home your family will be proud of.

Market analysis provided by Marcus Plowright, Partner, A Team London. Marcus can be reached at 519-872-8326 or marcus@ateamlondon.ca.

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High- and low-priced real estate listings around town this week

London East

Low

Address: 1118 Trafalgar Street
MLS number: X12441506
List price: $399,900
Days on market: 19
Size: 2 bedroom, 2 bathroom, 0-699 square feet
Listing agent: Nick Davies, Broker, The Realty Firm Inc. Brokerage

High

Address: 15 Bayside Court
MLS number: X12347183
List price: $1,199,900
Days on market: 67
Size: 3 bedrooms, 4 bathrooms, 2,000-2,500 square feet
Listing agent: Kevin Barry, Broker, Thrive Realty Group Inc. Brokerage

London North

Low

Address: 1451 Stoneybrook Crescent
MLS number: X12316567
List price: $575,000
Days on market: 83
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: 116
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: 57
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: 129
Size: 3+2 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Bobbi Maroney, Broker, StreetCity Realty Inc. Brokerage

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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.