Choppy waters
Strong supply, limited demand, falling prices. The realities of a market in correction
THE REAL ESTATE market is continuing its correction. This week we got the October numbers from the London and St. Thomas Association of Realtors (LSTAR), which showed the average home price in the London region has fallen from $651,000 in August to $605,000 today. In 60 days, the average price has fallen seven per cent, or $46,000. That is historically significant. In addition, in October there were 3,130 active listings looking for buyers, but only 607 recorded transactions.
It appears the real estate market is catching up to the metrics of significant supply and limited demand. A total of 15,200 houses have been listed for sale this year (not including the 2,000 listings we started the year with), but only 6,000 have found buyers. About 33 per cent of the homes available for sale this year have sold. That illustrates just how challenging it can be to find a buyer in this market.
We’re missing confidence. We’ve spent six months hoping a trade deal was in reach, but alas it seems to be far off. The federal government released their budget yesterday, which seems to make the assumption that ‘normal’ trade relations are no longer an option for Canada and the U.S.
“It’s reasonable to assume prices will not rise in the foreseeable future. We may plateau at about $600,000 as an average price in the London regional market. A steady level real estate market may be just what we require for the next few years”
I still believe the best time to sell your home is today. Growing unemployment, reduced immigration and deadlocked trade relations all suggest things could get worse and stay depressed for quite some time. It’s reasonable to assume prices will not rise in the foreseeable future. We may plateau at about $600,000 as an average price in the London regional market. A steady level real estate market may be just what we require for the next few years.
Interest rates have fallen a half percentage point over the last few months, while prices have declined seven per cent in the same period. Affordability in our market has improved. You certainly don’t need to rush into the market as a buyer — take your time and realize you hold a great deal of power. As a seller, price aggressively and do what you must to be one of the lucky one-third who finds a buyer.
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: 1118 Trafalgar Street
MLS number: X12441506
List price: $399,900
Days on market: 33
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: 81
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: 512 St. George Street
MLS number: X12471063
List price: $524,900
Days on market: 16
Size: 3 bedroom, 1 bathroom, 700-1,100 square feet
Listing agent: Owen Price, Salesperson, Keller Williams Lifestyles Brokerage
High
Address: 1577 Gloucester Road
MLS number: X12485236
List price: $3,250,000
Days on market: 7
Size: 5 bedrooms, 3 bathrooms, 6,837 square feet
Listing agent: Steve Bailey, Broker, The Agency
London South & West
Low
Address: 35 Brixham Road
MLS number: X12478130
List price: $399,900
Days on market: 12
Size: 4 bedroom, 3 bathroom, 2,000-2,249 square feet
Listing agent: Jeff Chapman, Broker, Sutton Group Chapman Realty Inc.
High
Address: 20724 Denfield Road
MLS number: X12221123
List price: $3,599,000
Days on market: 143
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.