Right now, people are moving back into the Real Estate Market. We just ended the slowest Home Sale Year in a quarter of a Century.  Unemployment remains outstandingly low, and the economy is not in recession, with inflation under control at +2%. Inflation has slowed on Food prices to around 3% with grocery stores clearly indicating that that this is global in nature and is really driven in Canada by the supply chain.

The Feds held the current bank rate steady.  This clearly puts more stability back into the housing market allowing Buyers to hold on to their current bank mortgage pre-approval. Economists all predict a lower of Bank of Canada interest rates within 3 months.  Remember, rental incomes are up over 25% in our area last year and vacancy rates are at 1% of available properties. 

Our population growth due to lifestyle, immigration, refugees, and significant new employment opportunities is adding to the problem. Our local Builders are facing increased building costs for land, lack of skilled trades and increased materials costs and thus new builds are not taking place.   London & St. Thomas are the fastest growing economies in Ontario

What Should Buyers and Sellers Do? 

My message to “First Time Home Buyers” is BUY NOW!  Basically, activity is very low, prices are beginning to rise and Buyers are in a position not be in an across the market competitive situation yet and in several price categories can negotiate marginally while putting all clauses needed to protect themselves in their offers.

Move-up Buyers should list their home first with an “Experienced Realtor” who will analyze the selling environment and may not get what you thought you’d get, but then you will be able to buy your desired property, without bidding wars, and negotiate the purchase price marginally while place the conditions that you need in your offer. Remember, Both buyer and seller can put in offers to close June 30, 2024

The time it takes to sell the average home is moving up. If you need to sell, now is a good time to list. Over the last 2 tumultuous years the bestselling months have been a strong March followed by good sales in May and finally June.

The Market Activity:

Sales have slowed dramatically to the slowest point since 1998.  In December last year, the number of homes sold bottomed out at 251 homes with changing hands across the city. In January 2024 we saw sales increase by 27% with Buyers purchasing 319 homes across London. February sales jumped again by increasing another 27.3% with 406 homes changing hands. 

The time it takes to sell the average home is still averaging 34 days but dropping. This is still a recovering market.   As we move into the spring and sales continue to increase as consumer confidence returns to the marketplace, we are seeing the “Months to Sell “drop monthly from a high in November of 5 months to only 2 months in February.  Expired listings are down well over 50% as Sellers begin to follow the advice of “experienced” Realtors, pricing to market. Bidding wars will return in the months ahead in popular price categories as interest rates drop and qualifications improve. The average home is now receiving an average of 98.2% of their asking prices, which is up from 96.7% in December, showing prices are realistic and negotiations are getting more difficult. Homes priced between $400,000 and $800,000 all fall into this range where most sales take place.  In the first 2 months of this year 105 homes between $800,000 and $1,500,000 sold

The average price of a Home across London rose marginally on a small sales base back to a median of $582,500.00 average not seen since August last year. The average price is consistently rising marginally.  The projection for 2024 is an overall price increase of +4%. 

If you want to talk or get more specific information, just give me a call. You know I am always here ready to help.

And stay safe. Hope to see you soon.

Gib Heggtveit

Real Estate Broker