Right now, people are hanging on to what they have, due to uncertainty in the Real estate market.  Unemployment remains low and the economy is not in recession yet, with inflation still high at 5.82%. Food prices are a big factor affecting everyone running above 10% with grocery stores blaming the supply chain while making record profits. Rumors abound that the Feds will raise interest rates further because of these factors.

At the same time the dilemma is that rental incomes are up over 25% in our area and vacancy rates are at 99% or available properties. Our population growth due to lifestyle, immigration, refugees, 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.  

What Should Buyers and Sellers Do?

In other words, my message to “First Time Home Buyers” is BUY NOW!  Basically activity is very low, prices have bottomed out and starting to rise marginally and you are in a position not be in a competitive situation and can negotiate marginally while putting all clauses needed to protect yourself in your offer.

Move-up Buyers should list their home first with an “Experienced Realtor” who will analyze the selling environment and maybe 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.

Based on these projections it will take longer to sell. If you need to sell, is now a good time to list. Over the last 2 tremulous years the bestselling months have been a strong March followed by good sales in May and June.

The Market Activity: 

Sales have slowed dramatically to the slowest since the global recession in 2009.  Demand is pent up, but people are fearfully waiting to see what the future holds.  In December last year 204 homes changed hands across the City. In January 2023 we saw Buyers purchase 247 homes across the city of London.

The movement has been erratic this year with June not historically being the biggest home sales month, as in the past.  The slowdown started in April this year with the first of the interest rate raises.

The time it takes to sell the average home has now reached an average of 35 days for both December and January.  This is a marginal increase from the previous months. We are now sitting on an average of 4 months of supply which has been our average monthly inventory supply level since last August. Negotiations are now occurring on a regular basis. The average home is now receiving between 97.4% of their asking prices. The strongest category is homes priced between $500,000 and $600,000 while the lowest categories run between $800,000 and $900,000, based on smaller sales activity at this time of year.

The average price of a Home in our City fell marginally based on a small sales base below $600,000.00 from the low $600,000 range realized from August to October. We are really back now to the same average price realized for most of 2021. The average price, I believe, has now bottomed out.  I do not believe we will see  lower prices in this market. Any increase will only be marginal as confidence comes back.

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

Visit my website at :

gibheggtveit.remaxcentrecity.ca 

Email me at

gibh@remax.net  

or  

Text me at

226- 407-9022 

And stay safe. Hope to see you soon.

Gib Heggtveit

Real Estate Broker