Market update for the First Half of 2021 in London & St Thomas.

 

City of London:

Listings have been Steadily but marginally increasing. In January there were only 494 new listings, February 721, March 1,112, April 1,074, May 1,114 and then in June 1,101 homes came to Market across the City. When added to the few remaining previously listed homes supplies remain limited. The number of homes offered for sale has consistently remained at about 1 month supply or less. In June rose marginally to about 1 ¼ months.  Remember a balanced market, where biding wars don’t take place, is 6 months’ supply!

 

The bidding wars are continuing. In January homeowners averaged 8.7 % of asking. This means virtually all were in Bidding Wars.  In February through April Homeowners averaged over 114 % of asking prices. In May this ratio dropped marginally to 112.5% and fell again in June to 108.5% of asking prices, really the result of a few more homes coming to Market in May and June.

 

Across the City sales have consistently increased month by month. Remember in January we started the year with 404 homes sold across the city. By April there were 826 homes sold, May 923 homes sold and in June 827 homes sold.

 

With this unusually tight inventory of homes available, prices continued to climb.  In December, we finished the year with a record of $561,716 for the average home across our city and by March 31, 2021, we hit a new average high of $631,546 an increase of about $70,000 in just 3 months. We peaked at $643,047 in April  an leveled slightly in May at $632,381 and finished June at an average across the city at $628,739.  It appears the maximum price is holding at around $630,000 range. Homes priced to a top selling price for a specific size and feature home are not receiving bidding wars and usually sell 2% to 3%below listing price.  Homes priced below market at $599,900, about $50K to $75K below value are getting massive bids and often do better than a market priced home. Buyers from out of town, with an out-of-town Realtor, are looking at Realtor.ca and can only see competing homes for sale.

London North:

In January there were 158 new listings on homes offered for sale, since then the number of homes offered for sale has steadily increased month by month peaking in March at 361 homes sold, rebounding again in June with 363 sales. When added to the few remaining, previously listed homes, inventories of available homes remain limited. The last couple of months have seen a marginal increase to about 1 ½ months’ supply.  Remember a balanced market is 6 months’ supply!

 

The bidding wars are still occurring as a result. In January Homeowners averaged 8.6 % above asking price. This means every properly priced home experienced Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 112.6 % of asking prices. In March as supply fell again against increased spring demand increasing “list price to sell price ratios” peaking at 113 % of asking prices. As prices rise the offers over list have leveled a bit to 106.9% of asking prices in June. This is the highest priced market segment of our city and area and homes in June sold across North London sold in an average of 12 days.

 

Do not forget the number of homes sold in North London are also increasing. In January we started the year with 121 homes sold in this area. In February, this number increased to 182 homes sold, in March this jumped to 310 homes sold and finally in April things leveled to 249 homes sold and increased again through to June finishing at 281 homes sold in the area.

 

Tight inventory of homes available continues to drive prices upward. In December, we finished the year with a record of $648,310 for the average home price in North London.  January showed a jump of 10.3% to $726,006. In February average price leveled to $708,484, March rebounded with value increase to $733,872 and we peaked in April delivering a new average price for the month of $761,052. In May this average softened to $740,365 and finished June with an average for the month of $722,791.

London South:

In January there were 192 new listings, and steadily increased peaking in April at 440 new listing coming to Market. The number of new listings since then have dropped marginally to 404 homes listed in the South in May and 401 homes listed for sale in June.  When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies of homes available for sale have consistently remained below 1 months’ supply since January! Choice increased marginally in June to about 1 ¼ months’ supply. Remember, a balanced market is 6 months’ supply!

 

The bidding wars are continuing as a result. In January homeowners averaged 6.1 % above asking price. This means virtually every sale involved Bidding Wars.  In February, March and April, the sale price remained above 13 % of asking prices. In June, this average list to sell ratio still finished at respectable 108.7% of asking prices. In January it took 19 days to sell a home and by April and again in June, it had dropped to only an average of 9 days to sell.

 

Let us look at sales across London South. In January we started the year with 138 homes sold across the area. In February, this number increased to 252 homes sold, in March through April sales exceeded 330 sales per month. June finished up the first 6 months with 298 sales.

 

Continuing tight inventory of homes available, still drove prices upward.  In December, we finished the year with a record here, as well, of $582,713.  January showed a jump of 22.2% to $712,295. In February, a drop in average value to $650,039, March delivered an average of $631,643, April delivered $654,576, May delivered average $658,344. The average selling price in June for this area came in at $623,754.

London East:

In January there were 141 new listings, February 199 new listings, March 312 new listings April 299 listings, May 350 new listing, dropping a bit in June to 333 homes coming to market. Added to the few remaining previously listed homes the inventories of available homes remain limited. With aggressive sales in this area inventories averaged below 1 months’ supply except the month of April that rose to just over 1 month of homes coming to market.  In June inventories rose marginally to about 1 ¼ months’ supply. Remember a balanced market is 6 months’ supply!

 

In January homeowners averaged 114.3 % of asking price. With massive Bidding Wars.  In February, April, and May’s homeowners averaged above 115 % of asking prices. In March, this competitive activity peaked at 117.8 % of asking prices and finished up June with averages of 110.5 % of asking prices. For most of the spring it took an average of 9 days to sell a home. In June this rose to an average of 11 days.

 

Let us look at sales across London East. In January we started the year with 126 homes sold across the East. In February, this number increased to 159 homes sold, in March this number of homes sales rose to 247, In April, this number settled at 226 homes sold and rose again in May to a record 305 homes sold. Sales in June leveled back to sales of 244 homes.

 

With this continuing tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record here, as well, of $440,794.  January showed a marginal drop to 6.9 % to $410,500. In February, we saw a significant rebound in average value to $467,574, March delivered the peak average home prices at $508,244 (with the lowest months’ supply so far). May delivered an average price $502,163. The average house price in June in London East averaged out at $499,503.

St. Thomas:

In January there were 37 new listings, February 70 listings, March 117 listings April only 122. In May and June inventories of new listing fell.  May saw 101 new Listed homes and June only 97 homes came to market. When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies of homes offered for sale in St. Thomas have been well below a single month’s demand. We now sit slightly above a months’ supply. Remember, a balanced market is 6 months’ supply!

 

You can imagine the bidding wars that are occurring as a result. In January Homeowners averaged 10.4 % above asking price. This means virtually every sale involved Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 116.3 % of asking prices. In March this dropped marginally to 110.9 % of asking prices and in April increased marginally to 111.8 % of asking prices. These bidding wars peaked in May at 112.6% of asking prices, finishing June at 108% of asking prices.  In January it took 12 days to sell a home and by April it had dropped to only an average of 8 days to sell and back up to 13 days in June.

 

Let us look at sales across St. Thomas. In January we started the year 34 homes sold across the City. In February, this number increased to 57 homes sold, in March this number of homes sold rose to 91 for the month of March and finished at 110 homes sold in April. Remember inventory is limited. May finished with 91 sales and June with 75 sales.

 

With this continuing tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record here, as well, of $438,898.  January showed a further jump of 20.3% to $528,142. In February, another increase in average value to $540,096, March delivered a solid value increase to $562,248 and finished April at $540,360, May $555,293 and June with a smaller sales base at $543,275 for the City.  With the sale of the Ford property to a major developer in Talbotville with proposed clients such as Amazon values will continue to set records here.

Summary:

Always remember, I am here to help in any way that I can be of service to you and your family.

First, I have a message for First Time Home Buyers. In this crazy on-going Covid Market, you may need Family support for the down payment to help you bid 10% to 15% over the asking price.  The first step is to get pre-qualified by a Mortgage Broker or your Bank and try for a open mortgage. Once you find out what you can reasonably afford, plan to bid above the asking price as described above with a Cash, Non-Conditional Offer with a short closing if you are renting.  With the average price running up +20% you will logically be able to pay back Mom and Dad within 12 months.  As your Realtor, I will investigate market values in your planned neighbourhood and provide comparable sales.

 

Now for you Move-Up Buyers, now is the best time to use some of that equity that you have built up over the last year. The first step is to get pre-qualified by your existing mortgage holder and outline how your new mortgage will be blended without penalty. Once you find out what you can reasonably afford, I will evaluate the Market Value of your home and outline all contingencies at no cost to you. This will give you the ability to safely overbid the asking price with a Cash Non-Conditional Offer and a closing of 2 to 3 months. If priced reasonably, you can expect the same over-bidding that you are making. Your equity will cover the excess price on Closing.  With the average home selling within 2 weeks, the risk is virtually non-existent.

 

Lastly, if you do not have to sell, this is the worst time to do so! Every day that passes brings increased equity to our current homeowners.

 

I am here ready to assist!

 

Do not wait, pick up the phone, or email and I will be at your side, looking after the best interests of You and Your Family!

 

Just Call:

Cell- 519-535-3975

Home Office- 548-688-8833

Email- gib@youtfavouriterealtors.com

 

MLS connected Website – http://YourLondonRealtor.com

Market update for the First Quarter of 2021 Plus Overview of April 2021 in London & St Thomas.

 

City of London:

The numbers of new listings have been revised from my Video. In January there were only 494 new listings, February 721, March 1,112 and April 1074 homes came to Market. When added to the few remaining previously listed homes supplies remain limited. The number of homes available for sale, dropped from a high in January of just under one month’s supply months’ supply for the slowest selling time of the year to about ¾ months’ supply in February and dropped again in March to only a small fraction of a month’s supply.  April rebounded marginally back to 1/2 months’ supply.  Remember a balanced market is 6 months’ supply!

You can imagine the bidding wars that are occurring as a result. In January homeowners averaged 8.7 % of asking. This means virtually all were in Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 114.2 % of asking prices. In March this rose to 114.7 % of asking prices and leveled off a bit with the larger number of homes coming to Market in April at 113.4 % of asking prices.

Let us look at sales across the City. In January we started the year with 404 homes sold across the County. In February, this number increased to 603 homes sold, in March this jumped to 903 homes sold and finally sales dropped a bit in in April leveling at 827 homes sold.

With this unusually tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record of $561,716 for the average home across our City and by March 31, 2021 we hit a new average high of $631,768 an increase of over $70,000 in just 3 months. We finished April with a final overall monthly increase in the first 4 months of 2021 of 14.6 % delivering a new average home price for the month of $643,957.

 

London North:

In January there were 158 new listings on homes offered for sale, February 213 homes, March 213 homes. Finally in April, 327 homes came to Market. When added to the few remaining, previously listed homes, inventories of available homes remain limited. Supplies dropped from a high in January of 80% of one month’s supply for the slowest selling time of the year, to about 1/2 month’s supply in February and a fraction of a month’s supply in March.  April rebounded marginally back to about 1/2 of a single month’s supply.  Remember a balanced market is 6 months’ supply!

You can imagine the bidding wars that are occurring as a result. In January Homeowners averaged 8.6 % above asking price. This means every properly priced home experienced Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 112.6 % of asking prices. In March as supply fell again against increased spring demand increasing “list price to sell price ratios” marginally to 113 % of asking prices. April finishing at 112.3 % of asking price. In April, it took only an average of 7 days to sell a home down from 11 days the month before.

Let us look at sales in North London. In January we started the year with 121 homes sold in this area. In February, this number increased to 182 homes sold, in March this jumped to 310 homes sold and finally in April things leveled to 249 homes sold.

With this unusually tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record of $648,310 for the average home price in North London.  January showed a jump of 10.3% to $726,006. In February average price leveled to $708,484, March rebounded with value increase to $733,872 and we finished April with a final average increase for the first 4 months of 2021 of 17.4 %, delivering a new average price for the month of $761,052.

 

London South:

In January there were 192 new listings, February 296 listings, March 430 listings and finally in April only 441 homes came to Market. When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies dropped from a high in January of about 75 % month’s supply for the slowest selling time of the year, to negligible supplies versus demand in February, March and April! Remember, a balanced market is 6 months’ supply!

You can imagine the bidding wars that are occurring as a result. In January homeowners averaged 6.1 % above asking price. This means virtually every sale involved Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 115.8 % of asking prices. In March this dropped marginally to 114.8 % of asking prices and in April fell marginally to 113.4 % of asking prices. In January it took 19 days to sell a home and by April it had dropped to only an average of 9 days to sell.

Let us look at sales across London South. In January we started the year with 138 homes sold across the area. In February, this number increased to 252 homes sold, in March this number of homes sold rose to 336 for the month of March and finished at 348 homes sold in April.

With this continuing tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record here, as well, of $582,713.  January showed a jump of 22.2% to $712,295. In February, a drop in average value to $650,039, March delivered a solid value increase to $631,643 and we finished April delivered an overall increase after the first 4 months of 2021 of 12.3 % when compared to December of 2020, delivering a new average price for the month of $654,576 for this part of the City.

London East:

In January there were 141 new listings, February 199 listings, March 312 listings and finally in April leveling a bit to 299 homes coming to Market. Added to the few remaining previously listed homes the inventories of available homes remain limited. With aggressive sales in this area inventories sat at marginal levels well below half a month’s supply though until the month of April to about 80% of a single month’s supply. Remember a balanced market is 6 months’ supply!

In January homeowners averaged 114.3 % of asking price. With massive Bidding Wars.  In February homeowners averaged 115.4 % of asking prices. In March, this competitive activity increased to 117.8 % of asking prices and in April it fell marginally to 115.6 % of asking prices. In February, March and April, at the same time, it took only an average of 9 days to sell the average home.

Let us look at sales across London East. In January we started the year with 126 homes sold across the East. In February, this number increased to 159 homes sold, in March this number of homes sales rose to 247, In April, this number settled at 226 homes sold.

With this continuing tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record here, as well, of $440,794.  January showed a marginal drop to 6.9 % to $410,500. In February, we saw a significant rebound in average value to $467,574, March delivered a solid value increase to $508,244 and we finished April with increase that finishing the first 4 months, month by month, of 2021 of 13.8 %, delivering a new average price for the month of April of $501,943 for East London.

 

St. Thomas:

In January there were 36 new listings, February 63 listings, March 112 listings and finally in April only 117 homes came to Market. When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies of homes offered for sale in St. Thomas are negligible versus demand. Remember, a balanced market is 6 months’ supply!

You can imagine the bidding wars that are occurring as a result. In January Homeowners averaged 10.4 % above asking price. This means virtually every sale involved Bidding Wars.  In February as months’ supply dropped, Homeowners averaged 116.3 % of asking prices. In March this dropped marginally to 110.9 % of asking prices and in April increased marginally to 111.9 % of asking prices. In January it took 12 days to sell a home and by April it had dropped to only an average of 8 days to sell.

Let us look at sales across St. Thomas. In January we started the year 34 homes sold across the City. In February, this number increased to 57 homes sold, in March this number of homes sold rose to 91 for the month of March and finished at 110 homes sold in April.

With this continuing tight inventory of homes available, what did this do to prices?  In December, we finished the year with a record here, as well, of $438,898.  January showed a further jump of 20.3% to $528,142. In February, another increase in average value to $540,096, March delivered a solid value increase to $562,248 and we finished April, average down a bit, delivering an overall increase after the first 4 months of 2021 of 23.1 % when compared to December of 2020, delivering a new average price for the month of $540,360 for the City, the highest value improvement in LSTAR’s Jurisdiction.

 

Summary:

Always remember, I am here to help in any way that I can be of service to you and your family.

First, I have a message for First Time Home Buyers. In this crazy on-going Covid Market, you may need Family support for the down payment to help you bid 10% to 15% over the asking price.  The first step is to get pre-qualified by a Mortgage Broker or your Bank and try for a open mortgage. Once you find out what you can reasonably afford, plan to bid above the asking price as described above with a Cash, Non-Conditional Offer with a short closing if you are renting.  With the average price running up +20% you will be able to pay back Mom and Dad within 12 months.  As your Realtor, I will investigate market values in your planned neighbourhood and provide comparable sales.

 

Now for you Move-Up Buyers, now is the best time to use some of that equity that you have built up over the last year. The first step is to get pre-qualified by your existing mortgage holder and outline how your new mortgage will be blended without penalty. Once you find out what you can reasonably afford, I will evaluate the Market Value of your home and outline all contingencies at no cost to you. This will give you the ability to safely overbid the asking price with a Cash Non-Conditional Offer and a closing of 2 to 3 months. If priced reasonably, you can expect the same over-bidding that you are making. Your equity will cover the excess price on Closing.  With the average home selling within 2 weeks, the risk is virtually non-existent.

 

Lastly, if you do not have to sell, this is the worst time to do so! Every day that passes brings increased equity to our current homeowners.

 

I am here ready to assist!

 

Do not wait, pick up the phone, or email and I will be at your side, looking after the best interests of You and Your Family!

 

Just Call:

Cell- 519-535-3975

Home Office- 548-688-8833

Email- gib@youtfavouriterealtors.com

 

MLS connected Website – https://YourLondonRealtor,com

 

What is Happening to London and Area Real Estate during the Corona-19 Pandemic?

City of London:

For the Sake of this exercise, we are going to look only at Pandemic activity and trends.

For the period from April 1, 2020 to May 31, 2020 Sales were unbelievably slow across the City. There were 287 homes sold in April and 438 homes sold in May.  Sales improved 52.6%, on a month-over-month basis, for this 2-month period.  This is a positive result, considering the circumstances and does indicate the start of a trend.  On the other hand, these numbers still represent a year-over-year decline with April 2020 sales falling to 339 units or -49.4% and May 2020 sales off 342 units or -43.9% versus 2019 results.

The other component to the future of sales and pricing will be inventory (the number of homes available for purchase). Inventories fell 55.2% from 850 homes available in March to 469 available across the City in April.  Inventories gained by 32.4% in May to 621 homes available across London.  This is still well below normal levels. 

We will do further analysis of price impact by specific market area below.

London North:

In this popular area of London, there were 101 residential Sales in April 2020 and 125 sales in May 2020, down from 235 and 237 homes sold in April and May 2019. As a result of the higher average listing, and selling prices, the month-over-month increase in homes sold this year was only 23.8%. 

To put things in perspective, sales for the first two months ending February 29, 2020 were flat year over year. March 2020 finished up 12% over March 2019 in spite of stalling mid month with 195 homes sold. We now know what happened to sales, but what about the number of homes that were offered for sale in this area?  During the first 3 months of 2020 inventories of homes available increased an average of 8% each month.  In April, inventories dropped 19.3% from 804 homes available in 2019 to 642 homes.  In May, inventory dropped 34.5% over April 2019 results to 603 homes for sale, even below April 2020 inventories. This put upward pressure on pricing due to significant decrease in homes available for sale.

It is important to know that the average price in this area for the first 3 months of 2020 averaged up with an increase of 7.1% over the same period in 2019 reaching $520,444 up from $486,040.  During the month of April prices continued to rise moving from $504,846 in 2019 to $528,134 for this year. In the month of May this increase held, with prices moving from $491,014 In 2019 to $528,933 in May 2020.

Thinking of Selling fast? Now is  great time to take advance of lower competition.  We still believe prices have not peaked yet, so if you do not need to sell or upgrade, wait.  This means this is a great time to move up or buy that dream home.

 London South: 

There were 109 residential Sales in April 2020 and 198 sales in May 2020, down from 250 and 318 homes sold in April and May 2019. As people are still cautiously coming back to the market in this new environment and the appeal of a lower average price, the month-over-month increase in homes sold this year was up 81.7%!  Homeowners during April and May 2020 received and average of 100% of asking prices, indicating bidding wars on homes priced to market.  The increase in sales month-over-month and the average selling price are solid indicators that prices are going to go up!

The average price in London South followed these trends and increased to an average of $473,059 in May after a one month decline in April to an average of  422,955.  The average house prices in South London were off to a ripping start for the first 3 months of 2020, up 21.9% to an average of $449,616 compared to an average in the first 3 months of 2019 of $368,753!

It is apparent that the Purveyors of Doom and Gloom for the prices of homes, are currently misinformed. If a significant number of people are forced to sell their homes as result of employment losses this may have some dampening effect, but for now, prices will rise.

London East:

The Month of April delivered 101 residential Sales in in London East and 125 sales in May 2020, down from 201 and 225 homes sold in April and May 2019. In May 2020, London East experienced a significant reduction in normal availability of homes offered for sale.  May 2019 had 554 homes offered for sale.  In May 2020 this availability dropped 35.4% to 358 homes offered for sale. The month over month increase in homes sold this year was up 23.8%! 

The average price in London East also followed these trends and increased to an average of $354,947 in April and then to an average of  $365,096 for May.  The average house prices in London East set the 2020 record for the City so far with average home price increases of 22% for the first 3 months to $368,753 compared to an average in the first 3 months of 2019 of $302,381!

Homeowners this year received 103.7% of asking prices in April and 103.0% in May.  The significantly low inventories and average pricing in London East will result in bidding wars for homes properly priced to market. These current conditions are solid indicators that prices are going to go up!  No better time for first time buyers to buy, than right now!

St. Thomas:

The Month of April delivered 42 residential Sales in St Thomas and 51 sales in May 2020, down from 84 and 72 homes sold in April and May 2019. May 2019 had the same number of homes for sale as April 2020, a total of 196 homes listed for sale.  In May 2020, this availability dropped 11.7% to 173 homes offered for sale. This also represented a decrease of 20.6% versus May 2019 inventory levels at 218 homes offered across the city for sale.

The average price in St Thomas enjoyed the highest gains in prices in the area once again in the first 3 months of 2020 prior to the pandemic closures, up 16.2% for the City to $385,525.  Since then, prices have leveled from a high in March 2020 of $393,668 to $363,177 in April and a gain in May of $369,462. 

A contributing factor for May’s gain was the reduction of homes available for sale from 5 months of supply in April to only 3 months availability in May 2020. Homeowners are consistently getting an average of 100% of asking prices indicating that bidding wars are still at play in this area on homes priced to market. St. Thomas continues to be an ideal investment market based on an average price for the area below $400,000.

Summary:

There is no doubt that the factors that drove prices up in the last few years are still at play. Demand is there but being cautious because of fears of contamination of individuals and homes.

The Real Estate industry is being cautious as well. For example, Offices and Realtors have been practicing social distancing, aggressive sanitization and protection of clients, staff, and themselves.

My team is discouraging speculation buying and dealing primarily with fulfilling the legitimate needs of Buyers and Sellers who must participate in this unique market.

To address the health and safety of our clients we are adding the following specific enhancements to our already extensive Marketing Program:

·        Fine tuning needs to specific homes to discourage unnecessary viewings of homes.

·        Team Heggtveit is now using Virtual Open Houses and 3d Online Tours (provides ability to use computer mouse to view and walk through every aspect of a home as if visiting yourself).

·        Team Members all practice Social Distancing, wear masks while constantly washing and sanitizing hands, whenever meeting or going out in public. Showing respect for others.

·        Providing hand sanitizers, masks, gloves, and boots for home visitation with our Clients. 

·        During home visits we will personally guide our client through the home, answer all questions, open any doors, cupboards etc. This will allow our Clients to walk thorough without having to touch anything.  We will subsequently dispose of protection materials following the showings.

·        All showings will be exclusive.  No other person or Realtor will be permitted to enter a home at the same time.

·        Young Children must be left at home or with caregiver to protect them from touching something in the home that could affect the family’s health.

Ready to take part in this new Social Distancing World?  Give us a call and we are ready to go to work just for you.

Gib Heggtveit      Cell:  519-535-3975

Mary Heggtveit   Cell:  519-535-7355