Overview:
After
a long cold winter, sales have made up for lost time. Unit sales of single
family detached homes have recovered and finish the 10 month period up 5.6% or 241
homes. This represents sales of 4521
single family dwellings over this period.
The
Average home price has also risen across our market. After 10 months the average price in our
trading area for a single family home now sits at $270,807. This represents an
increase of $9,319 or 3.6% throughout our trading area.
Inventories
are currently sitting under a 6 months’ supply but are increasing marginally.
Year-to-date, these increases represent a gain of 3.8 % which should keep the
market in balance in the months ahead,
Forecasts
for interest rates continue to indicate that we will see current levels for
some time. The worst case scenario has
always been no more than ½ % gain. In
other words, it remains a good time to buy or move up working in a balanced
market.
North:
The
average home price in London North now sits at $337,418 representing an
increase of $15,381 or 4.8% over the last 10 months. . With
regard to sales of individual homes in North London, the number of Homes sold
has also increased by 3.5 or 41 more homes sold than a year ago. Inventories are actually down in this area
over this 10 month period which may put more pressure on prices causing further
appreciation. This number has been rising
over the last few months. There were 209 homes listed in October compared to
196 in October 2013. Sales increases in the month reduced this increase in
inventory levels significantly with sales of 107 homes in October compared to
196 a year ago.
South:
The
average price of a home in London South now sits at $285,510 an increase of
$5,584 or 2.0% over the first 10 months of 2013. Sales of individual homes in
the South jumped as well, finishing the 10 month period with a whopping
increase in the number of homes sold, outpacing all areas while delivering an
increase of 11.7% or 148 homes sold. The period finished at 1418 homes sold
versus 1203 in the north. It is
surprising that this increase did not deliver a higher gain in selling prices. Technically, percentage price gains in this
area should outpace the other areas of the City, based on the year-to-date
performance. However, the spread between North London and the rest of the city
seems to be steadily increasing. Sellers
looking to move to North London for business or personal reasons may want to
consider making that move sooner than later.
East:
Homes
prices in the East of London rose $11,614 or 5.7% for detached single family
homes during the first 10 months of 2014. The average price now sit at
$214,461. The number of homes sold has increased
marginally over 2013. The number of Homes
sold to date in this area, increased by 1.7% or 17 more homes sold. In spite of
the fewer sales, prices are rising nicely in the area and “sales to listing”
ratio is the highest for the city. This would indicate that the price gains
should continue if inventories remain consistent.
Summary:
Once
again today continues to be the best time to Buy or Sell a home. The market is in balance. Price increases are
reasonable and will continue moderate value oncrease. Unemployment is stable in
London and there is a solid base of Government, University, College, hospital
and corporate employment in the areas.
Commercial land prices are reasonable are attracting new
investments. Interest rates are
reasonable and expected to remain at current levels. Worst case scenario is a projection at some
time of ½ % adjustment upward on mortgage rates.
We
struggle to understand why so many potentially qualified Buyers continue to pay
rent for no reason, building equity for their landlord rather than fulfilling
the Dream of owning your own home.
Looking
for help? Give us a Call and we will be pleased to give you more information on
specific areas or get you professional assistance with our personal Mortgage
Specialist at Dominion Lending.
Gib
or Mary Heggtveit
Broker
& Sales Representative
RE/MAX
Centre City Realty Inc.
DIrect: 519-421-2626
Cell: 519-535-3975
Oh, by the way, we are
never to busy to help your family, friends, or neighbors who are thinking about
buying or selling a home. Give us a call and we’ll put our team to work them.
