The City of London:
Back in 2015
the average price of a home in the City of London for the 12 months ending
December 31 sat at $265,717. The average price of a home as of December 31,
2019 rose 55.4% to $413,005 over the 5 years.
Looking at
results by year:
Year Avg Price $ increase %
increase
2015 $265,717
2016 $283,624 +$17,907 6.7%
2017 $336,038 +$52,414 18.6%
2018 $373,283 +$37,245 11.8%
2019 $413,006 +$39,723 10.6%
The
inventory of homes available for sale has contributed to price gains as this
graph illustrates. Low supply and high demand. Remember a balanced market is 6
months of supply. It took an average of
22 days to sell the average home across the City in 2019.
As you can
see the January inventories each year are the highest as these are the slowest
traditional months each year. This graph
also indicates that we are slowly moving toward a balanced market. We will address what the average homeowner is
getting for their home in each price category later in this analysis.
The number
of homes sold over the five years is as follows by year:
Year Sold % increase
2015 6,271
2016 6,715 +7.0%
2017 7,498 +11.6%
2018 6,420 -14.3%
2019 6,612 +3.0%
This is
where we look at what percentage of asking price people are getting for their
homes across the city of London.
Typically, in a balanced market homeowners average around 97% asking and
selling time is about 3 months. Clearly higher inventories are indicating the
ability to some negotiation is on the increase.
Homes priced between $250,000 and $450,00 are the categories that will
experience bidding wars at peak times of the year.
This next graph
illustrates the importance of sales activity by month in a calendar year. For
the purpose of this exercise we are using 2019 actual activity.
London North:
The number of homes sold
in London North rose 4.9% during the 12-month period ending December 31,
2019. From June to November inventories
in this area are lower than the city average and have been sitting constantly at
3 to 4 months of supply. Inventories
this past summer were identical to the same period last year.
Over the past years the
North outpaced the the average selling price for the city and rose 55.% from
$316,618 to $491,591. Selling prices
rose 8.1% over the last 12 months from $454.339 for 2018.
Homeowners
in North London experienced an average of 100% of asking price like 2018,
driven by lower inventories in all price categories and by a desire to live in
the North of the city. This graph will
better illustrate this activity by price.
London South:
London south
outpaced the city as a whole in 2019 with the number of homes sold increasing
4.65% over 2018. The city itself had a sales increase of 3%. Once again, the average supply of homes
available did not change year over year by month averaging between 3 and 4
months of supply keeping upward pressure on prices once again.
The average
home price in London South rose 11.6% or $43,249 raising the average price
above $300,000 range to $416,619. Outpacing the City and North London.
In spite of
low supply of homes, competition in London South softened marginally from an
average of 100.3% of asking price to an average of 100% of asking price. As you can see by the graph above the highest
growth in prices was in the back half of 2019.
London East:
The number
of actual homes sold in 2019 was virtually the same number as 2018, with 1944
home sold compared 1,950 a year earlier. A drop of 8 homes. This result is due to a limited supply of
choices available. This area of the city
consistently runs at only 2 to 3 months of supply. The average months of supply was 9.6% lower
over the 12-month period putting significant upward pressure on prices. The average difference between asking price
and selling price rose from 101.2% to 101.5% resulting bidding wars in most
price categories.
As a result
of these conditions, the average price of a home in this area rose from an
average price in the $200,000 range to over $300,000. The average home now sits
up $33,741 or 11.7% to $323,041.
Over the
last 5 years the average home price has risen 54.8%.
St Thomas:
The number
of homes sold in St. Thomas has dropped over the last 2 years from a peak in
2018. Inventories remain consistently tight at 3 months’ supply keeping upward
pressure on prices. In other words, the number homes offered remains below
demand, the average homeowner is getting
100% of asking price and bidding is common.
Inventory:
Year Homes sold % Change
2015
772
2016 800 +3.6%
2017 865 +8.1%
2018 780 -9.8%
2019 761 -2.4%
So, what did
all these changes do to prices in the area? The average home price, barring any
catastrophe, has made a significant move into the $300,000 price range enjoying
an average price increase of +16.1% across the city. The average price rose $47,988 to $346,726
Year Avg Price % increase
2015 $212,863
2016 $226,024 +15.9%
2017 $259,993 +15.0%
2018 $298,738 +14.9%
2019 $346,725 +16.1%
Summary:
All
indications are that the price run is not over yet. St. Thomas is poised to set more record price
gains followed by East London. East
London may surprise all in 2020 setting the highest price gains due to very
limited choices for homes and the lowest prices available to the first time
Home Buyer. The number of homes available in this area has been consistently at
2 months supply for the last 3 months. Be ready for at least 8% gain across the
Area for home prices in 2020.
Inventories are creeping higher as we saw over the last 2 years.
If you would
like more information about your home value and what is happening in your
specific neighborhood, remember we are here to help.
Tell your
Family, Friends and Co-workers about us. We offer more than 25 years combined
Sales experience in Real Estate and we really do care about you.
Real Estate
Done
Now! Done Right!
Mission Statement
To always place the needs of our valued Clients ahead of our personal needs
thereby delivering caring and focused services at all times.
To be our Clients’ and Friends’ Real Estate Consultants for
life.
To look after the needs of their Family, Friends , Co-Workers
who they entrust to our care.
To Treat All with dignity and respect to be accorded at all
times.
To stay in touch, consistently providing items of value and
support over the months and years ahead.
Gib & Mary
Heggtveit
Real Estate Broker
& Sales Representative
RE/MAX Centre City
Realty Inc
Direct:
519-421-1991 Gib:519-535-3975 Mary : 519-535-3975
Gib@YourFavouriteRealtors.com
This is a great breakdown and understanding of a local market. Many local real estate agents don't take the time to evaluate and let the general public know exactly what is going on in their area. Job Well Done.
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