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:
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
