LONDON & ST THOMAS 2018 MARKET REVIEW

City of London:

The number of homes sold this year in the City of London itself improved in the last half finishing -14.4% versus 2017. Remember we started over 30% below last year’s record year.  This year the City of London delivered Home Owners an average minimum of 100.3% of their list price for the year, because of continued limited supply of homes to buy. The number of days that it took to sell the average home in London finished the year at 23 days.

As you can see on the graph above, selling price of homes in the City have risen nicely. In 2017 the Average Selling Price of a Home in London reached $336,038. Home Owners will be pleased to know that this year the Average Selling Price finished above my projection of 5% to 8% and actually finished at $373,269, up 11.1%, or $37,231 for 2018. 

Buyers coming into or Living in London did not like paying more than $600,000 for premium homes. The number of homes sold this year priced between $600K to $700K is 43% lower than homes prices between $500K and 600K. The 500K to 600K range was the most popular range above $450K. Here is a graph that illustrated activity by price this year. Remember this is the top end of our market.

London North:

Sales in London North fished the year down only -15.9% for the 12-month period versus 2017 This is a little more than the City shortfall. The 3^rd quarter was very strong. Sales softened in December to -14.7% below 2017. Don’t forget this area has the highest average price. It still only took an average of 23 days to sell a home for the year in this area. Home Owners consistently received an average of 100% of asking price. This indicates multiple offers across the board. 

 

As you can see by the graph above, London North has the highest average selling prices in the City.  The Average Home Selling Price last year reached $408,318 in North London. This year prices for the year have risen +11.2% or a gain of $45,812 for an average Home. The new Average Selling price in North London is now $454,130. One other interesting number to share with you. In September the average selling price based on only 171 homes sales reached an average of $486,640.  See my comments on the London Buyer $600,000 maximum price barrier.  Pricing a home at $599,900 has brought about multiple bidding wars.  As time passes the acceptance of homes priced between $600,000 and $700,000 will become more normal. Remember when Buying, or Selling, look at comparable homes.  Your decision to Sell, or to Buy, will be based on a realistic price. 

We must stress again, that we believe this upward price trend will continue. Following a 49% increase in home sales in November, the month of December cooled off a bit with a 13.8% decrease in the number of homes sold. The number of homes available was still below t months of supply (6 months is considered a market in balance) keeping upward pressure on prices. We recommend that Buyers MOVING UP" or "FIRST TIME BUYERS", do it right now! Sellers that want to "DOWNSIZE" , don't do it now! You are throwing away potential equity gain, unless you must. Remember there are always Equity Mortgages available.

London South:

Sales in London South due to moderate price range have performed better than the North on a year-to-date basis. The decline over last year’s record Sales of Homes finished down only -14.7%.  The number of Home offered for sale still sits at about 5 months of supply.  This is up marginally over the last few months. The number days to sell a house finished the last 12 months at an average of only 21 days.   Because of the continued limited supply of homes for sale, the average Home Owner in the South end of the City of London got an average of 101.1% of their asking price.  This average was holding at 100% for September, October and November. What does all this mean?

.

Sale prices for Homes in South London finished up +9.9% above 2017. This represents an average increase in value and equity of $33,602. The average Home in South London now sells for $373,537 up from $339,936 last year. As you can see things are still moving up…the average selling price for the 104 homes that were sold in this area in December 2018, the slowest month of the year hit $417.091.  We must stress again that we believe this upward price trend will continue based on limited availability of homes offered for sale.

We recommend that Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgage’s available…

London East:

Sales in London East due to lowest average price range in the City have performed better than the rest of our trading area versus 2017. The decline over last year’s record Sales of Homes finished 2018 down only -12.2%.  The number of homes in this area available for sale finished the year still sitting at an average of only 3 months’ supply.  This limited supply of Homes offered for sale has dropped the average number of days it took to sell a Home to an average of 21 days for the year.  London East, having the most economical pricing for the City of London, delivered the Average Home Owner 101.2% of asking price for 2018.

In 2017, the average home price is East London sat at $252,942 for the calendar year.  Prices have now risen across the East by a whopping 14.4% or +$36,355.  This Area continues to be an affordable area for First Time Buyers to get into this crazy Market. The rules here are the same as the rest of the City. If you are a Buyer MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away potential equity gain, ...No one should be paying a landlord if they can afford to buy! You just lose money. Look at Toronto and other centres of the world.. Most people in these markets tying to enter the market can't afford to do it. Once you are a Homeowner, you are able to maintain your ability to upsize  or keep your costs down as you build equity. 

St.Thomas:

I repeat that I believe St. Thomas is an opportunity Market.  It is apparent that Buyers are picking up on the bargains in this Bedroom Community of City of London.  The number of homes sold in the City of London finished down -14.4%.  St. Thomas finished the year down only 9.8% against last year. The number of homes offered for sale has consistently sat at 3 months average supply, per month, since June and rose to only 4 months’ supply in December.  The number of days to sell a home in this area sits at an average of 22 days.  Clearly this continues to be a Seller’s market with a price advantage.  Home owners have been getting 100% of asking price every month since January.

St. Thomas finished the year up 14.9% in value. Believe it or not, the average Home in the City of St. Thomas still sits below $300,000.  The average home sold for $259,983 in 2017.  In 2018 the average price in this area rose 38,755.00.  This represents the highest gain in value in the area and because the average price is under $300,000, this drive upward is likely to continue.  The Selling or Buying rules here are more applicable than ever!  If you are a Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgages available…Nobody should be paying a Landlord, if they can afford to buy! You just lose money. Look at Toronto and the other major centers of the world… Most people trying to enter those Markets can’t afford to do it.  Once you are a Home Owner, you are able maintain your equity build position.

Summary:

We are here to “Help”, You, Your Family, Your Neighbours, Your Co-Workers and Your Friends!  Any time to Buy or Sell, is a good time in this “Hot Market”!   Why?  If you are paying rent the Housing Market is leaving you behind.  Any home ownership is keeping pace for your ability to move up as you build equity too.  It is also a good time to move up, let’s say the difference is value of your Home to the Home you want to Buy is $75,000.  Doing it now, may put $5000 to $7500 future equity in your pocket, if the Market moves anther 6% to 10 %.  This is not a time to procrastinate. An average of 2,327 home sell every month across our trading area in 2018.

 

If we are running close to last year’s sales of homes now, we should Buy and Sell close to 6000 homes between October and December.  Based on the price trends in the last few months we will see additional price gains.

If you are thinking of liquidating or downsizing, “DON’T DO IT NOW “, unless you have to.

CALL TODAY:

Gib Heggtviet                            Mary Heggtveit

Real Estate Broker                   Sales Representative

Direct: 519-535-3975                Direct: 519-535-7355

Gib@YourFavouriteRealtors.com Mary@YourFavouriteRealtors.com

London St. Thomas Third Quarter Market Update 2018

Our Trading Area:

The Real Estate Market is still “Hot” with prices rising and low inventories across our trading area. Sales on a year-to-date basis are still below last year’s record of 28,831 sales for the area by -19.5%. We started 2018 with sales running 30% below 2017. That gap has narrowed by a strong 3rd quarter. July was 97.3% of last year. August was 101.2% of last year and September hit 89.8% of last year. The average price of a Home in our trading area moved up the first 9 months of 2018 by 8.1% over the first nine months of 2017 and now sits at $395,197 for a home in our trading area. It was at $365,592 as of last September based on a rolling year average.

City of London:

The number of homes sold this year in the City of London itself are now only off -18.5%. Remember we started over 30% below last year’s record year. We have explained previously that a balanced market (good supply and good demand) is 6 months supply. We hit 4 months’ supply in July then dropped to 3 months for August and September. This puts significant upward pressure on prices. This year the City of London delivered Home Owners an average minimum of 100% of their list price, every single month of this year, because of this limited supply market. It is currently at this level. This is a quieter time of year but still very active. The number of days that it took to sell the average home in London moved between 23 and 24 days for July, August and September and now sits at 23 days,

As you can see on the graph above, selling price of homes in the City have risen nicely. Last year at this time the Average Selling Price of a Home in London reached $337,681. Home Owners will be pleased to know that this year the Average Selling Price is up above my projection and sits up 10.2% or $34,393 of the first 9 months of 2018. September as you can see by the Graph above hit $400,000.
Buyers coming into or Living in London don’t like paying more than $600,000 for premium homes. The number of homes sold this year priced between $600K to $700K is about 40% lower than homes prices between $500K and 600K. Here is a graph that illustrated activity by price this year. Remember this is the top end of our market.

London North:

Sales in London North are now only down -20.2% on a year to date basis over last year’s record. This is a little more than the City shortfall. Don’t forget this area has the highest average price. Once again, the number of Home sold in the 3rd Quarter have been much closer to 2017 3rd Quarter results and are down only -7.6%. Inventories are low, running at 4 months supply of homes for sale in September up from 3 months supply in August. It took 29 days to sell a home in September, up marginally from 26 days in July and August. What does all this mean? Well, its
still very much a Seller’s Market based on demand and the number of homes coming to market that are offered for sale. Home Owners are consistently getting 100% of asking price.

As you can see by the graph above, London North has the highest average selling prices in the City. The Average Home Selling Price last year reached $410,594 in North London. This year prices for the first 9 months have reached +10.5% or a gain of $43,150 for an average Home. The new Average Selling price in North London is now $453,744. One other interesting number to share with you. In September the average selling price based on only 171 homes sales reached an average of $486,640. See my comments on the London Buyer $600,000 maximum price barrier. Pricing a home at $599,900 has brought about multiple bidding wars. As time passes the acceptance of homes priced between $600,000 and $700,000 will become more normal.

Remember when Buying, or Selling, look at comparable homes. Your decision to Sell, or to Buy, will be based on a realistic price.

We must stress again, that we believe this upward price trend will continue but should slow next year to more normal annual increases. We recommend that Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgage’s available…

London South:

Sales in London South due to moderate price range have performed better than the North on a year-to-date basis. The decline over last year’s record Sales of Homes is only -18.4%. The number of Home offered for sale now sits at 4 months of supply. This is up marginally over August 2018 at 3 months supply. The average days to sell, because of the slower time of year, has been running between 22 and 23 days for July and August and then back down to 22 days for September. Because of this limited supply of homes for sale, the average Home Owner in
the South end of the City of London is still getting 100% or better of their asking price. The average has been holding at 100% for the last 3 months. What does all this mean?

.
Sale prices for Homes in South London are now up 9.0% over the first 9 months of 2017. This represents an average increase in value and equity of $31,391. The average Home in South London now sells for $368,910.00 up from $338,516 in September last year, based again on nine months of sales of homes. As you can see things are still moving up…$371,143 in August and $401,524 (based only on an average of about 200 homes a month in South London). We must stress again that we believe this upward price trend will continue but should slow next year to more normal annual increases. We recommend that Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgage’s available…

London East :

Sales in London East due to lowest average price range in the City have performed better than the rest on a year-to-date basis. The decline over last year’s record Sales of Homes is only -16.6%. The number of homes in this area available for sale sits at an average of only 3 months supply up marginally from August when it dipped to 2 months only. This limited supply of Homes offered for sale has dropped the average number of days to sell a Home from 22 days in July up to 23 days in August down to only 18 days in September. London East, having the most economical tradition pricing for the City of London, delivered the Average Home Owner 100% of asking in July and August and rose to 101.5% in September because of the very limited supply of homes offer for sale.

In 2017, the average home price is East London sat at $254,630 on a year to date basis to September 30. Prices have now risen across the East by a whopping 13.2% or +$33,575. This Area continues to be an affordable area for First Time Buyers to get into this crazy Market. The rules here are the same as the rest of the City. If you are a Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgage’s available…Nobody should be paying a Landlord, if they can afford to buy! You just lose money. Look at Toronto and the other major centers of the world… Most people trying to enter those Markets can’t afford to do it. Once you are a Home Owner, you are able maintain your equity build position.

St.Thomas:

I have been stating for some time that I believe St. Thomas is an opportunity Market. It is apparent that Buyers are picking up on the bargains in this Bedroom Community of City of London. We have stated that the year-to-date performance for our trading area sits down at -19.5% when compared to last year’s record sales of Homes. St. Thomas is only down 13.8% against last year’s number of homes sold over 9 months. In the last 2 months St. Thomas Home Sales have been above last year for the same period. The number of homes offered for sale has consistently sat at 3 months average supply, per month, since June. The number of days to sell a home in this area reached 25 days on average in September. Clearly this continues to be a Seller’s market with a price advantage. Home owners have been getting 100% of asking price every month since January.

Believe it or not, the average Home in the City of St. Thomas for the first 9 months of 2018 still sits below $300,000. At the end of September after 9 months in 2017, a record year, the average price reached $255,436. In 2018 the average price in this area rose +16.4% or $41,816.00. This represents the highest gain in value in the area and based on an average price of less than $300,000, this drive upward is likely to continue. The Selling or Buying rules here are more applicable than ever! If you are a Buyers “MOVING UP” or “FIRST TIME BUYER”. Do it right now! Sellers that want to “DOWNSIZE” Don’t Do It Now! You are throwing away equity, unless you must. Remember that there are always Equity Mortgage’s available…Nobody should be paying a Landlord, if they can afford to buy! You just lose money. Look at Toronto and the other major centers of the world… Most people trying to enter those Markets can’t afford to do it. Once you are a Home Owner, you are able maintain your equity build position.

Summary:

We are here to “Help”, You, Your Family, Your Neighbours, Your Co-Workers and Your Friends! Any time to Buy or Sell, is a good time in this “Hot Market”! Why? If you are paying rent the Housing Market is leaving you behind. Any home ownership is keeping pace for your ability to move up as you build equity too. It is also a good time to move up, let’s say the difference is value of your Home to the Home you want to Buy is $75,000. Doing it now, may put $5000 to $7500 future equity in your pocket, if the Market moves anther 6% to 10 %. This is not a time to procrastinate. An average of 2,327 home sell every month across our trading area in 2018.

If we are running close to last year’s sales of homes now, we should Buy and Sell close to 6000 homes between October and December. Based on the price trends in the last few months we will see additional price gains.

If you are thinking of liquidating or downsizing, “DON’T DO IT NOW “, unless you have to.

CALL TODAY:

Gib Heggtviet                          Mary Heggtveit
Real Estate Broker                   Sales Representative
Direct: 519-535-3975              Direct: 519-535-7355
                    

 Gib@YourFavouriteRealtors.com 

Mary@YourFavouriteRealtors.com

Prices Don’t stay Down EVER! Look at the average prices for 2008 when World recession hit and 2009 when we started recovery in back half.

Don’t “Wish You Did”

Call Now: 519-421-2626

Your 6 Month Market Update for London, St. Thomas and Area - 2018

London St. Thomas & Area Overview:

The number of homes sold over the last six months is lower that last year (a record year) by 26.5%. The number of homes offered for sale started the year with slightly over 5 months’ supply of homes and then dropped in March to an average of 4 months.  Remember a balanced market is 6 months’ supply of homes for sale.  Since the end of April, the number of homes offered for sale have increased marginally and now sit at 5 months’ supply. This will improve Buyer’s ability to negotiate in some price categories. Home Owners are now getting an average of 99% of their asking prices. This indicated that many price categories and areas are in bidding wars. Prices across our trading area are up nicely by 5.9% over last year’s record price increases. The average home across the county is now worth $385,586 which is an increase of $21,601 for the first 6 months of 2018.  If supply of homes continues to increase, we may experience some leveling in price increases.  In my last report the number of homes available was lower and we were heavily into bidding wars. This activity has cooled somewhat because of the continued increase in available properties. Prices won’t likely fall as we are still seeing an influx of Toronto Buyers cashing in on their leveling market.  Based on this activity we can expect an increase of about 6% to 8% for the year over 2017.

London:

The number of sold homes within the City of London is also reflecting a downturn, driven by sales with limited supply (less than 6 months inventory of homes for sale).  The number of homes sold is off 24.3% versus last year’s record number of homes sold.  Prices on the other hand are still rising, the average home now sits up nicely by 8.4% or $29,000 bring the average home to $370.435. 

Inventories are low in London sitting at only 3-month average until June when they rose marginally to 4 months. This low availability is what is driving the prices up across our trading area. Home owners are getting an average of 101.8% of their asking prices…Homes priced from $100,000 to $800,000 are all selling at over 100% of asking price.  If this market continues with tight supply, significant demand will continue to push prices upward.  Inventory levels are obviously the key. First Time Buyers and Move Up Buyers need to get in now to benefit from continued equity growth in the back half of this year and in the years to come and from our low mortgage rates.  This is obviously not the time to downsize unless you need to do it.

London North:
The number of homes that sold in the first 6 months is down by 26.2% versus the first six months of last year’s record year. The number of homes offered for sale has gone as low as only 2 months’ supply in March, then 3 months in April up to 4 months for May and June. This lower availability that is lower than the overall City has translated into constant bidding for homes in London North in virtually every selling situation, getting sellers an average of 101.8% of asking. In addition, limited supply like this can limit overall sales and leave unsuccessful buyers frustrated.

So, how are prices?  Remember that North London already has the highest average price. This year, this area has risen again by 7.8% in the last 6 months, or $32,310, to an average selling price of $444,863. 

This aggressiveness should continue if inventories remain well below 6 months’ supply and should deliver an average price between 8% and 10% by year end.  Right now it takes between 15 days and 21 days to put an average home up for sale and get it sold.

Once again, the bidding wars in this area are reinforcing that London North continues to be the most desirable area of London.  The area offers so many conveniences, great schools and the home of University of Western Ontario.

London South

The number of homes that have sold is now down 23% over the same sales period of 2017. This is actually a return to more normal levels. This area is also still very much in a Seller’s market with only 3 to 4 months’ supply of home to sell, based on demand and inventories.  This demand will continue to push prices up. Home owners are consistently getting over asking price.  They are getting on average 102.6% of their asking price. So, what has all this done to the average selling price? 

Prices are up in line with the North at 7.1% or $24,340 bring the average home price up to $366,562. The number days it takes to sell a home in this area has been steadily dropping to where it sits at just 18 days on average at the end of June and dropping.

London East:

The number of homes sold in London East have fallen by 23.8% versus last years record sales as well.  But, there is plenty of good news here. Inventories are well below the 6-month average required for a balanced market. The number of homes offered for sale dropped under 3 months’ supply in February and March and have increased since then to about 3.5 Months.  Because of these significantly lower levels of homes offered for sale, these home owners are consistently getting well over asking prices.  The average for the first six months sits at 102% of asking price.  It now takes 20 days in this area to sell a home.

  

What has this low availability of home for sale done to prices?

Prices in this area are breaking records…Prices are up a whopping 13.2%.  This represents an increase of $33,700 on average bring homes in this area to a new base price of $288,602.  The East is beginning to move.  What an opportunity for First Time Buyers to get into the Market.

  

St. Thomas:

In my opinion St. Thomas continues to be one of the best priced areas of Southwestern Ontario.  It is really a Bedroom Community of London and had all key services including bus services.  The fact that Ford is no longer in Tabotville has little relevance.  St. Thomas is also near Port Stanley, a wonderful summertime destination for food, entertainment and beaches.   The average price of a home in St. Thomas is still lower than Ingersoll currently at $322,838 with much less services and infrastructure. I believe people are beginning to get the message!

Sales this year have returned to normal levels like all other areas, but off only 20.1%. The number of homes offered for sale here compared to demand has been consistently lower than all other areas.  St. Thomas has had an average of only 3 months supply for 5 months in a row.  It takes an average of about 20 days to sell a home in this area.  This limited number of available homes is pushing up prices like the other areas. Home owners have been getting around 101% of their asking price. Again, experiencing multiple bids.

What has happened to prices?

Selling prices for the first six months of 2018 are up a record of 15.2% in this area! Wow St. Thomas is leading the price growth in the area!  This means the average home increased in value $38,307 since January bringing the average home to $290,821.  Still a bargain in any market in Southwestern Ontario.

Summary:

What does all this mean. The market is buoyant and will finish with a strong finish once again. Interest rates are still at record lows. Remember demand is the key. 

Example: If you are a Toronto Area resident about to retire or kids have left for University, or you work from home and are sitting on a home worth even $800,000 and you have a low mortgage… What would you do… Move to Southwestern Ontario! Buy a beautiful dream home for even $600,000 and put close to $200,000 into the bank for a rainy day! That is what is going to continue to drive this market.

I love to point out when the average price in 2004 in Mississauga was $240,000 and London and area were at $200,000.  Logically, which market will experience potential correction, I doubt it will be London and area!

There is no better time to buy your first home, make a lateral move or move up!  If you are thinking of downsizing, wait until the market comes back into balance.

Please share this update with anyone who will benefit…and …. Remember, Mary and I are here to help you, your family, your friends, your co-workers. Call us with their names, timing, phones and email and we’ll get to work saving them money. There are differences between realtors. We are proud of our results and our Friendships with our many Clients.

Gib Heggtveit                           Mary Heggtveit

Broker                                                               Sales Representative         

RE/MAX Centre City Realty Inc                        RE/MAX Centre City Realty Inc

Cell: 519-535-3975                  Cell: 51-535-7355              

Gib@YourFavouriteRealtors.com                         Mary@YourFavouriteRealtors.com

Full Year Market Activity Results for 2017 for London/St.Thomas Trading Area

CITY OF LONDON:

Well, what a year! This was clearly a record setting year for my 15 years of Real Estate experience. Our City experienced a value increase for the average home of 18.3% in one year. The average home rose from $283,510 to $335,607. This new record sale price was driven by an 11.6% increase in the number of homes sold versus 2016. What contributed to these records? Based on statistics it appears that inventories dropped signicantly in 2017 and Buyers from Metro Toronto started capitalizing on their equity across central Ontario.

For statistical purposes it is important to understand what a balanced market is.  A balanced market has 6 months’ supply of homes for sale. A Buyers’ market offers more than 6 months’ supply while an Sellers’ market offers less. inventory in January 2016 sat at 1168 homes (4 months’ supply) for sale and then dropped to 721 homes (2 months’ supply) for sale in January 2017. This represented a 38.3% decrease in supply starting the year. These set things on fire. Over the year it took an average of only 23 days to sell a home.  In December last year this rose to only 35 days.  Home owners received 100% of asking in 2017 versus 98.3% of asking in 2016. This month we are averaging 99.4% of asking (based on 80 sales to January 15, 2018).  We are starting the year with only 3 months’ supply. This means the pressure on “Supply versus Demand” will continue.  When we add in the continued projected interest rate offered below 4% on Mortgage Rates (assuming the Feds increase interest rates next week (even ½%) and continued demand from Metropolitan Toronto cashing in on equity. We can anticipate at least a 5% increase across the city in the year ahead unless inventory of homes increase dramatically. Fewer choices equals higher prices!

LONDON NORTH:

The number of homes that sold in North London rose only 4.4%, based on limited supply for most of the prime selling season. The number of average days it took to sell a home in 2017 was 21. In 2016 it was significantly higher at 34 days. This severely limited inventory drove the average price of a home in North London beating the London average, up 18.1%, up from $345,113 to $407,397 ($62,287). Many home owners enjoyed competing offers. This delivered an overall list price to selling price ratio of 101.1% (up from 98.7% in 2016). Let’s look at supply, we started 2017 with only 2 months’ supply of homes for sale.  By December we sat at 4 months’ supply based on time of year heading into January 2018. Inventory in December 2016 sat at 216 homes.  In December 2017 we finished with 283 homes available for sale.  This is still well below a balanced market.  This would indicate that supply will not pace demand in 2018 resulting good price increases estimated to be above 5% for 2018.  The influence of Toronto Buyers with deep pockets of equity, and continued bargain Mortgage rates bringing First Time Buyers and Move Up Buyers to market, will easily bring these projections to reality.

SOUTH LONDON:

This area like North London started the year with only 2 Months’ supply of homes offered for sale. This limited number of homes available ended 2017 delivering the second highest increase for all areas of the city of London with a 13.2% increase.  This increase drove prices up 17.6% or an average of $56,900. The average house price now sits at $380,000 in the South. Homeowners in this area in 2016 received 97.1% over the calendar year. Last year with this higher increase in demand the difference between listing price and selling price tightened to 98.2%. For the month of January to January 15, 2018, homeowners are getting a healthy 97.7%.   Inventories are a bit higher in South London coming into the new year.  In December inventory hit 4 months’ supply or 488 homes offered for sale.  In December 2016 the carry-over was only 2 months’ supply or 255 homes offered for sale.  The fact that there are more homes to choose from should allow a bit if negotiation on listing price. However, 4 months’ supply is, by definition a Sellers’ Market.  We will see continued price increases. With North London continuing to have limited inventory supply, this will definitely drive prices and activity in London South.

EAST LONDON:

This area of the city has always had the best bang for your home dollar with the lowest average prices in the city.  In 2017 East London delivered the highest increase in homes sold at 18.2% over the previous 12 months. This outstanding result in the number of homes also delivered the highest percentage increase in home values. The average price rose 18.1% or $38,675 and now sits at $252,820 in this area. Home owners were able to get 100% of their asking price in 2017 up from 97.7% during the previous year. The time it took to sell a home dropped from 32 days in 2016 to 24 days in the heated market of 2017. In December 2016 inventory sat at 2 months’ supply of homes for sale, 186 homes listed.  This was a major contributing factor to high demand and increases in prices for this area.  In December 2017 inventories of homes available for sale increased to 3 months’ supply or 266 homes available.  Once again inventories are tight with only 3 months to start things off.  All indicators are that prices will do well in this area of the city again…Should see leading sales volume and price gains driven by the lower average prices in this area.

ST.THOMAS:

In our opinion this trading area offers the best current value for a Home Buyer.  We look at ST. Thomas as a “Bedroom Community” for London. Ideally located south of London and the 401 and just north of the Summer destination of Port Stanley with its beaches, restaurants and bars, St. Thomas has greater infrastructure than Ingersoll Ontario, yet is better located and offers lower average selling prices. That being said, sales in the city increased an average of 8% for 2017. City wide inventory of homes for sale carried over to this area as well, finishing 2016 with only 2 months’ supply available. This limited supply resulted in the average homeowner getting 99.2% of asking price versus 98.1% a year earlier. This would indicate many homes enjoyed competing offers at peak market time. The result, was a 15% increase, or + $33,959, to an average price of $259,983 for 2017. The number of days it takes to sell a home also dropped from 41 days to 27 days.  Inventories of homes offered for sale in December 2016 had dropped to 2 months’ supply. At the end of 2017 the number of homes for sale increased to 3 months’ supply (105 active listings) . This is still lower than the 4 months’ supply (135 active listings) for start of 2016.  This also still positions this area as a Sellers’ Market. Once again we anticipate +5% growth for the area. Sellers are already getting 98.5% of asking above the average for 2016.

SUMMARY:

What to do?

Don’t need to move or upgrade?   Don’t sell! The average Home will enjoy a good increase in value again in 2018.  

However, If you are a First Time Buyer or a Move Up Buyer, TODAY is the best date and time to get moving. BUY! Why?  Interest Rates on Mortgages are still lower today (less than 4%) than they will be by year end. Each payment is going to reduce your mortgage on “your” home and not into your landlord’s pocket.

With prices rising, Move Up Buyer will make somewhere better that 5% on every new dollar that they invest in a bigger home.  That’s +$500 on every $10,000 investment in 12 months. Going from a $400,000 home to a $500,000 home, theyll make +$5,000. Payments will increase, less than +$500 a month.  Where else can you build for the future with tax free dollars like this?

CALL:

Gib Heggtveit or Mary Heggtveit

Broker & Sales Representative

RE/MAX Centre City Realty inc.

Home Office:      519-421-1991

Email:                   gib@yourfavouriterealtors.com

You Market Update for the First Nine Months of 2017 - London, St.Thomas and Area

London/St. Thomas and Surrounding Area:

The strength continues. It has been a year to remember…Sales of homes across our trading area are up 13% on the base of 8700 homes that sold last year. Prices rose further since June 30 and now sit up 17.1% or $49,053 compared to the last 9 months of 2017 to an average of $324,704. Listings of homes for sale during this period only rose 1.1% or 147 more homes listed for sale.  The increase in the number of homes that sold in the same 9-month period was 1131, almost 8 times the increase in the number of homes coming to market.  This represents a 13% increase in sales.

Will things slow down? It does not appear to be happening, this number did not change much with 1391 homes listed compared to virtually the same number of homes, 1379 for September 2016.  With Sales increases of 13% there were over 1100 fewer homes to choose from across our trading area than offered for sale in September last year. The number of homes sold in September increased marginally again, up over last year by 1% and the trend appears to be continuing upward with an average selling price for the month of September 2017 across Middlesex and Elgin hitting $394,700 compared to $337,694 for September 2016.  Sales and number of homes listed this time of year are slower….But…Not slower than last year and homeowners are getting 100% of asking on average. This indicates that many homes are still getting over asking.

City of London:

The increase of sales across the city continues. The number of homes sold, year-to-date, to the end of September is up a whopping 15 % or 757 more homes over the same period in 2016. This momentum continued in September with Sales up again 11% for the month. This increase drove prices up by 23.2% or $64,791 since January of this year to an average of $329,861.  The number of homes coming to market has increased over the last 9 months marginally by 2.1% against this huge sales and price increase environment.   This means the number of home to view is still down versus a year ago.  For example, this past September there were 931 homes across the city to choose from. This was 24.1% fewer homes for Sale than last September. Today is the BEST TIME TO MOVE UP or BUY YOUR FIRST HOME! Prices will still rise. Think about it! A fixed rate 5-year mortgage term today is still below 3.5%, a great deal. The economy is still solid…Toronto buyers may now take longer to sell, but they still want to take advantage of our much lower prices….

London North:

Remember this is a slower time of year. The smaller volume of homes sales is still driven by supply and demand for the season. This area remains the highest price area of the City of London. The average price of a home in this area now sits 20.2% higher at $403,860 for the last 9 months of 2017. In September 2017, 206 Residential Properties sold, up again over last year by 3%. Their average price was $409,251, clearly indicating that the upward trend is continuing. The number of homes sold in the North is up 9.2% above the first 9 months of 2016. current year-to-date inventories are down 4.4% still creating upward pressure on selling prices because of fewer homes to choose from.  The number of homes offered for sale in September was down 5.4% versus 2016. Think about this…291 homes for sale in September and 206 sold. Not much left to choose from? It now takes an average of 22 days to sell a house versus 36 days a year ago and home owners are getting 100% of asking.

Some potential move up buyers have given up their search because they don’t want to be homeless.  This remains a pent-up demand potential area of buyers and sellers. In our opinion this climb in prices is not over yet and the recent hike in interest rates to less tha 3.5 % for a five year finxe rate is marginally higher than last year. Don’t forget that the economy is significantly strengthened.

London South:

The number of homes sold across South London increased 14.7% during the first nine months of 2017 over the same period a year ago. 2,152 homes sold during this time-period. Inventories of homes coming to market to be offered for sale rose by only 3.4%, a shortening of supply of homes to choose from and increased number of buyers continues to drive prices upward. The average home is now selling for an average of $329,450 for the last nine months. This represents an increase in the average value of a whopping 19.5% or $53,637 for the nine-month period.  There were only 365 active homes for sale in the South in September down 25% from a year ago.  With sales in September of 281 homes, it did leave much to choose from.  Prices for the month hit $351,686 on average for these 281 homes.  Home owners are getting 100% of asking on average compared to 98.6% last September.  As stated, this climb in prices is not over yet and a five-year locked-in interest rate below 3.5% won’t change the enthusiasm much.

London East:

Affordability continues to be the driving force in this area. The number of homes sold in the first 9 months of 2017 sits up 22.7%.  The number of homes coming to market for this same period increased only 9% above the same period in 2016. As you can see sales well outpaced the number of homes that came to the market resulting in fewer homes to choose from. The average house price increased 17.7% over the same nine-month period of 2016. The value of this increase was $31,158 for the average home owner for an average price of $247,635.

197 homes sold in September, while there were 278 active listings.  This left a residual of 81 homes left to choose from. Last year in September there were 77 more homes to choose from in September.  All this means that our prices are still rising. A mortgage rate below 3.5% for a five-year locked in term is not by any means a hindrance for the future of this market.

St. Thomas:

We predicted it! The average price in June sat at $240,412 for the last 12 months. The average house price for the 7-month period now sits up 7.1% or $17,877 (for nine months) delivering an average price of $251,190.  Inventories of homes available for purchase remain the tightest in the entire trading area. After nine months the former increase 10% increase in available homes for sale dropped to only 3.8% above last year.  Active listings in September dropped in September 2017 versus a year ago by whopping 43.2%, leaving only 5 homes available for sale going into October in the whole city.  Virtually everything listed sold! These inventory levels should be driving prices through the roof.  Homeowners, over the 9 previous months have been getting an average of 99.6% of asking price compared to 98.3%. In September this jumped to 100% for the month.  If this tight inventory situation for this time of year continues this will only drive prices up further. The average time it takes to sell a house has now dropped to an average of 27 days for the 9 months ending September 30, 2017 compared to 45 days for the same period a year ago.

Comments:

Inventories remain tight and demand continues to be strong.  The increases in the lending rate as predicted are still below 3.5% for a 5-year fixed rate. The Toronto market with selling period back to normal and prices off 20%… We are 300% lower than their average... If you need to drop the price on your resale home in Toronto to $800,000 from $1,000,000, our $344,128 City of London average price will still let you live here Mortgage free and have a bank balance that most of us would dream about…. They are still going to come until our prices get much closer to each other.   Prices will continue to rise and TO-DAY is the best day to move up or buy your first home.  Remember, there are several strategies for making a purchase in this market.  First the house must “appraise” to get a bank to finance.  If you bid $50,000 over asking, you must have the difference between the appraised value and the bid price if you are using a down payment based on a CMHC insured mortgage. 

Moving up this is not a problem because of equity and “Cash” offers are always the best strategy. The major concern is finding appropriate month to month accommodation until you find the right home. Sublets are your best option.

For 1^st time buyers there is considerable risk if thinking of cash offers…Best advice is set reasonable goals for that first home…You can always move up when you build equity. Now that things are quieter and bidding wars are not as frequent it is a great time to move forward.

Sometimes a good approach is to try and submit a backup offer after another bid has been accepted.  The number of offers falling apart has been increasing because ill-informed buyers can’t come up with the difference between bank valuation and what they as the Buyer offered.

We are here to help with strategy to approach this market in a meaningful and productive way.

With Sellers, we are proud of our Listing Marketing Program and are well equipped to maximize exposure to get the “highest” and “best” selling price possible in the shortest time possible from this market.

Want to know what your home is worth?  Call us for a market update.

Gib Heggtveit – 519-535-3975

Broker

Mary Heggtveit – 519-535-7355

Sales Representative

Email:            gib@gibandmary.com

                        mary@gibandmary.com

RE/MAX Centre City

Your 6 Month Market Update for London, St. Thomas for 2017

London/St. Thomas and Surrounding Area:

It has been a year to remember…Sales of homes across our trading area are up 21% on the base of 3206 homes that sold last year. Prices rose 15.6% or $44,966 compared to the last 12 months (July 1 2016 to June 30, 2017) to an average of $336,622. Listings of homes for sale during this period only rose 4% or 187 more homes listed for sale.  The increase in the number of homes that sold in the same 6-month period was 675, almost 4 times the increase in the number of homes coming to market. 

Will things slow down? In the month of June this number was offset a bit with 1017 homes listed compared to 890 for June 2016 adding 127 homes to the number of available homes for sale. The potential effect was significantly minimalized by an increase in sales in June of 85 more homes than last year adding only 42 more homes for sale across our entire trading area.  The trend appears to be continuing upward with an average selling price for the month of June 2017 across Middlesex and Elgin hitting $367,647 compared to $308,141 for June 2016.  The pressure is still on…. Remember, June is traditionally the biggest selling month of the year...

City of London:

The Sale prices reflected in this section are Year-to-Date. All other sections are 12 month average prices and therefore include 6 months of prices from a lower 2016 market.

Here is a look at the City itself for the first 6 months of this year.  Rather than looking at the average price for the last 12 months we are now going to look at the average for the last 6 months only trying to get a better handle on recent activity. The average home in the city of London is now selling at $384,511 (6-month average). This represents an increase of 22.1% year to date or $69,633 for the average home.  To try and predict the future, we need to look at Supply and Demand. A ¼% increase in the lending rate this month and perhaps a further ¼% in October will not really affect Buyers, moving up, or buying their first home in our market.  The average price of a home in east London @ $252,066 or St Thomas @ $240,412 is still very affordable. Supply is another story, we finished this first 6 month with 705 homes actively offered for sale in London. Last year at the end of June we had 1013 homes for sale. This is a further reduction coming into July of 30% fewer homes to choose from across the City of London.  The average home owner got 105% of asking price during this six-month period.  It will continue...Think about it! A 3.5% fixed rate 5-year mortgage term offered around year end in 2017 will still be a great deal. The economy is still solid…Toronto buyers may now take longer to sell, but they still want to take advantage of our much lower prices….

London North:

This area remains the highest price area of the City of London. The average price of a home in this area now sits 19.9% at $433,365 for the last 12 months (July1, 2016 to June 30, 2017). In June 2017, 206 Residential Properties sold. Their average price was $476,405, clearly indicating that the upward trend is continuing. The number of homes sold in the North is up 10.4% above the first 6 months of 2016 Sales for the month of June were marginally lower than last year. But current year-to-date inventories are down 7.4% still creating upward pressure on listing.  Inventory in June we up marginally by 1.7%, not enough to impact this demand. Some potential move up buyers have given up their search because they don’t want to be homeless.  This remains a pent-up demand potential area of buyers and sellers…In our opinion this climb in prices is not over yet and a 1/4 % hike in interest this week won't change much...Don't forget that the economy is significantly strengthened.

London South:

This is the area of the city with the most sales of homes since January 1, 2017. Prices in this are up 16.4% based on the average of the last 12 months.  This means the average home in this area has increase by $51,385 and now sits at $369,613.  There were 208 sales of homes in the South in the month of June 2017 with an average selling price of $399,913. Once again, a reflection of a rising market.  Inventories in the south are a bit better delivering an increase of 10.6% since the 1^st of January 2017. With more to choose from, this increase helped increase sales throughout the area. Sales are up 24.3% on a year-to-date basis.

As stated, this climb in prices is not over yet and a ¼ % hike in interest rated this week won’t change the enthusiasm much.

London East:

Based on affordability this area has enjoyed a 27.4% increase, this is the highest year-to-date increase in the number of homes sold in the City. The average price of a home in this area rose 12% over the last 12 months by $27,049 to $252,066.

Inventories rose 10% for the same period.  This means inventories are now significantly diminished based on the increase in the number home sold in the same period (27.4%). This climb in prices is not over yet and a ¼ % hike in interest rated this week won’t change much.

St. Thomas:

This is a market that should see significant price gains in the next few months.  Inventories are the tightest in the entire trading area. They did increase in number of available homes for sale by 10% over the last 6 months.  But to really put things in perspective we need to look at total sales versus total number of homes listed for sale since January.  All residential homes listed for sale = 563, all residential homes sold = 504. Virtually everything listed sold! The average price for the last 12 months rose 10.2% or $22,101 to $$240,412.   There were 107 homes sold in June, the average price of those homes was $272, 255. All of this indicates that St. Thomas will see an average year end price increase of around 20% for the Calendar year 2017.

Comments:

Inventories remain tight and demand continues to be strong.  2 projected increases in the lending rate of ¼ % will only bring mortgage rated to around 3% or slightly above. The Toronto market has cooled in volume and prices may adjust slowly downward… We are 300% lower than their average... If you have to drop the price on your resale home in Toronto to $1,000,000 from $1,100,000, our $384,511 City of London average price will still let you live here Mortgage free and have a bank balance that most of us would dream about…. They are still going to come until our prices get much closer to each other.   Prices will continue to rise and TO-DAY is the best day to move up or buy your first home.  Remember, there are several strategies for making a purchase in this market.  First the house must appraise to get a bank to finance.  If you bid $50,000 over asking, you must have the difference between the appraised value and the bid price. 

Moving up this is not a problem and Cash offers is the best strategy. The major concern is finding appropriate month to month accommodation until you find the right home. Sublets are your best option.

For 1^st time buyers there is considerable risk if thinking of cash offers…Best advice is set reasonable goals for that first home…You can always move up when you build equity. Remember the average selling price is currently about 10% over asking based on recent sales and the area.

Sometimes a good approach is to try and submit a backup offer.  The number of offers failing is on the increase because buyers can’t come up with the difference between bank valuation and what the Buyer offered.

We are here to help with strategy to approach this market in a meaningful and productive way.

With Sellers, we are proud of our Listing Marketing Program and are well equipped to maximize exposure to get the “highest” and “best” selling price possible in the shortest time possible from this market.

Want to know what your home is worth?  Call us for a market update.

Your Year End Market Update for London, St. Thomas and Area.

Our Trading Area:

Get ready for another ripping year of price increases in our Trading area.  The average price of a home finished the year up 6.6% or $18,590 across all communities served by London St.Thomas Association of Realtors. The average home now sits at $299,646.   The North side of London enjoyed the highest increases which we will detail below.

The most important question to ask is “What is most likely to occur in 2017?”. The answer to this question is based primarily on “Supply” and “Demand”.   Let’s look at just December (slowest month of the year) for Residential homes in London as an example (our largest trading area). Sales dropped 3%, relatively flat with a total of 231 sales across the City. At the same time, there continued to be upward pressure on prices due to a significant decrease in availability of homes to choose from.  The inventory of homes to choose from was down 34.5% for the month. This drove prices at the same time up by $21,076 over last year with home sellers getting virtually full asking price (in 2015 it was 96% of asking price).. The number homes available for sale on December 31, 2016, for the start of the new year, dropped 42.6% from last year. In every trading area outlined below, more homes were sold in December than came to market and offered for sale in the same period, further eroding what is available to choose from as a Buyer.  This will drive significant upward pricing starting in January 2017 unless everyone starts to think about selling. That is not likely to happen. Be prepared for a wild ride on price increases in Southwestern Ontario. Prices increases should be higher than realized during this last 12-month period.  Even if Interest rates rise 1% they continue to be a bargain compared to the historical 10% levels.

North London:

My prediction of a 10% increase by the end of 2016 came awful close.  As of December 31, 2016, based on the last 12 months, the average home in North London is now worth $378,059 which is 9.0% above last year’s average.  This means the average homeowner has enjoyed an increase in value of $31,369. The number of homes sold across North London, for the first twelve months of 2016, has increased by 11% over the year before.   The inventory of home offered for sale has really fallen versus the same period a year ago, it is now down 12%. This will put huge pressure on prices causing them to increase significantly again in this popular area of the city. The average home price in the month of December rose over $400,000. The number of homes coming to market for sale for this December dropped 36% over what was listed in December 2015.  Sales for the month were off marginally by 6.7%. Obviously, impacted by the significant decrease in the number of homes to choose from. With inventories, still below 2015…Prices will continue to rise and bidding wars can occur if priced properly.

London South:

As of December 31, 2016, based again on the average increase over 12 months, our selling prices rose 6.2%. The average sale price now sits at $324,581. This represents an annual increase in value of $18,874 for homeowners in the South.  The number of homes offered for sale dropped during the first 9 months of 2016 by 8.1%, further limiting the choices available for buyers.  Sales rose, as well versus this same period a year ago, by 3.6%.  Homes coming to market in December were the same as in December 2015. In my opinion, the rise in prices of homes will continue driven by limited supply.

London East:

Once again looking at the average increase in the cost of a home over the last 12 months, prices rose 2.6% or $5,893. The average sale price now sits at $228,158 across the East of London. The number of homes sold for the first 9 months of 2016 increased as well, rising 5.1%. During this same period the number of homes being offered for sale dropped significantly by 7.0%. The number of homes being listed for sale is continuing to drop.  In the month of December, the number of home coming to market dropped again by 12.4% Prices should continue to rise, as the reduced number of homes available continues to put pressure on upward prices. It continues to be the most affordable area in the city.

St. Thomas:

Prices in St Thomas have risen 6.1% or $12,863 on an average house selling price of $224,340. This is based on 12 months of sales history.  Homes offered for sale are continuing below last year with the number of homes that were listed for sale during the 12-month period dropping 10.7%. The number of homes sold during the 12 months increased as well by 3.9% above last year.  The tight supply of homes offered for sale is continuing for the overall trading area. St Thomas inventory during December remained flat versus December 2015 at 35 homes added for sale. Sales for the month were also flat versus December 2015 while the average selling price rose nicely to $241,202.  Remember this is only the sales in December, the slowest month of the year.  It does indicate a good year ahead.

Summary:

Finance Minister Charles Sousa said first time homebuyers won’t pay any land transfer tax on the first $368,000 of a purchase price after January 1, 2017. has increase the exemption for Land Transfer tax for first time home owners to $4000.  (typically, about 1% of the purchase price).  The Federal Government continues to offer the equivalence of a basic Lawyer’s fee as a rebate at tax time for a first-time buyer. Interest rates are still below 3%

Toronto Buyers are spreading their wings and moving out across South Western Ontario…Remember they can buy their home of their dreams here and bank the difference for retirement.  This is and will continue to cause bidding wars over our homes. If you are thinking of liquidating or downsizing… ”Don’t Do It” now! Wait another year!  You will be pleased you did.

I’ve said it before and say it again …There is no better time than “TODAY” to buy your first home! There is no better time to Sell your existing home than “TODAY” to make that move to a “larger” home.  Be prepared to bid on the house you want. At the same time, there is no worse time to liquidate or move down, as prices will continue to rise. Call us today if you or someone you know can benefit from our help.

Gib & Mary Heggtveit                                     

519-421-2626

www.YourLondonRealtor.com

gib@yourfavouriterealtors.com