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Real Estate Market Outlook London Ontario 2018

By June 18, 2018 No Comments

The number of buyers driving the market is on the rise, from young professionals to baby-boomers. Real estate makes a huge contribution to growing the regional economy, generating tens of millions of dollars in London and St. Thomas in the past year. With more people coming to London and purchasing real estate, the future of London’s economy remains bright, benefitting sellers and buyers alike.

  • London is in a solid seller’s market with sales to new listing ratio at 75.1%, which means that 75% of all new listings within the month calculation have sold.
  • Average sales price in London was a record breaking $343,000 in February, up 10.8% over the same month last year where the Canadian average is 7.7%.
  • The London and St Thomas Association of REALTORS® (LSTAR) announced 1,171 homes were sold in May, down 24.4% over the same time last year, which saw a record-setting month for May with 1,549 homes sold.
  • While inventory levels are some of the lowest the region has seen in the past ten years, average home sales prices across London continue to rise, with an increase of 8.6 percent since last year.
  • Sales to new listings ratio: immensely favors sellers with London having a ratio of 75.1 percent where 40-60 percent is considered balanced.

“Thank Toronto for London’s hot housing market” — Economist.

  • Spillover from Toronto boosted the market, not local growth. An influx of foreign buyers drove up prices in Toronto in addition to the tax increment.
  • Real estate makes a huge contribution to growing the regional economy and has subsequently generated more than 40 million dollars in London and St. Thomas.
  • Interest rates remain low, increasing affordability and allowing would-be renters to invest in a property of their own.
  • Baby boomers continue to keep the market active as they downsize into condominiums or properties where they can ‘age-in-place’.
  • Out-of-town Buyers are entering London’s market. Recognizing the value of properties in London relative to other major cities in Canada, many are purchasing property in London as an investment, or even relocating to improve their quality of life from cities where real estate values are less attainable.
  • The strength of the market can be attributed, in part, to the simple fact that more people are living here, and more people are purchasing real estate.

The following table is based on data taken from the CREA National MLS Report for April 2018 which provides a snapshot of how average home prices in London and St. Thomas compare to other major Ontario and Canadian centres.

Canada

23%

$471,450

Windsor-Essex

14%

$289,548

London St. Thomas

17%

$356,447

Edmonton

18%

$368,567

Ottawa

20%

$400,491

Niagara

21%

$410,234

Calgary

23%

$461,375

Kitchener-Waterloo

24%

$479,497

Hamilton

27%

$548,411

Victoria

34%

$686,873

Fraser Valley

37%

$750,559

Toronto

37%

$751,068

Vancouver

52%

$1,020,126