Thoughts Archives - Millstone Homes

Category: Thoughts

April 5, 2023 Thoughts by Millstone 0 Comments

London Ontario Spring Market Outlook

We can’t pretend to have a crystal ball and make any hard and fast predictions, but barring a significant recession (in January the worry was further interest hikes), the fundamentals make a strong case that the bottom is in and that London is poised to recover quickest nationwide. Here why we think this is the case:

Unprecedented price drop, faster and further than the rest:

Even though prices are still at least 33-50% higher than pre-pandemic levels, the largest average home price drop in its history saw London and St. Thomas had a higher percentage decline in average home prices than all major Canadian cities. It also has a relatively lower number of home sales, with a decline of 45.8% compared to the previous year.

Based on the information provided in the table, London and St. Thomas have an average home price of $583,500 in February 2023, which is below the national average of $662,437. The region has also experienced a significant decrease in average home prices over the past year, with a 25.1% drop, which is higher than the national average of an 18.9% decline.

Prices have started to level and have turned in February

As predicted in our last Outlook, both the sales activity and average price drops had begun to soften and showed signs of turning, now that has been confirmed with the first average price increase of 6% month over month in February. Speaking for London and St. Thomas markets specifically, we are calling this range the bottom. With continued recession fears and high interest rates we don’t see a significant price pop until next year, but if you’re a buyer it doesn’t make sense to think that your killer deal is coming in the winter.

Market fundamentals are driving even more demand

The housing shortage hasn’t been touched as home sale volumes are still at historic lows, so demand is still at a historic high. As of last year, London is the fastest growing city in Ontario. With Canada’s population hitting a record growth last year, London’s has been predicted to grow at an unprecedented rate for the next 50 years.

London’s unsexy economy is now a national leader

The pandemic recovery saw the London region’s economy grow at a faster pace than all other southern Ontario cities, and downtown core recovery leads the nation. Without the exodus of tech jobs plaguing other cities, the diverse nature of the local economy will continue to weather 2023’s rough patch.

Affordability relative to the rest

Looking at where we’ve landed with current province-wide prices, London’s lower average home price puts it back in a competitive position, and has kept demand for new homes from falling further.

CMHC reports that once interest rates stabilize, home-buying demand should return, putting upward pressure on prices again this year. Renters boxed out of the ownership and those waiting on the sidelines for market conditions to stabilize, will be leaping in markets like London first, where there is far more value to be had compared to higher priced regions. It might be a good idea to start comparing home builders that are now pricing fairly in the current market, as any new developments coming online in the latter half of next year will be on the rise again in 2024.

Every homeowner’s finance and lifestyle is their own, but one thing is certain regardless of market conditions- working with a builder that will provide the most value for your investment at the time both in the lot and the build is key.

January 16, 2023 Thoughts by Millstone 0 Comments

Buying a New Home in 2023: Myths and Misconceptions

Many first-time homebuyers may avoid the idea of buying a new home, due to the common misconceptions that it will be too expensive and take too long to complete. However, buying new construction is different from purchasing an existing home, and these misconceptions may prevent potential homebuyers from considering a viable path to homeownership that could be beneficial for them.

Here are some of the new home myths and misconceptions that should be considered before making assumptions that can affect your lifestyle significantly.

1. New construction homes are more expensive

While the upfront cost of new construction homes may be higher than older homes, it is important to consider the total cost of ownership and value of features and finishes included. A new home comes with a brand-new roof, appliances, HVAC equipment and major systems, which may not need to be repaired or replaced for a long time, saving the buyer from additional costs. Additionally, new homes often have energy-efficient features, which can lower utility costs over time. Therefore, it is important to consider all costs and factor in the remaining life expectancy of the components in a pre-owned home to understand the true cost of ownership.

2. It’s harder to finance a new home

This is actually false, a new home may actually be easier to finance than an older home as there are more options in some cases. Builder incentives and the lower risk associated with buying new construction can make the process smoother. Builders often have relationships with lenders or subsidiaries whose primary focus is to help borrowers find better lending options. Smaller builders that do not have an affiliated lender will typically work with a local mortgage broker to assist buyers in securing loans.

3. New-construction homes are of poorer quality than pre-owned homes

New-construction homes are subject to the latest building codes which have become more stringent over time. New homes are required to meet improved electrical wiring requirements, higher insulation requirements, more efficient air conditioners and improvements in plumbing, among other things. Additionally, construction principles do not change whether it is a new or pre-owned home, as the house will be built to a requisite standard, likely outdated ones in the case of older homes. It’s up to you to understand the hundreds of design and construction details and compare them to current building standards when considering an existing home. Buyers can conduct home inspections and see construction details first hand even before settling on a builder. Buyers can also periodically inspect the home throughout the build, giving them and their inspector a better understanding of the home’s build quality, and of course, the pre-delivery inspection.

4. New homes lose their value faster than pre-existing properties

As an appreciating asset, new-construction homes will generally appreciate in value even before their buyers have moved in. Unless in the middle of a housing downturn, pricing in a new community will increase as the homes are sold and usually another spike in value once the entire community is completed. Viewed from a real-estate investment perspective there are very many location-specific factors that impact your home value, not to mention your specific project costs. Becoming familiar with local real estate values and trends is important but not overly difficult or as complex as an agent or uninformed friend may infer.

5. New-construction homes lack character

The value builders place on aesthetic qualities can vary wildly, as does the nature of the service they provide. Some builders build homes on spec with predetermined specifications, while others allow for a variety of selections and upgrades, or go even further to create a highly tailored experience and involve you in every detail of the process. It’s important to research the builder’s portfolio as well as their design staff before making a decision. Generally speaking, a timeless character is a result of how well the designer purposefully executes a theme that’s consistent across the entire home.

6. You’ll be waiting a long time to move in

Construction of new homes can take on average about 6-8 months from start to finish. However, this does not necessarily mean that buyers will have to wait that long to move in. Many builders start construction on spec homes before having a buyer, which means that the construction of the home may be well underway or even completed before a buyer makes a purchase. If you want to avoid waiting, you can check if there is a spec home available.

7. You need to work with a Realtor to buy a new home

A new-construction is similar to any other real estate transaction, there might be an opportunity for you to negotiate on the price, contract terms, add-ons, completion date, and other incentives. The beauty with a new home is that you can very transparently compare apples to apples across multiple options. Having a real estate agent can help or add bias, but slightly more so with new construction deals as they may lean towards a builder they are familiar with or benefit them the most.

We’re happy to discuss any of your concerns or questions as well as help inform your home buying research regardless of what stage you’re in.

December 6, 2022 Thoughts by Millstone 0 Comments

London Homes Real Estate Market Report Forecast 2022/2023

Taking stock of the tumultuous, quite unprecedented London Ontario real-estate market means pausing for a breath and zooming out a bit to gain a bit of perspective as we head into 2023. Cutting through all the noise and looking at the data, we can see that even though this year’s painful price drop was large and fast, homes are still priced 40% higher even after popping the pandemic bubble.

Consensus seems to be that we’ve seen the most of this correction, and with that behind us, at worst there will be further softening into the spring depending on local market conditions. The first resale increase in eight months occurred in October across Canada to 424,600 units (seasonally adjusted and annualized). This potentially signals market activity is nearing a bottom after sliding 36% over the previous seven months. Not to conflate market activity with values, property values have also fallen the least since May, possibly marking the latter stages of this downturn. It’s the interest rates that complicate things further.

It shouldn’t be a surprise that uncontrolled spending will cause issues, as it shouldn’t to realize cost of ownership can double with the interest rates that have rocketed to try to control inflation. It may have been cheaper to own a home in 2019 than in 1996, with average values at $199,857 resulting in a monthly mortgage payment of $1,525.34 under the eight percent interest rate. Fast forward to 2021, average values of $639,745 would result in a monthly payment of $2,709 under a two per cent interest rate. That’s a tripling in home value with mortgages only growing by half.

And while the short-term picture may seem murky, the fundamentals of the London market have not changed. The housing shortage is still dire, and historic immigration levels coupled with London remaining more affordable than communities closer to the Greater Toronto Area, pent up demand is only getting worse. The rebound depends more on when the Bank of Canada ends its aggressive run-up of interest rates more than anything else.

CMHC reports that once interest rates stabilize, home-buying demand should return, putting upward pressure on prices again by summer. Renters boxed out of the ownership and those waiting on the sidelines for market conditions to stabilize, will be leaping in markets like London first, where there is far more value to be had compared to higher priced regions. Forecasts range from a 2-8% rise in average home prices nationally in 2024. This would mean home values in markets like London’s should be seeing that kind of growth starting in the latter half of 2023. With lead times for new homes being what they are, it makes perfect sense to start shopping with home builders that can now price fairly in the current market conditions, as with any new developments coming online in the latter half of next year will be on the rise again. Every homeowner’s finance and lifestyle is their own, so it doesn’t make sense to generalize, but one thing is certain regardless of market conditions- working with a builder that will provide the most value for your investment at the time both in the lot and the build is key.

Some links for your reference:

https://wowa.ca/london-housing-market

https://www.mortgagesandbox.com/london-real-estate-forecast

https://thoughtleadership.rbc.com/beginning-of-the-end-for-canadas-housing-market-downturn/

https://www.cbc.ca/news/canada/london/london-ontario-real-estate-1.6384182

https://london.ctvnews.ca/london-ont-housing-market-in-flux-1.6072266

November 22, 2012 Thoughts by Millstone 0 Comments

We Might Just be Unmatched in Tile Design too…

When it comes to tiled surfaces, attention to detail means even more than meticulously edited selections. Not only can material, color and texture make the difference, the way they are laid (though often overlooked) adds character to a space. In this bathroom, 6 by 24 porcelain is laid in a herringbone pattern on the floor and the movement created by the pattern is continued up the wall behind the tub. The mosaic on either side ensures that the pattern is not over-done.

A very subtle but strong way to communicate a modern edge in this ensuite was the modern grid pattern that results in the grout line across the floor and up the fully tiled wall. The stacked tile was laid in a specific grid across the entire surface. Though planning is required to ensure proper proportioning, we think it’s worth the effort.

Even traditional material like this honed limestone can be stacked (known as “Stacked Bond”), and when paired with a contrasting grout, it’s a stylish update on a traditional material. The tile size was too large for the powder room space, so cutting it down off-centre was the secret here. Alternating runs of tumbled limestone are accentuated by dark grey grout. Grout can be more than a ‘tile matching exercise’, use it to tie in the rest of the colour motif.

The classically charming white bathrooms, with their light cabinetry and Carrera Marble are pretty timeless… But nothing beats the breathtakingly romantic effect of mother of pearl mosaic, paired with creamy Asian White Marble, and properly lit – a fairy tale ensuite.

This incredible bonded stone mosaic was also placed horizontally on the backsplash and the floor to ceiling fireplace surround.

While on the subject of extraordinary tile, we can safely say that we’ve commissioned some of London’s ‘highest end’ custom mosaic, resulting in thousands of hand-cut pieces of marble, and breathtaking spaces.

Your home is the space you live in; it’s where life happens. These are the details that make life a little better every day.

November 21, 2012 Thoughts by Millstone 0 Comments

Our Latest in Wickerson Woods

The office to the left of the entry features a solid wood built in, paneled wall and solid wood coffered ceiling. No painted MDF in this impressive office, true, stained and varnished oak throughout.

The beautifully adorned dining room (connected conveniently with a butler pantry) features moulded trim, wall and ceiling treatments, as well as specialty reflective wallpaper in the ceiling portion trimmed above the chandelier, a play of light that creates a great atmosphere as daylight fades.

Mud rooms are the usual entry point for homeowners, and even as a laundry it was conceived to be more than just functional- should it not be a welcome for the most important guest, namely the homeowner? To this end, the entire laundry head wall is covered in a beautiful tiffany glass mosaic, the laundry machines are topped with a wood countertop and matched kitchen cabinets. Welcoming indeed.

Just like the rest of the rooms in the homes, we approached the powder room as another opportunity to create a memorable experience (for the right reasons of course). With only ambient lighting, black upholstered wall and beautiful vanity, this sultry room was referred to as our “Victoria’s Secret powder room”…

The main living area surrounds a two-way fireplace. Far from ordinary, the fireplace surround is floor-to ceiling height, clad in basket weave carved marble mosaic.

The kitchen is truly a showpiece we are proud of. With juxtaposing components of modern and traditional, no detail was overlooked to give this kitchen its timeless character. The wall-to-wall stainless steel hood is quite the statement, and it also hides 2 drop down storage compartments- one of the many clever features that would delight even the most James Bond-esc. The mother of pearl backsplash is not only back-lit (mounted on translucent panels), it also slides to reveal glass shelving. All lower cabinets with their transitional styling and attention to detail like the unique toe-kick details tie in the kitchen pieces. The large island is mounted on legs (even though it holds the dishwasher) to give it the look of a distinct piece of furniture. With it’s multiple drawer doors, brass and glass hardware, it truly plays the part. All topped by a custom cut slab of granite. 3 times the usual thickness, the beautiful edge profile is machined out of the same slab, not glued on, as is the top sink drainage section. The mirrored dresser opposite is designed in the same spirit, a distinctive piece of furniture. Behind this large dresser lies another story altogether. Open the right door and drawers, and it’s actually your Sub Zero bult in fridge. Open the right door and walk right into the spacious pantry. Execution is key to the many complex issues that were solved to build such a unique space, built to last, with quality components and hardware.

Upstairs, spacious bedrooms are topped with beautiful light fixtures, and large windows reveal the tops of mature trees in the backyard.

To the right off the master bedroom, a walk in closet is lined with built in storage units and granite-topped island. To the left is an ensuite that is nothing short of a private haven.

“Spa bathroom” is overused to the point that it means absolutely nothing anymore. To truly create the spa resort experience we distilled all the components of a spa resort into an ensuite bathroom, yet fit it in with both size constraints and design vernacular of the home. The main components of any spa resort are:

1. Whirlpool (hot tub)
2. Dry sauna
3. Wet sauna (steam room)
4. Exercise equipment
5. Vegetation
6. Running water

We’re proud to say that all of these components are incorporated in this true spa ensuite:

1. The marble skirted Jacuzzi is dramatically free standing.
2. A fully built-in, cedar-lined sauna sits next to the shower.
3. The fully glass enclosed marble shower features a steam generator and bench.
4. Space specially allocated across from the full height vanity mirror includes wall fasteners for resistance-type exercise equipment (such as the TRX). Check the bottom right vanity drawer after you purchase this dream home, we’ve included one of course.
5. The boxwood covered wall adds the vegetation component effectively, while being stylishly timeless.
6. The wall fountain adds last vital detail; the soothing sound of a trickling water.
The beautiful custom ordered light fixtures and double vanity all work with these concepts to create the ultimate ensuite experience, yet quietly saying true to the overall home stylish motif.

We’re proud to say that all of these components are incorporated in this true spa ensuite:

November 19, 2011 Thoughts by Millstone 0 Comments

Details Details

Millstone Homes pays attention to the most trivial detail – we use a double garage seal that hides the awful appearance of screws, even for our OakSeries Homes in Westfield Village. We like the clean smooth finish which is more pleasant to see pulling into your driveway.

November 18, 2011 Thoughts by Millstone 0 Comments

Thoughtful Touch #102

One of the many features we love in this kitchen is the way it wraps around the wall into the servery, which features a separate sink, and walk in pantry. What makes this walk in pantry unique is the entrance being part of the kitchen cabinetry. Open the “big cabinet door” and voila, you’re in the pantry…

November 16, 2011 Thoughts by Millstone 0 Comments

Thoughtful Touch #101

Certain details cost time and money, both of which are endangered species when it comes to builders trying to save on both. We like to think we’re one of the few London home builders that like to go that extra mile in thinking things through and giving a little more. Door switches are one of them. If you’re ever in a Millstone Home and you open a pantry door, don’t look for the light switch. The lighting is door-activated.

November 14, 2011 Thoughts by Millstone 0 Comments

7 Months Later…

Most builders will paint the garage door frame; it’s the normal thing to do. We don’t like to build normal. So, our exterior door frames are always clad. Metal wears a little better than painted wood. Below are images of 7 month old garage door frames.

November 13, 2011 Thoughts by Millstone 0 Comments

Gorgeous in Wickerson Woods

It started with a ’boutique builder’ building a home for himself in Wickerson Woods; it ended in what you see in the images below. Before he moved in however, a lucky couple toured the home and fell in love. They needed one just like it, but a quick closing was required.

The big hearted house craftsman did what was noble and nice. Now the lucky homeowner is enjoying features like walls completely covered with marble and stone, a stunning kitchen with countless cabinets, and impeccable transitional styling. Accents like the touch activated kitchen faucet are characteristics of the builder’s work.

Contact Info

Follow Us