Prediction 1 of 7
Over the next few days, we are going to unveil The Price Real Estate Team’s 7 predictions for the 2017 London Ontario real estate market.
Continuation of Seller’s Market
In simple terms, a seller’s market is when there is more demand for housing than there are houses for sale. This means we see higher sales prices, as we typically see more than one offer on the home. This in turn means sellers get the bulk of the leverage on their side, and is preferable for sellers. Unless we see a significant influx of listed properties for sale, we will continue our pace in a seller’s market. At the end of 2016, the London St. Thomas Association of Realtors reported 8.5% fewer listed properties this year in London than in 2015. Heading into 2017, the association has 25% fewer listings than it did to start 2016. Percentages are great, to show you the real numbers, at the end of 2015 we had 4,376 homes for sale, and at the end of 2016 we had about 3,300. Over a thousand less homes for sale. The exact final numbers aren’t in yet, that will be close enough for our purposes. Add on top of that, the most residential home sales in London’s history, made for a perfect storm.
So what types of things contributed to these sales numbers? London is extremely popular internationally, for immigrants as well as students attending Western and Fanshawe College. Knowing their children (at Western) will be here for 4 years anyway, a lot of parents will invest in real estate, and rent out extra rooms to their childs friends or classmates instead of paying for residence or an apartment. London’s affordability with an average house price just shy of $300,000 compared to the Canadian average topping $480,000 makes London more and more inticing to remote workers, while still being in a large city. The big one showing up is the influx of Toronto buyers, which we will get into in our next prediction. Prediction 2, Influx of Toronto home buyers.