The combined London and Saint Thomas real estate market has reached residential home sale highs not seen in a decade in the area. Throughout the year, the local market has been performing exceptionally strongly. Although July of 2017 is only slightly outperforming the previous year, the year-to-date sales paint a larger picture of an extremely healthy market in London. Through to the end of July, the year-to-date sales in the area are up 19.7% compared to 2016.
Overall, there were 1,002 residential properties sold in the London metropolitan area during July. This was 1.2% higher than 2016’s figures, and only 7 homes shy of breaking the all-time record. The condo market in particular has been accelerating quickly. The 209 condos sold in July represent a 14.2% increase compared to last year. Detached homes have decreased in sale volume slightly, dropping 1.7% compared to last year.
Listings Increasing in the London Area
The growth in activity in the London area is being accompanied by an increase in listings as sellers try to capitalize on an active and growing marketplace. At the end of the month of July, there were 1,449 homes listed for sale throughout the London and St. Thomas region. This is 15% higher than the active listings that were available at the end of July of 2016. However, the increased sales activity over the year has still resulted in a very small overall amount of inventory in the region. With well under 2 months of active inventory on the market, London is becoming a very competitive market for buyers shopping for a new property.
Year to Date Pricing up By Significant Margin
Month-to-month or year-to-year pricing trends compare a very small sample of sold homes, which means that the averages can be affected by a small number of outliers. However, by the midway point of the year, year-to-date comparisons can give a much more comprehensive view of pricing trends in a given market. In London, the trend is definitely moving upwards. The year-to-date average price of all residential homes sold through to the end of July was $330,718. In 2016, that average sat at $279,057, meaning that home prices over the first seven months of the year have risen 18.5%.
With inventory levels staying low and sales interest remaining high, London should prove to be a growth market for some time to come. Pricing in the city and surrounding area is starting to reflect the demand for homes in the area, and while increasing mortgage rates and tighter regulations may dampen activity somewhat, the low prices relative to other major cities in Ontario should continue to encourage activity in the London market.
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