A improving job market and increasing numbers of first-time home buyers have begun invigorating the London area’s real estate market, causing it to outshine the rest of
Southwestern Ontario.
Communities such as Windsor,
Kitchener-Waterloo, Hamilton and Ottawa have fallen behind. London-St. Thomas has racked up
12 consecutive months when home sales have outstripped the same month
in the previous year.
"It’s all about revival in the London economy
and continued low mortgage rates," said Carl Vandergoot, president of the London and St. Thomas Association
of Realtors (LSTAR). “People are gaining more confidence in the London economy, and that
allows consumers to make the move into purchasing a home. I think most
of the bad news is behind us.”
Anthony Passarelli, a regional analyst for Canada Mortgage and
Housing Corp said "a brutal winter got 2014 off to a rough start but
prompted pent-up demand in the spring that was sustained by solid job
growth that kicked in by the fall. Jobs growth is stimulating demand, especially for first-time buyers
in the lower price ranges. People with a steady job and down payment are
coming off the sidelines.”
The number of homes sold in London-St. Thomas in April improved 15.3% compared with April 2013.
LSTAR reports 964 homes sold in April, including 776 detached and 188
condos. Vandergoot said it was the best sales total for an April in
five years.
The average price for a detached house was $278,094 while the average price of a condo for the same period stood at $184,982.
The average year-to-date price for all home types in London-St. Thomas is $259,704, up 2.2%.
Sale listings were up 5.4% in April while inventory were down 0.2%.
"The London-St. Thomas market continues to be balanced between buyers and sellers," Vandergoot said. “However, supply does seem to be tightening up a little, meaning that
if anybody’s thinking of listing their home, now might be an excellent
time to do it. Prices
are still much lower than most large Canadian cities, attracting
outside investors and retirees who see London housing as a good value"
London and St. Thomas Home Sales
(increase over same month in 2014)
|
2015
|
2014
|
|
April 964 (15.3%)
|
December 475 (14.7%)
|
|
March 769 (15.5%)
|
November 577 (4.7%)
|
|
February 535 (7.4%
|
October 698 (8.4%)
|
|
January 475 (24.3%)
|
September 682 (11.1%)
|
|
|
August 791 (13.6%)
|
|
|
July 980 (24.4%)
|
|
|
June 981 (23.4%)
|
|
|
May 988 (5%)
|