Unit Activity:
After 8 months of Sales, The "East" side of London is reflecting an overall decrease in units sales of 6.3% (906 units versus 967 units for the previous year). Listings increased for the month of August versus a year ago by 14.1% (211 new listings versus 185 for the same time period a year ago). On a year-to date basis a homeowner had a 56% chance of selling their home during the listing period. this fell to 51% for the Month of August. Interesting enough the East still had the highest sell though in the London area..The London St.Thomas Real Estate Board sell though average is 51% y.t.d. and the desirable North of the city delivers a 48% sell though. In other words a home listed for sale in London North has a less than 50% chance of selling during the listing period. Clearly London East is more active than other areas of the City of London.
On the positive side, the market remains in balance for the time being. the 14.% increase in inventory is of concern if it continues. Prices hold in a balanced or low inventory market. If inventory continues to grow beyond Consumer purchases we will be driven into a Buyer's Market.
Price Activity:
Prices in East London rose 3.5% on a year-to-date basis to the end of August versus the same time period a year ago. The average house price in this area now sits at $197,238 up from $190,387. As a comparison, London North sits at $304,985 and The London St.Thomas Real Estate Board average price is currently at $245,102. The average London East house price is up versus a year ago but down marginally against the year-to-date number. ($195,565 versus $245,102).
What Does All This Mean?
We have not experienced the double digit year after year price increases driven by primarily by Vancouver and Metropolitan Toronto and immigrant influx into these markets. Interest rates are low and anticipated to remain this way for some time. The US housing market remains soft and as a result a significant number of home owners owe more on their mortgage than their home is worth. This provides an excellent opportunity in this area for First Time Buyers to condsider their first time home purchase. Government incentives such as Land Transfer rebates of up to $2,000 and the Legal fee tax reabate offer to these First Time Buyers bu Canada Customs and Revenue Services make the finacial burden for this group much more manageable Therefore the affordability aspect of our market remains favorable and sales should remain stable.
