Our Trading Area:
Residential
Sales in the London St Thomas area posted a marginal decline of 1.4% in the number
of homes that sold across the Real Estate Board’s Trading area of Elgin and
Middlesex Counties. The total number of homes sold reached 6442 (-1.1%) for detached
homes and 1462 (3%) for condos. The
total decline was only 115 homes combined.
The Real
Estate Market is considered in balance, meaning there is the correct supply of
homes for the number of active buyers looking to make a purchase at this
time. Prices are therefore rising.
The average
price of a home in 2013 in LSTAR’s jurisdiction in Elgin & Middlesex
Counties rose to $245.737 or 2.9% ($6,929).
When we break this down, the average detached home selling price rose to $261,051
or 2.6% ($6,615). Condos, in spite of the 3% downturn in units, performed at a
higher selling price. They averaged out to $178,309 which represents an
increase of 4% ($6,858).
We have stated
for some time that St. Thomas was an exceptional value as a well located bedroom
community to London with all the infrastructure a family needs plus easy access
to Lake Erie. St Thomas. In 2013 St
Thomas led the area in value improvement with a marginal increase in unit sales
of 13 units finishing with 669 homes sold.
Prices rose 5.2% or $9,962 to an average price of $201,568.
The
unemployment rate in London is still improving.
It improved by 1.3% and is now at 7.9% at the end of the 3rd
quarter. This is the lowest unemployment
rate since the 4th quarter of 2008 prior to the market collapse in
the fall of 2009. Basically London added
3,300 more full time jobs in the 3rd quarter of 2013. At the same time there was a reduction in the
number of part time jobs (1,600 part-time positions) offsetting this number a
bit.
London North:
For the 12 month selling period ending December 31, 2013, the average “detached”
home selling price in North London rose to $325,658 an increase of 1.7% or $5,312
from $318,346 for the same period a year earlier.
London South:
Affordability
during 2013 played a major role in the price performance of home across the city of
London. We can clearly see that first
time buyers are jumping on the value difference offered in the South of the
City. The average detached home selling price in South London for this 12 month period is still over
$43,000 ($282,452) less expensive than the average home in the North. Prices, however, rose significantly from $269,941 representing an increase of 4.6% or $12,511
year over year.
London East:
The East
part of London continues to be the best price value. The value of a detached home during the 12 month period in the East
dropped marginally by 1.1% from $204,486
to $202,185 or $2,301. Total Condo sales in
the east outperformed the entire Eastern area finishing up 4.6% ($6,805) with an average price of $154,208. Ranches sold in the this same area also outperformed the Eastern area, improving in value by 2.95% ($5,824) finishing at
$208,729
Prospects for 2014:
The
prospects for 2014, look good! Interest
rates continue to attract new buyers to
our market.
As of
January 22nd, 2014 the Bank of Canada advised that it was keeping its trend
setting overnight lending rate at 1%, where it has been held since September
2010.
Based on
supply, moderate continued price growth and the continued prospect of building
long term equity. It is a good time to
invest in your future with your own home.
Looking
for a professional approach to finding your Family's Dream Home?
Thinking of making a move? Call Gib & Mary
Gib
Heggtveit 519-535-3975
Mary Heggtveit 519-535-7355
You
are always
“First”
with us!
