Year End Results

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 3^rd quarter.  This is the lowest unemployment rate since the 4^th quarter of 2008 prior to the market collapse in the fall of 2009.  Basically London added 3,300 more full time jobs in the 3^rd 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  

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