Latest news with #LSTAR
CTV News
4 days ago
- Business
- CTV News
‘Now's the time to move,' London's housing market remains sluggish, but local realtors expect movement soon
Inventory of homes for sale in the London region continues to grow. (Gerry Dewan/CTV News London) The Bank of Canada's decision to hold the prime lending rate at 2.65% is seen as an encouraging move for the housing market. Economic uncertainty continues to chill the housing market in the London region, but market watchers say the bank of Canada's decision to hold the line on the prime lending rate could help thaw things out. According to the London and St. Thomas Association of Realtors (LSTAR), home sales were down significantly in May compared to the same month last year. LSTAR chair Dale Marsh said having back-to-back provincial and federal elections to start the year didn't steady help an already uneasy market. 'That creates additional nervousness, all right. So, we're down about 17 per cent in the number of sales this year compared to this time last year,' said Marsh. Marsh told CTV News that there are positive signs, with the number of listings continuing to grow. Listings were up 24 per cent year-over-year, with inventory at a four-and-a-half-month supply. Marsh feels people are coming to terms with the economic environment. 'There's also pent-up demand from buyers that, at some point, they're going to get used to the government talks and the tariffs and eventually say, 'Okay, now's the time to move. We have to do it at some point.'' 060425 - Housing market Leadership with LSTAR believe home buyers will start to gain confidence. (Gerry Dewan/CTV News London) What hasn't moved in the London market is the price of homes, staying steady in this region despite the economic turmoil. The average home price, just over $656,432, up 1.4 per cent year-over-year. Mike Hattim is a mortgage broker with Dominion Lending Centres. He believes that may be the result of an overheated market during the COVID years. 'I think that's the biggest struggle for people is that they've spent so much on their homes years before that now they don't have enough room to drop the prices,' he said. Hattim said government measures to counter US tariffs and promote economic growth domestically could instill some confidence. He believes the Bank of Canada's decision to hold rates at 2.75 per cent may give the housing market a boost but feels another cut may be needed. He's already seeing sellers taking a bit of a haircut in an effort move property. 'I know one person right now that's going to lose about $150,000 on their home. They spent quite a bit of money when they bought it and they're desperate, they had purchased another home, and they didn't have much of a choice. Now, thankfully, that loss is mostly equity that they would have wanted to take out.' Hattim added, 'They were still had enough to cover their mortgage but, unfortunately, they're losing money. And I think that's going to be the case for a lot of people.' Marsh said the London region is still seeing unprecedented population growth and attracting significant new business ventures, like the Volkswagen PowerCo EV battery plant in St. Thomas. He expects the market will adjust and continue to be an attractive option, 'The London St. Thomas area is actually a cheaper market than, say, Kitchener, about half the price of GTA, right. So, a lot of people will drive from those areas and come this way because it's a lot more affordable.' Marsh is anticipating that home sales could start to ramp up through the summer and expects a strong market in the fall.
CBC
26-05-2025
- Business
- CBC
Thinking about buying a home in London? There's more available now than in years
London realtor Doug Galbraith said the last time he saw a housing market as slow as today's was in 1983 when all the houses on his childhood street were listed for sale at once. Now that supply is up and demand is down, he said it's a good time for prospective buyers to invest in a home. "I always say the best time to buy is today, but in my real estate career, I've never seen anything like this," said Galbraith, who is with Blue Forest Realty. "A couple years ago, you would put 'for sale' signs on lawns with 'sold' stickers already on them," he said. "Realistically, now you're looking at 30 to 45 days on a property that's priced right. If it's not priced right, it'll just sit." London is one of several Canadian cities that have seen a market slowdown, specifically when it comes to condos. Apartment condo sales are down 28 per cent compared to this time last year, while townhouse condos are down 25 per cent, said London and St. Thomas Association of Realtors (LSTAR) chair Dale Marsh. There have been 479 condos listed so far this year in London, according to LSTAR. "We went from a provincial election straight into a federal election, plus the perfect storm of having tariffs thrown in there at the same time, so I think there's some nervousness of people in the area," Marsh said. The average price of a townhouse is sitting at $516,000, while apartment condos are around $381,000, Marsh said, adding that while prices have spiked post-pandemic, the market only rises or falls by about two per cent each month. "It's a little bit of a stable rollercoaster," he said. Realtor Jie Dan of Sutton Group said part of the reason people aren't buying, despite the flat market, is the high cost of living. "People aren't usually looking at the overall market prices over the years, they're just looking at whether or not they can afford it," she said, adding that many people cannot. "A lot of people do not have the disposable income." However, she said people who are in the financial position to buy a home should take advantage of the current market. "Don't wait. If you're a first time home buyer and can afford it, you need to make that investment," Dan said. Buyer, seller behaviours changing Because it's a buyer's market, Galbraith said he's noticed that buyer behaviour has changed, with people taking more time to close a deal. "Now you have a little more time to make an educated decision," he said. "You can bring in your home inspector or father-in-law who's an electrician to give your house a good going-over." Buyers also have more swing when negotiating, he added. However, it's a more challenging time for sellers, the realtors agreed. "You've got some extra competition, so you want to make sure your pricing is bang on," Marsh said. Galbraith said he is even cautioning some homeowners against selling their property until London becomes a seller's market again, unless they absolutely need to. "If you're just selling to see what's going to happen, I would recommend you wait," he said. When will the market balance out? Marsh said he expects the market to turn around by summer or fall, following the past few months of pent up demand. However, unless the cost of living changes, Galbraith and Dan are less hopeful. "People are drowning and I see it," Galbraith said. "I've done mortgages for people in the last six months that are just trying to pay their bills." Dan said the last time she experienced a market like this was in 2007, and although that quickly started to balance out in 2008, she said the current slowdown won't be resolved for at least two more years.
