How is The Condo Market Doing in London Ontario?

Well ask ten different people and you will probably get ten different answers.

Back in August of this year I wrote a blog where I noted the following. “In the last ten business days there was 64 “MLS” condos sales in London Ontario”. Once again I was writing about what was happening back in August of 2017. In the under $225,000 price range there were 36 sales. Six of these sales sold at their asking prices. Twenty sales sold under the asking and the average selling price was $3,961.00 below ask. Ten units sold out over asking and the average amount paid over asking was $8,484.00″.

Prices continue to rise. Many sellers have priced there units slightly higher than past comparable sales. In the last ten business days (ending two days ago on Sunday) there were 37 “MLS” condo sales in London. In the under $225,000 condo price range therewere 19 sales. Of these 19 condo sales in this price range only one unit sold out over it’s asking price, one sold out at the list price and 17 units sold out below their asking price. Of the seventeen condo units selling out under asking price the average price paid below the listing price was just over $4,000. That’s in line with what was happening back in the summer.

What does all of this tell us? Now here is where the answer gets tricky. We are witnessing fewer over asking price sales in the lower price level. On the surface it may seem that buyers are not bidding up prices and paying whatever it takes to win out in multiple offer situations. That’s what happened in recent past markets. Now consider this. There are many pockets in our city, particularly in areas like our south section where selling prices of some condo complexes have jumped up 25, 35 and even 50 percent and more in value in less than eight or ten months. Addresses like 1330 Jalna Blvd. and 114 Pauline Cres. just to name two. So when a condo in 1330 Jalna Blvd complex now gets listed at $189,900 and sells out at $185,500 does that mean that our markets are cooling off? It does only if you looking at it from the perspective of list versus sale price. If you look at our website you will see that the average selling price of a unit in that complex last year was only $107,400.

New buyers are continuing to come to our city and many of them are happy buying in this lower price range with few  concerns over how much more they are paying than their neighbours did next door who happened to buy one year earlier. In their minds our prices are still bargains.

Will our real estate markets continue to go up forever? Tightening mortgage qualifying restrictions and other unknown factors like the outcome of the NAFTA talks might slow down the upward trend of our real estate prices. In the meantime we are living in a real estate world with fewer new listings being posted on our “MLS” system . By Peter Daoust. Broker. Remax Advantage Realty Ltd. Brokerage

 

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