Whether you’re buying your first or going bigger, it’s a good time to buy a home in the London area, according to a local real estate agent.
With interest rates coming down and the market levelling out after peak prices seen during the height of the pandemic, the average price of a home in London is about $620,000, said Jie Dan of Sutton Group – Jie Dan Realty Brokerage.
“For people who [are] changing [homes], especially moving up to a bigger home, this is the best time. But you need to sell your home first.”
Dan, who has been selling real estate in London for 22 years and works with a lot of newcomers to Canada, said she has seen a lot over the years but nothing like the “roller coaster” seen during the pandemic, when real estate prices peaked.
“I’ve been talking to a lot of fellow agents who’ve been in the business longer than me, and we all agree this cycle was one of the heaviest storms ever.”
Dan said the housing market in London slowed down significantly when interest rates steadily increased, starting in 2022. Now that they are going down, Dan said more sellers are hitting the market, but buyers have not kept pace.
“This year the sales are similar to last year but the last couple of times interest rates decreased, it did not stimulate the market.”
Back to a more balanced market
Bill Madder, CEO of the London and St. Thomas Association of Realtors, agrees 2024 has been quiet, but told CBC News there’s signs of positivity coming into the market.
“I think we’re working our way back to a more balanced market,” Madder said. “I think the interest rate changes will help that.”
Madder, however, warns against putting too much emphasis on what the Bank of Canada does.
“Don’t try and time the market either at the lowest price or the lowest interest rate. I think it’s a matter of what you and your family need in a home and what you can actually afford.”
When it comes to neighbourhoods that are desirable, Kathy Amess, chair of the London and St. Thomas Association of Realtors and broker of record for Blue Forest Realty, said it depends on the buyer.
“Areas like Old South tend to always be popular all the time,” she said. “It’s got schools and it’s close to downtown and not too far away from the highway and hospital.”
Other areas that have seen growth and interest include northwest London around Gainsborough Road, said Amess, adding Summerside is popular among commuters while the schools in north London attract buyers as well.
“It depends on what people are looking for and what their budget is, said Amess. “I think London generally continues to have good demand in most of the neighbourhoods.
There are semi-detached and town home options for Londoners looking in the $400,000 to 500,000 range, said Dan, adding that 40 per cent of buyers in London are from the Greater Toronto Area.
“These types of homes in Toronto would be double the price so it’s still worth a shot to buy your first home, even if it’s not perfect.”
