Market update for the First Half of 2021 in London & St Thomas.
Monday Aug 02nd, 2021
CITY OF LONDON:
Listings have been steadily but marginally increasing. In January there were only 494 new listings, February 721, March 1,112, April 1,074, May 1,114 and then in June, 1,101 homes came to Market across the City. When added to the few remaining previously listed homes, listing supplies remain limited. The number of homes offered for sale has consistently remained at about 1 month’s supply or less. In June inventory rose marginally to about 1 ¼ month’s supply. Remember, a balanced market, where bidding wars don’t take place, is 6 months’ supply!
The bidding wars are continuing. In January homeowners averaged 8.7 % of their asking prices. This means virtually all listed homes were in Bidding Wars. From February through to April, homeowners averaged over 114 % of asking prices. In May, this ratio dropped marginally to 112.5% and fell again in June to 108.5% of asking prices, due to fewer homes coming to Market in May and June.
Across the City, sales have consistently increased month by month. Remember, in January we started the year with 404 homes sold across the city. By April there were 826 homes sold, May 923 homes sold and in June 827 homes sold.
With this unusually tight inventory of homes available, prices continued to climb. In December, we finished the year with a record of $561,716 for the average home across our city and by March 31, 2021, we hit a new average high of $631,546 an increase of about $70,000 in just 3 months. We peaked at $643,047 in April and leveled slightly in May at $632,381 finishing June at an average across the city of $628,739. It appears the maximum price is holding at around $630,000 range. Homes priced to a top selling price, for a specific size and features for a home are not experiencing bidding wars and usually end up selling 2% to 3% below listing price. Homes priced strategically below market at $599,900, which is about $50K to $75K below final selling price are getting massive bids and often do better than a home priced to market. Out-of-town Buyers, with an out-of-town Realtor, are looking only at Realtor.ca and can only see competing asking prices for homes that are actively offered for sale.
In January there were 158 new listings for homes offered for sale, since then the number of homes offered for sale has steadily increased, month by month, peaking in March at 361 homes sold, rebounding again in June with 363 sales. When added to the few remaining, previously listed homes, inventories of available homes remain limited. The last couple of months have seen a marginal increase to about 1 ½ months’ supply of homes offered for sale. Remember a balanced market is 6 months’ supply!
The bidding wars are still occurring as a result. In January homeowners averaged 8.6 % above asking price. This means every properly priced home experienced Bidding Wars. In February as months’ supply dropped, Homeowners averaged 112.6 % of asking prices. In March as supply fell again, against increased spring demand, causing increases “list price to sell price ratios” peaking at 113 % of asking prices. As prices rise, the offers over list have leveled a bit to 106.9% of asking prices in June. This is the highest priced market segment of our city and the area and as a result, homes offered for sale across North London in June sold in an average of 12 days.
Do not forget the number of homes that sold in North London are also increasing. In January we started the year with 121 homes sold in this area. In February, this number increased to 182 homes sold, in March this jumped to 310 homes sold and finally in April things leveled to 249 homes sold and increased again through to June finishing at 281 homes sold in the area.
Tight inventory of homes available continues to drive prices upward. In December, we finished the year with a record of $648,310 for the average home price in North London. January showed a jump of 10.3% to $726,006. In February average price leveled to $708,484, March rebounded with value increase to $733,872 and we peaked in April delivering a new average price for the month of $761,052. In May this average softened to $740,365 and finished June with an average for the month of $722,791.
In January there were 192 new listings, and steadily increased peaking in April at 440 new listing coming to Market. The number of new listings since then have dropped marginally to 404 homes listed in the South in May and 401 homes listed for sale in June. When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies of homes available for sale have consistently remained below 1 months’ supply since January! The number of homes offered for sale increased marginally in June to about 1 ¼ months’ supply. Remember, a balanced market is 6 months’ supply!
The bidding wars are continuing as a result. In January homeowners averaged 6.1 % above asking price. This means virtually every sale involved Bidding Wars. In February, March and April, the sale price remained above 13 % of asking prices. In June, this average list to sell ratio still finished at respectable 108.7% of asking prices. In January it took 19 days to sell a home and by April and again in June, it had dropped to only an average of 9 days to sell.
Let us look at sales across London South. In January we started the year with 138 homes sold across the area. In February, this number increased to 252 homes sold, in March through April sales exceeded 330 sales per month. June finished up the first 6 months with a respectable 298 sales.
Continuing tight inventories of homes available, still drove prices upward. In December, we finished the year with a record here as well, of $582,713. January showed a further jump of 22.2% in value to $712,295. In February, we saw a drop in average value to $650,039, March delivered an average of $631,643, April delivered $654,576, May delivered average $658,344. The average selling price in June for this area came in at $623,754.
In January there were 141 new listings, February 199 new listings, March 312 new listings April 299 listings, May 350 new listing, dropping a bit in June to 333 homes coming to market. Added to the few remaining previously listed homes the inventories of available homes remain limited. With aggressive sales in this area inventories averaged below 1 months’ supply except the month of April that rose to just over 1 month of homes coming to market. In June inventories rose marginally to about 1 ¼ months’ supply. Remember a balanced market is 6 months’ supply!
In January homeowners averaged 114.3 % of asking price. With massive Bidding Wars. In February, April, and May’s homeowners averaged above 115 % of asking prices. In March, this competitive activity peaked at 117.8 % of asking prices and finished up June with averages of 110.5 % of asking prices. For most of the spring it took an average of 9 days to sell a home. In June this rose to an average of 11 days.
Let us look at sales across London East. In January we started the year with 126 homes sold across the East. In February, this number increased to 159 homes sold, in March this number of homes sales rose to 247, In April, this number settled at 226 homes sold and rose again in May to a record 305 homes sold. Sales in June leveled back to sales of 244 homes.
With this continuing tight inventory of homes available, what did this do to prices? In December, we finished the year with a record here as well, of $440,794. January showed a marginal drop of 6.9 % to $410,500. In February, we saw a significant rebound in average value to $467,574, March delivered the peak average home prices at $508,244 (with the lowest months’ supply so far). May delivered an average price $502,163. The average house price in June in London East averaged out at $499,503.
In January there were 37 new listings, February 70 listings, March 117 listings April only 122. In May and June inventories of new listing fell. May saw 101 new Listed homes offered and June only 97 homes came to market. When added to the few remaining previously listed homes, the inventories of available homes remain limited. Supplies of homes offered for sale in St. Thomas have been well below a single month’s demand. We now sit slightly above a month’s supply. Remember, a balanced market is 6 months’ supply!
You can imagine the bidding wars that are occurring as a result. In January Homeowners averaged 10.4 % above asking price. This means virtually every sale involved Bidding Wars. In February as months’ supply dropped, Homeowners averaged 116.3 % of asking prices. In March this dropped marginally to 110.9 % of asking prices and in April increased marginally to 111.8 % of asking prices. These bidding wars peaked in May at 112.6% of asking prices, finishing June at 108% of asking prices. In January it took 12 days to sell a home and by April it had dropped to only an average of 8 days to sell and back up to 13 days in June.
Let us look at sales across St. Thomas. In January we started the year 34 homes sold across the City. In February, this number increased to 57 homes sold, in March this number of homes sold rose to 91 for the month of March and finished at 110 homes sold in April. Remember inventory is limited. May finished with 91 sales and June with 75 sales.
With this continuing tight inventory of homes available, what did this do to prices? In December, we finished the year with a record here, as well, of $438,898. January showed a further jump of 20.3% to $528,142. In February, another increase in average value to $540,096, March delivered a solid value increase to $562,248 and finished April at $540,360, May $555,293 and June with a smaller sales base at $543,275 for the city. With the sale of the Ford property to a major developer in Talbotville with proposed clients such as Amazon, values will continue to set records here.
Always remember, I am here to help in any way that I can be of service to you and your family.
First, I have a message for First Time Home Buyers. In this crazy on-going Covid Market, you may need Family support for the down payment to help you bid 10% to 15% over the asking price. The first step is to get pre-qualified by a Mortgage Broker or your Bank. Once you find out what you can reasonably afford, plan to bid above the asking price as described above with a Cash, Non-Conditional Offer with a short closing if you are renting. You will logically be able to pay back Mom and Dad within 24 months. As your Realtor, I will investigate market values in your planned neighbourhood and provide comparable sales.
Now for you Move-Up Buyers, now is the best time to use some of that equity that you have built up over the last year. The first step is to get pre-qualified by your existing mortgage holder and outline how your new mortgage will be blended without penalty. Once you find out what you can reasonably afford, I will evaluate the Market Value of your home and outline all contingencies at no cost to you. This will give you the ability to safely overbid the asking price with a Cash Non-Conditional Offer and a closing of 2 to 3 months. If priced reasonably, you can expect the same over-bidding that you are making. Your equity will cover the excess price on Closing. With the average home selling within 2 weeks, the risk is virtually non-existent.
Lastly, if you do not have to sell, this is the worst time to do so! Every day that passes brings increased equity to our current homeowners.
I am here ready to assist!
Do not wait, pick up the phone, or email and I will be at your side, looking after the best interests of You and Your Family!
Home Office- 548-688-8833
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