Is the London Real Estate Market Shifting Towards Buyers?

This year, London, Ontario's real estate market is presenting some fascinating shifts that might catch your interest. If you're dreaming of home ownership or pondering an investment, now might be a good time to keep a closer watch!

Home prices in London have taken a bit of a dip recently, and sales are down, influenced largely by the rise in interest rates. But there’s more nuance to this story than just numbers.

One of the noticeable trends is that homes are taking longer to sell. If you're selling, you might be reminiscing about the rapid sales pace in 2021 and 2022 when homes often flew off the market within mere days. Nowadays, even a 19-day listing feels like an eternity!

For those whose vision of the 'dream home' includes a detached single-family property, there's a bit of a pinch. Less of these homes are selling compared to previous years. In the first seven months of this year, 3,731 single-family homes were sold—only a modest increase from last year but still down significantly from 2021’s peak.

So, what's making it harder for people to buy homes? Higher interest rates and the rising cost of living are major factors. Groceries, dining out, and general expenses are straining budgets, making people more cautious about big financial commitments.

Interestingly, this cooling market has technically turned London into a buyer's market. In July, the overall sales-to-new listings ratio dipped below 40%, nudging the city out of a balanced market. However, the data might be a touch skewed by the usual summer lull.

What does this mean for potential buyers? More homes are available, and many are taking their time on the market. It's an opportunity to explore options without the frantic pace of previous years.

So, if you're eyeing the London, ON real estate scene, this could be a moment to negotiate a favorable deal. Keep in mind the market’s seasonal trends and the impact of fluctuating interest rates on your purchasing power.

The London real estate market is indeed in a state of flux, reflecting broader economic forces at play. Whether this continues or stabilizes in the coming months will be interesting to watch.