Only year with more sales reported was 2005
In London area, sales numbers represented the 3rd best month ever
By
Mark Schadenberg
In
a year with the Summer Olympics, you may hear the term often: ‘Records were
made to be broken’.
In
real estate in many area markets, that’s exactly the correct terminology this
year.
Six
months are in the books at the end of June . . . in the record books for total
sales with 800 reported in total in the Woodstock-Ingersoll District (WIDREB)
board area.
To
put those concrete numbers in cement, we look back to the first 6 months of
2005 when Toyota announced it would be building a car assembly facility in
Woodstock. That year started off rather slow, but after 6 months there were 829
sales and in June of 2005 there were 182 sales.
In
June of 2016, the reported WIDREB sales total was 163. By comparison though, and
in recent years, the sales in June of 2015 were 156, and only 121 in June of
2014 and also 2013, and just 112 in 2012.
The
bar graph noting average sale prices is here, noting prices were actually
slightly lower in 2015 and 2014, versus the 2 years previous.
I
won’t post all the stats, but it’s interesting that some months lately have had
a list-to-sale ratio higher than 100%, which means there are more houses
selling than new listings hitting the market, and that fact obviously drives
prices and demand upwards.
There
are countless reasons why Oxford and Woodstock are great places to live.
In
an upcoming post (later in July), I will write again about residential projects
on the horizon, including a proposed townhouse complex at the corner of Finkle
and Athalone at the site of the former Faithway Baptist Church.
LONDON
& ST THOMAS BOARD
The
benchmark in LSTAR is May of 2007 when 1,161 homes were sold. The June of 2016
is now the third highest one-month total ever at 1,133.
There
are lots of reasons why, the LSTAR market is also on a roll and many of those
thoughts are the same as WIDREB.
Average
sale prices of detached homes and other date are also noted in the Free Press
story.
Here’s
a look at part of the London Free Press story.
()()()()()()()()()()()()()()()
The bidding wars are having an effect on prices. The average
year-to-date price of homes is $277,084, up 4.8 per cent from December
2015.
That’s a far cry from the red-hot markets in Toronto and
Vancouver, but LSTAR president Stacey Evoy said the London market is far more
stable in the long run so London buyers don’t have to be wary of a real estate
bubble.
“Real estate is where to park your money right now.”
Mike Moffatt, an economist at Western University’s Ivey Business
School, said low interest rates are a factor in the robust real estate market
but there’s more to the story.
The low rates are combined with years of pent-up consumer demand
from people who put off buying a home until conditions improved. Now that job
data indicates a better economy, and growing job security, the housing market
reflects that strength, Moffatt said
“It is sort of an indicator of the overall economy.”
The economy isn’t back to where it was 15 years ago, he said,
but it is the best it has been in a long time. Moffatt said Southwestern
Ontario has the strongest economy in Canada outside the Vancouver area.
“I certainly think it’s a real phenomenon,” he said of home
sales, adding other communities in our region are experiencing the same
“fantastic” surge.
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Also in the city of London, the number of building permits for
high-riser apartments and condominiums has mirrored the increase in home sales.
A LFP story this week, notes that 513 residential units building
starts were recorded in June of 2015 as compared to 182 in June of ’15.
Building of single-family homes also rose from 121 last year to 175 in June of 2016.
The story is linked below.
LINKS:
Mark Schadenberg, Sales
Representative
Senior Real Estate Specialist
(SRES designation)
Royal LePage Triland Realty
Independently Owned & Operated, Brokerage
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