Updated: May 21, 2022
The long-awaited drop in the average price of a home in London, Ontario dropped by $50,000 in April. While the reasons for the drop are varied, it is clear that the month-to-month dramatic price increases seen starting in 2020 will not be seen soon.
The main factor behind the decline in prices is the double increase in the interest rate. The talk of the real estate industry is no longer the red hot housing market but how high will the next interest rate hike by the Bank of Canada be in June.
While interest rates will continue to climb I would advise home sellers and buyers not to be guided by fear. Interest rates continue to remain at historically low levels so does the inventory of home sales available on the market. While it's accurate the inventory levels are seeing an increase, it will take many months and perhaps years for the Canadian home sale supply to reach the levels of G7 supplies.
The fundamentals of selling your home should continue to guide your strategy. Ensure you stay focused on the task at hand, getting the best value for your home. Reach out to me for a free consultation and use our Contact page to receive an immediate reply.
The following articles are intended to highlight trends in the home selling industry. While the trends point to a decline in house pricing please keep in mind that we have seen a rapid increase in the value of a home. It was inevitable that there would be a cooling down period from the record jumps in prices. Selling your home in London, Ontario will continue to be a smart decision and it is important to take note of the fact that your individual circumstance is unique and not necessarily guided by the trend in the housing industry.