The housing market in London, Ontario, has been a topic of interest for many, especially in the year 2024. With a unique blend of urban development and historical charm, London offers a diverse range of housing options. However, like many other cities across Canada, London has been grappling with its own set of challenges in the housing sector.
As of February 2024, the average home prices in London, Ontario, have increased by 2% over the past month to $617,790. This is 0.7% lower than in February 2023. The benchmark price of a home in London-St. Thomas for February 2024 was $587,400, 0.5% higher than last February. The average selling price of a single-family home in London increased by 0.9% year-over-year to $634,000. The average selling price of a townhouse/multiplex in London decreased by 2.8% year-over-year to $474,200. The average selling price of a condo in London increased by 6.0% year-over-year to $386,300.
The housing market in London is expected to experience moderate growth in 2024. According to the London and St. Thomas Association of REALTORS® (LSTAR), the average price of a home in London, Ontario, is expected to increase by 4.7% in 2024. This growth is expected to be driven by a 13.9% increase in home sales in 2024.
However, despite these promising figures, the housing market in London faces several challenges. One of the main issues is the affordability of homes. Just under two in three (64%) households in London owned their homes, lower than Ontario (70%) and Canada (68%). When a household spends 30% or more of its income on shelter costs, it is considered to live in unaffordable housing: this was the case for one in four (26%) London households, similar to Ontario (28%) and Canada (24%).
Another issue is the impact of interest rates on the housing market. London is expected to be a balanced market in 2024. Interest rates are the dominant factor impacting London’s housing market, and many homebuyers are unable to qualify with the stress test.
Looking ahead to early 2025, the outlook for the housing market in London, Ontario, remains cautiously optimistic. The anticipated increase in home prices and sales in 2024 is a positive sign. However, the issues of affordability and the impact of interest rates will continue to be significant factors influencing the housing market.
For Home Buyers
The housing market in London, Ontario, is expected to be balanced in 2024. This means that there is a healthy level of competition between buyers, but it’s not overly difficult to find a home. However, interest rates are a dominant factor impacting London’s housing market, and many homebuyers are unable to qualify with the stress test. This could make it more challenging for some buyers to secure a mortgage.
For first-time home buyers, there are some great opportunities. Sellers are coming to terms with tapering price growth as higher interest rates have barred many from entering the market. Inventory is low, but will edge up in the early months of 2024, before really ramping up in the Summer. This could mean more options and potentially more negotiating power for buyers.
For Home Sellers
The year 2024 has so far promised an exciting and lucrative time for home sellers. After all, the market has been on a roller coaster ride, with house sales jumping a surprising 30 per cent in January compared to the same month in 2023. The trend continued into February, with an impressive rebound in average home sales prices.
With the real estate market in London, Ontario, favouring sellers, 2024 promises to be an exciting year. The high demand for homes, coupled with low supply, will likely keep house prices high. This means that home sellers can expect good returns on their properties.
However, selling a home is not always a straightforward process. It involves preparing the house for sale, marketing it, negotiating with potential buyers, and handling the paperwork. For many sellers, this can be a daunting and time-consuming task. But here’s the good news: there are ways to make the process easier and more profitable.
In conclusion, while there are challenges in the housing market in London, Ontario, both for buyers and sellers, the outlook for 2024 and early 2025 remains positive. Buyers can look forward to more inventory and potentially better prices, while sellers can expect a high demand for homes and good returns on their properties. As always, it’s important to stay informed and make decisions based on the most recent and reliable data.
