Best April in London Real Estate Ever? But for who.

The stats are in and LSTAR is declaring April 2016 to be the "best ever" in London real estate. To put it simply all that means is more homes exchanged hands (1068) in April 2016 than any other April before. Ok, so that sounds like a great month for Realtors- but how are buyers and sellers faring in this market?

Well the news is good for sellers. Home prices are up an average of approx 3% compared to last year- which doesn't seem as dramatic as you might expect given current market conditions but lets put some numbers on that because an overall average doesn't exactly paint the picture of how the market might look in your neighbourhood.

For a 2 story home (the most popular style overall in London, it would seem as it's gained value faster than any other style) in North London (and by North- we mean North and West- there is no West London for real estate tracking purposes) the prices have gone up an average of 3.2%.

So the house you were eyeing last spring, listed for $280,000 before you decided to save for another year is now likely pushing $290k. So in this hypothetical situation f you saved an extra 1k per month you've just managed to beat the appreciation on the same home- hardly makes waiting and saving seem worth it, right?

Now let's look at a more dramatic example. The stats say a 2 story home in South London has increased in value by a whopping 7.4% and ranches at an incredible 10.9%. (Which leaves me to wonder which category my ranch with a second story addition falls into- but it's likely splitting hairs).

So that cute ranch home you saw online last spring for 210k that was just outside your 200k budget? Now it's selling for almost $233k. (well according to the statistics anyways).

The news isn't all bad for buyers but one final blow before we lay out some optimistic news. Inventory is low. It's like going to best buy after boxing "week". The trucks haven't arrived, the shelves are lacking and you might end up fighting a fiesty looking soccer mom for the last laptop on sale- even if it wasn't your first choice.

Even though more homes are selling- less people are listing. Total inventory is down almost 25%- so more buyers are hunting for fewer homes.

Now here is a dose of reality. London is still a great market to buy a home in. We haven't even officially (as per LSTAR) crossed the line into "sellers market" yet- but it's heading that way. Some areas even decreased a bit in value so there are absolutely some good opportunities out there you just need to be prepared.

I have spoken to clients who said that when they were doing the Open house circuit they would be turned away because the house had already sold by the time the open house rolled around. That's the reality.

If a house lists on Monday- some 1,600 Realtors and Brokers in London alone see that property that day. They then have systems that will push these listings out to interested clients within minutes (based on their client's criteria when they are looking at homes). Often they will book showings before the ink is dry on the listing agreement.

The same house doesn't show up on Realtor.ca until at least the next day. If you wait for the open house to roll around on Sunday (assuming there is one) you could easily walk up to a house that is already sold, or sold pending conditions.

If you are serious about getting into a home, get preapproved, be ready, and get a realtor on your side to get you in for same day showings of properties that are of interest- so you see them before the general public has a chance. It at LEAST puts you on a level playing field with thousands of other buyers in London.

Also- my personal opinion is don't fall into the trap of "waiting it out". The house you see today could easily be out of your price range in a year. As the old saying goes- "don't wait to buy real estate- buy real estate and wait". Wouldn't you rather be the one the equity gains in a couple years than realizing that the extra saving you did barely kept up with the value increases??

If you can't afford your dream home- find out what you CAN afford. Find a house that has amazing potential and MAKE it your dream home. Buying a home that doesn't show well (paint colours- bad flooring choices, bad curb appeal) can really give you an opportunity to make equity gains even above the average numbers I quoted.

Hope this reflection on today's market update was useful or at least entertaining. As always I value your feedback and if you are hoping to jump into this hot market- buckle up and give me a call (or text, or email it's 2016 afterall!).

#marketupdate #londonontario #buyers #sellers