Let’s talk about what has happened with home prices in 2019. Have they gone up, like we have seen in previous years? Or have they dropped? Unless you have zero interest in real estate, then you likely know that things have been good for London real estate prices over the past few years and 2019 was no different.
A price increase…
Prices jumped by just over 10% year over year, meaning between 2018 and 2019, prices were up across the city by an average of just over 10%. See Table 2.1.
Table 2.1 Sales Price vs. New Inventory
2019’s growth is stacked on the past two years of record breaking price growth. When looking over the past three years, we see that prices have grown a whopping 45%. It has been a good time to be a home owner over the past three years in London.
But why are prices growing so rapidly? Let’s look at Table 2.2.
Table 2.2 Historic Average Sales Price/Year
Trends over the past year see the number of new listings hitting the market (supply) declining, and the number of sales growing (demand). If we were to look more specifically at 2019, we can see that anytime we were low on inventory, prices grew. On top of that, if we saw an increase in inventory, we didn’t actually see prices drop, which compounds the growing prices. As long as we continue to see low supply and growing demand, we will see prices rise.
On a regional basis
Let’s take a look at how the prices shake out in the different regions of London. East London continues to be the most affordable with an average price of $323,041, while the North was most expensive at $491,668 and the south landing in the middle at $416,420. While those numbers are nice to know, what we really want to know is how have these numbers grown over the years? See Table 2.3
Table 2.3 - London Average Sales Price by Region
To be honest, when we look at the three different regions of the city, there are no real exceptions. All areas over the past five years have grown equally, with less than 1% deviation.
Living in an ecosystem
While this breaks down the city a little bit, and as much as we look at London as a whole market, each neighbourhood is like it’s own little ecosystem. There are factors at play in each community that will affect supply & demand, as well as prices. This is why I send a complimentary home evaluation to all my past clients within the first few months of the year to show them exactly what is happening in their neighbourhood and what their home is worth.
Here is my offer to you: if you would like to have me provide one of these complimentary home evaluations for your community and home, then send me a message and I will be in touch with the details.