Let’s take a look at some predictions for the real estate market in 2020 for London, Ontario.
To quickly recap:
Sales grew in the 2019 market - it was 3rd highest year recorded
Prices grew by 45%
Supply is not meeting the demand of the market
In 2020, I think we can expect to see a shortage of homes for sale, and the demand (along with prices) to grow as well.
Why a shortage?
Immigration plays a role in the real estate market, whether it be international students or empty-nesters from the GTA. London is an attractive place for folks from the GTA because London has a lot of great infrastructure, not to mention the real estate is cheaper. We have a wonderful healthcare system, and the amenities London has to offer is still quite substantial.
The economic base is strong as well. LHSC, Western University, and Fanshawe college are 3 huge employers here in London, not to mention the large growth we see in other industries and sectors.
We also see historically low interest rates, and it wouldn’t surprise me to see those interest rates stay where they are. Even though London is experiencing a strong real estate market, there’s a lot of Ontario cities that aren’t; there’s even a lot of Canadian cities that aren’t. As lending rates stay low, it allows first time homebuyers to continue to push into the real estate market, and there’s still demand in the upper-end price ranges.
It’s a Seller’s market
There is strong demand across all price ranges and all houses are moving, so it’s a wonderful time to be a seller in the London real estate market. I think we’ll continue to see that in 2020, unless we get a huge push in supply where all of a sudden we are flooded with houses on the market. But even still, there is such a pent up demand that we would chew through that supply pretty quickly. We would need to see a lot of houses on the market to return to a balanced market.
Unless something substantial changes with immigration, London’s economy, or lending rates, I think we’ll continue to see 2020 be a strong sellers market. We’ll continue to see the prices grow, and we’ll likely see more and more homes sell.
Have someone on your side
At any rate, it is an important time to have a realtor on your side - buying or selling. It’s a very competitive market out there. As a buyer, you want to have a realtor out there who knows how to navigate that competitive market, and help you get the property that you want. As a seller, it’s important to know how to market your home and position is properly on the market for potential buyers, in order to maximize those dollars.
As always, if you have any questions about what’s going on in the real estate market, I would love to hear from you.
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