Seller’s market expected in 2020, prices to rise 5%
The RE/MAX London housing market outlook for 2020 continues to favour sellers – conditions which characterized 2019 market activity as well. The average residential sale price expectation for London in 2020 is an increase of five per cent, based on historical trends of steady year-over-year sales growth.
London continues to see immense growth via migration from the GTA over the past five years, with no end in sight. This should continue into 2020 and beyond, impacting housing supply and demand in the region. There are currently 1.9 months of inventory, which will trend slightly upward next year. London’s rental demand has increased year-over-year and will continue its upward trajectory in 2020, with a very low vacancy rate as a result of higher home prices.
Move-up buyers, first-time homebuyers and foreign buyers will be the main market drivers in the year ahead.
North and south west London will be the hottest neighbourhoods in 2020 due to their proximity to hospitals, university, stores, restaurants and the 401. London’s east will be a hot neighbourhood for affordability.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
Click to read the full RE/MAX 2020 Housing Market Outlook Report.