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The average sale price in the London housing market decreased by 11.5 per cent year-over-year between 2022and 2023 (from $737,087 in 2022 to $652,100 in 2023), while the number of sales decreased by 13.4 per cent for the same period (from 6,886 in 2022 to 5,963 in 2023). The average residential sale price is expected to increase by three percent in 2024, while the number of sales transactions is predicted to increase by ten per cent. Ongoing concerns regarding interest rates have created balanced market conditions which are expected to continue into 2024.
In 2024, the top three neighbourhoods and areas within the London region likely to be most desirable include North London, East London, and St. Thomas. Some of the top liveability trends emerging in the London region include multi-family homes, access to public transportation, and access to both public and private greenspace. Demand for multi-family homes in particular are fueling trends in the region’s new construction projects.
Overall, many new construction projects are progressing, however, many projects and builds have decreased due to rising labour and material costs. Those that are progressing are focused on additional suites for family or rental opportunities. Homebuyers in the region are increasingly concerned about higher interest rates and mortgage costs, therefore, having a secondary suite to rent out, and using those funds to support mortgage payments, is becoming more appealing to buyers.
“With many homebuyers, especially first-time buyers waiting on the sidelines for interest rates to ease, sellers looking to move up – or over – in the market have had to adapt,” says Carl Vandergoot, Broker of Record, RE/MAX Centre City. “We’re seeing more sellers selling their current property before moving-up, or over, in the market, or sellers in-and-above the $800,000 range including offers on homes as conditions to the sale of their own home. While effective, this has made the overall process slower.”
Top Trends:
- 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.
- Liveability trends in London include access to public transit, green space, cohabitating with family, or homes with a secondary income suite for additional income opportunities.
- New construction has decreased due to rising labour and material costs, but those projects that are progressing are focused on homes with separate suites for additional family or income opportunities.
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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.