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The Busy Market Continues: Another Record Month in April

April 2017 is in the books and it has been another record month for the London, Ontario, real estate market.  The city of London saw 846 homes (combined detached and condominium) sell during the month of April, and increase of 18.65% in number of units sold over the 713 sold during April 2016.  Prices have similarly risen from an overall average of $281,346 for all of April last year to an overall average of $355,751 for April of this year.  That is a 26.45% increase year-over-year for the month.  Last year was itself a busy year for real estate.  We saw a 6.73% increase in overall price from 2015 to 2016 as the average home price rose from $265,780 to $283,677.  Since the beginning of 2017, things have really taken off.  January –normally a very slow month for real estate sales– saw the average price rise to $302,013.  Then in February that increased again to $318,003.  Again in March to $346,188.  April has continued that trend, seeing average prices for the month rise to $355,751.  Overall for the year the average is $338,700.  A few days into May are seeing that trend continue.  We are definitely in a seller’s market.  Prices are lurching upward to a new level.  A bubble?  A long overdue correction?  I would lean towards correction, but time will tell.
If we break down the numbers a little further we closed out 2016 with an average detached house price of $315,146 for the year.   Year to date that average has increased to $381,099, an increase of 20.93%.  For the month of April that number increased to $398,251.  We have seen all the signs of a busy market.  Multiple offers.  Offer hold-back dates.  Rising asking prices.  For 2016 the average asking price was $317,637 and the average sale price $315,146 which is 99% of asking.  That asking price has risen to $367,152 which still has not risen enough to meet demand as the average sale price for a detached home is 104% of asking at $381,099.  In April, that asking price was $372,298 and still the sale price was a whopping 107% of asking at $398,251.  That trend is continuing through the first few days of May.
Things are similar for condos.  2016 saw an average price of $197,740 for the year.  That average is now $228,195.  That is a solid 15.4% increase this year so far.  The month of April saw an average sale price of $242,603.  Listing to sale price ratio is 101% for the year but was 104% for the month of April.  The condo market in the city has been flat for the last few years, so for many this increase is welcome.  As detached home prices rise and price conscious buyers explore their options, expect condominiums to become more attractive to home buyers.