Whereas “A quiet December wrapped up a modest year for home sales” in 2022 for the London-St. thomas fieldOfficials are wondering what the forecast will be for the real estate market in the new year.
on thursday the London and St Thomas Association of Realtors (LSTAR) released December figures showing the lowest number of home sales in the last decade.
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According to LSTAR, 2022 also saw the second lowest number of home sales since 2012.
LSTAR 2023 President Adam Miller described 2022 as “one of the most interesting years in real estate.”
“We had January [and] February still has its share of craziness and probably two of the hottest months we’ve ever seen in real estate,” he said.
“Then soon after that, the cooling off period started and I think a lot of us thought, ‘Okay, this looks normal, we’re looking at a market correction.’ But it was a little faster and a little faster than we expected.
Now, moving all the way into 2023, Miller said the market situation is “off balance.”
“Our sleep is getting back to normal for the region [and] We are seeing that some buyers and sellers are starting to understand where the market is headed.”
“We’ve had a few months where it’s been consistent, small decreases, but [we’re heading] Back to the more conservative market-like London-St. Thomas is used to seeing.
Given the unpredictability of the housing market, Miller said providing an accurate outlook for what will happen this year is one of the “most difficult” questions to answer.
“I think what we’re seeing are external forces that are a really tough thing to do with Bank of Canada in our market,” he said. “The economics are pointing to no further rise in inflation, but we’ll probably see some more [and] I think if this happens then our market will be cold.
Even though the market’s future isn’t set until 2023, Miller said “it’s always a great time to buy” in the city.
“There are great things going on in London,” he said. “We are a community that is growing rapidly and are projected to be one of the fastest growing cities in Canada. With a great university and great college, I think it’s still a great investment if you’re looking to buy it.
Miller said that compared to other parts of Ontario, London’s housing market is sometimes underpriced.
“Even when the trends were rising, we were still one of the most affordable communities in all of Canada, and still one of the most affordable in Southwestern Ontario,” he said.
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As LSTAR reports, the overall average price of a home in the London area was $724,583.
Looking at the chain of events brought forward by the COVID-19 pandemic, Miller said that “we are caught up in what happened in the market in 2020 and 2021,” but “that will never happen again.”
“It was kind of Sharknado of real estate,” he said. “When it happened nobody saw it coming, nobody believed it was happening, but we’re never going to see numbers like this again.”
He advises potential sellers to take a close look at recent market trends, and that “you’re not going to get the numbers your neighbor got a year ago.”
“If you’re prepared for it, a lot of the things that sold in 2018 and 2019 are going to sell in 2023,” Miller said. “So, if you take away those two crazy years, you’re probably going to have a great return. Just not the great returns that we saw.
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