Monday, 7 January 2013


Sales Results MLS Statistics for Single Family Homes

London 2012.

Single Family Homes across London increased only marginally .6% or 26 units for the year.  Sales were 4069 units versus 4043 units. 248 MLS “new” homes sales were recorded during the same period.

Average prices for the 12 months rose $6,227 from $258,303. The typical single family residence for the city now sits at $264,530. 

When a property is listed for sale it now has a 54% chance of selling during the listing period. This is up from 51% in 2011.  During 2012 there were 7594 homes listed for sale in London. This is down over 2011 by 5.1% (405 homes).   

The difference between the asking price and the selling price in London also improved.  Homeowners selling their homes are picking up an extra 1% when selling their home.  They are now getting an average of 98% of their asking price.  In 2011 the difference between published asking price and selling price was 97%.

London North:

The number of homes sold in the North part of London rose 3.5% (44 homes) for the calendar year 2012.  The total number of homes that sold during the year was 1320 units compared to 1276 units a year earlier.

Prices rose nicely in the North to $15,058, on average, or 4.9% for the 12 months finishing December 31, 2012. 

In 2011 only 49% of the homes offered for sale sold during the listing period.  This number increased to 52%, up 6% from the year earlier.  Active listings dropped 2.9% giving Buyers fewer homes to choose from.  2549 homes listed in 2012 compared to 2618 homes the year before . 

All indications are that as long as Mortgage rates remain under 4% and affordability remains below comparable rental rates, new home owners will enter the market and demand will remain constant with prices rising marginally.

 London South:
The number of homes sold in the North part of London fell 4.1% (63 homes) for the calendar year 2012.  The total number of homes that sold during the year was 1444 units compared to 1507 units a year earlier.

Prices remained flat in the South rising only $75 to $269,714, on average, for the 12 months finishing December 31, 2012. 

In 2011, 51% of the homes offered for sale sold during the listing period.  This number increased to 53%, up nicely from the year earlier.  Active listings dropped 8.9% giving Buyers fewer homes to choose from.  2717 homes listed in 2012 compared to 2981 homes the year before . 

All indications are that as long as Mortgage rates remain under 4% and affordability remains below comparable rental rates, new home owners will enter the market and demand will remain constant with prices rising marginally.

 Is this a good time to Move Up or Buy?

Yes! Prices in our area have moved steadily upward, but not with double digit annual increases like Edmonton, Vancouver and Toronto.  It is not logical that any adjustment would be similar.  Home price differences in the early 2000s were marginal between these markets.  Logically they have more to lose.  Our inventory is under 6 months supply and indications are that prices will continue solid.   If you had moved up in 2012 the average profit based on a $258,303 home you would have made $6,227.  Remember that as as time goes by the spread between  a $200,000 home and a $250,000 home gets larger!
 
Market increase                    $200 K home               $250 K home        difference
0%                                               $200,000                       $250,000             $50,000
5%                                               $210,000                       $262,500             $52,500
10%                                             $220,000                      $275,000              $55,000
 
As you can see, the spread grows at the same rate as the price of the homes.  Clearly today is always the best day to Buy.  Procrastination cost you money!

Is this a good time to liquidate?

We recommend waiting until interest rates rise into the 4% range or better and the US Market is out of Recession.  Then look at market statistics.

It is our intention to continue building lifelong relationships one client at a time and remain our client's personal Realtor for life. If you know of a friend, co-worker or family member who could use our help, be sure to contact us. Your personal introduction is the greatest compliment we can receive.

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