The Federal Government changes to the Mortgage Stress Test, for both insured (less than 20% down payment) and uninsured (above 20% down payment), took effect on June 1st. This policy change affected the purchasing power of Buyers by approximately 4%. In addition, the Bank of Canada may continue to taper its Asset Purchase Program and therefore cause interest rates to slowly increase https://www.reuters.com/article/us-canada-rates-poll-idCAKCN2DE2AF.The total impact of these changes on the London housing market is not yet known. However, following the market data that is included in the enclosed London Market Report will provide an early signal of possible changes to the real estate market.
The median home sale price in London continued to show a significant increase of 34.3% when compared to May 2020. The Market Advantage Indicator remained similar to last month at 79.2. The common understanding is that scores between 40 and 60 reflect a balanced buyer/seller market. The Median Days on Market showed a rapid Listing turnover rate of 7 days and the Months of Inventory continued at the low level of .6 months.
I believe that providing valuable market information enables you to evaluate the market and make informed decisions. If I can be of assistance in creating a buyer or seller strategy that will be effective in this market, just text or call me at (519) 777-6521. Remember, in this fast-paced market it’s critical to secure your mortgage pre-approval in order to be competitive and successful in securing your next home.
