The median home price continued to decline in May from its high in February 2022. Although the decline was substantially less than in April, median home prices still dropped in May by an additional $16,000. The total decline from the February high point has been approximately $90,000 or 11.6%. It is too early to assess the impact of the Bank of Canada’s interest rate increase of 50 basis points that went into effect on June 1st. However, it would be safe to assume that it will continue to push home prices lower. The decline in home prices is becoming visible in the year-to-year comparisons as well. May showed a 17.2% increase when compared to the same period in 2021. This is down substantially from the 30+% monthly comparative increases that we saw at the beginning of this year.
Another sign of the changing situation is The Market Advantage Indicator which dropped to 44.8. This is a score that we have not seen for many years and confirms that London has shifted to a Buyers market. The Months of Inventory also increased to 1.7 months, indicating that sales volumes are declining and as a result, Buyers have more of a selection to consider. The Listed Properties Days on Market increased to 9 days. This indicates that Buyers will have a little more time to evaluate properties but the market still remains relatively fast-paced.
Successfully navigating through the selling and buying process in London requires that you select a Realtor that has experience in the London market. If you are planning to sell and/or buy a home in the next few months, please contact me via text or call me at (519) 777-6521.
