A 2024 Mid-Year Review and Outlook

London Ontario 2024 Real Estate Trends

London Ontario 2024 real estate trends have been a story of their own.  Let’s break down the rollercoaster ride in the London, Ontario, real estate market in 2024. Buckle up because the first half of this year has been nothing short of a wild ride, and the second half? Well, let’s say it’s going to be interesting.

First Half of 2024: Key Trends

1. Price Fluctuations

So, here’s the scoop: Home prices did the cha-cha in the first half of 2024. In May 2024, the average home price hit around $652,877, a slight uptick from April but still 1.7% lower than last year. Meanwhile, the median list price was up at $619,950, up just a smidge from April. Nothing too dramatic, but enough to keep everyone on their toes.

2. Sales and Inventory Levels

Sales have been… let’s say “underwhelming.” Only 500 homes sold in May, an 18% drop from last year. But hey, there’s a silver lining – new listings are up. We saw 1,068 newbies on the market in May, a healthy 9.3% increase year-over-year. So, more options, but not necessarily more action.

3. Market Balance and Affordability

The market stayed balanced, with homes selling close to their asking prices. We’re talking a sale-to-list price ratio of 99.4%, meaning most properties sold for nearly what sellers wanted. Inventory levels are up to three months, giving buyers more choices and signalling a slower market than last year’s spring market.

4. Economic Influences

Higher mortgage rates have been the party pooper, making affordability a bit of a stretch for many. But, there’s a glimmer of hope with the Bank of Canada giving a .25% rate cut, with hints of further cuts, which could make borrowing cheaper and stir up some market activity later in the year​

Predictions for the Second Half of 2024

1. Price Stabilization and Moderate Growth

Looking ahead, expect prices to stabilize with a touch of growth. Experts are betting on a 4.7% bump in average prices by year-end, driven by steady demand and limited supply. So, don’t hold your breath if you’re waiting for a significant drop.

2. Increased Sales Activity

Sales should pick up in the back half of the year. As buyers adjust to the current rates and potential cuts from the Bank of Canada, come into play, expect a surge in activity. A more robust economy and steady job growth will help boost confidence and, by extension, the market.

Chart from CREAs real estate monthly report for May 2024. London Ontario

3. Balanced Market Conditions

We’re likely to see balanced market conditions continue. With a stable sales-to-new-listings ratio, don’t expect any wild swings. This means steady market activity and moderate price increases without any major drama.

4. Impact of Policy Changes

Political changes down the road? They’re the real wildcards. If an election is called earlier than scheduled, or as we approach the election, and there’s a government flip to Conservative control, new housing policies could emerge that might shake things up. This could mean increased housing supply, new incentives for builders, or changes in taxation that could either boost the market or present new challenges. It’s all about how these potential policy shifts align with market needs and economic conditions. Stay tuned because this could significantly impact the real estate landscape.

Strong Local Economy and Population Growth

London’s strong local economy isn’t going anywhere. With critical sectors like manufacturing, healthcare, and education holding steady and a growing population of young professionals and students, housing demand will stay robust.

So there you have it. The London, Ontario 2024 real estate trends. Our market has been a bit of a mixed bag in the first half of 2024, but the outlook for the latter half is cautiously optimistic. Expect steady prices, a balanced market, and possibly more action if those interest rate cuts come through. Keep your eyes peeled for any policy shifts post-election that could throw a curveball into the mix.

Stay tuned, stay informed, and let’s see where this ride takes us. Feel free to contact me for more insights and personalized advice. 

Real EState For Sale Sign for Dania Parker-Smith with contact information and her photo.

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