London Ontario Real Estate Market July UPDATE: Listings SURGE
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- Опубліковано 11 вер 2024
- #londonontariorealestate #londonontario #lstar
London’s real estate markets continued to slow in July, with Active Listings now at their highest levels for July since 2015, and Sales at their lowest July levels, save the 2022 crash, for the past decade.
Links:
July 2024 LSTAR Statistics:
www.lstar.ca/o...
Latest figures show dropping prices, slowing sales for London-area homes:
lfpress.com/ne...
Stronger fall seen breaking Toronto housing market lethargy:
www.theglobean...
Indicators of financial vulnerabilities:
www.bankofcana...
Funds advanced, outstanding balances, and interest rates for new and existing lending, Bank of Canada:
www150.statcan...
Mortgage calculator:
www.cmhc-schl....
London unemployment rate continues to sit below provincial average:
london.ctvnews...
Banks are expecting a wave of mortgage defaults: Economists say a credit crunch could hurt us all:
www.thestar.co...
Wave of mortgage renewals drives owners to list homes, analysts say:
globalnews.ca/...
Mark Mitchell - Mortgage Broker London Ontario
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Commentary on this Channel should not be considered financial advice.
Really appreciate how concise you are in your videos. The cherry on top is how much topical humour you’re able to squeeze in with your one-liner clips. It’s a great dynamic.
Thanks scalp!! I really appreciate that :)
If things keep dropping for another 2 years prices MIGHT be low enough for the next generations for purchase. Let's hope for the best.
@@Jed-pk6zg This is the natural pathway for restoration of stability in the housing market in Canada. What we see now is unsustainable.
No cause their parents won’t have a down payment to give them. 🤷🏼♂️
You're welcome for clicking!
Lol :) Thanks Travis!!
It's almost like driving three hours each way to work in Toronto from London isn't a sustainable thing...
Hey jwg,
Lol - No way!
Totally agree with the take on waiting for renewals.. when 75% of all mortgages renew between 2024 and 2026 time is your friend and debt is your enemy!
Hey ferris,
Thanks for the comment :) I think we saw some more of that yesterday with the release of the summary of deliberations - the central bank is getting more concerned as well.
If the SLPR was based on the original price and not the lower relisted price after being cancelled, it would be much, much lower that what is quoted here. Cancelling and relisting at a lower price hides what is really going on. What I'm seeing anecdotally in London are substantial price reductions in the $50k+ range but still very few sales.
Good point.
Hey garfield,
Thanks for the great comment :) Definitely a good point - a lot of the stress is hidden in the stats - and you're right, anecdotally I'm hearing of a lot of price decreases as well.
True in my neighborhood. Speculators/investors delisting after zero bites and putting up 'for rent' signs. Only determined/desperate sellers are keeping them listed.
3500 monthly payment, insane even my 100k per year income isnt enough to qualify. Watch and wait, only way its going up is if we continue to import half of india.
Hey SquarishLink,
Thanks for the comment :) Very true - you need an income of about 150k to buy the average priced home, and London's median household income is 79,500 - It doesn't add up.
Government needed money to cover costs in Covid and save economy somehow so got in loads of students. Each student brings around $50k in a year or so.
@@KamikazeTj10😮
Welcome to Canindia :).
OK now let's cleanse some speculative based sentiments and get some price discovery sustainable within median incomes conducive to household formation..... IMO... THAT is what a housing 'market' should be..... rather than some low-rate fueled gambling Casino !
Sry for the rant.... a House should be a HOME !
Absolutely, but they are doing everything in their power to not let that happen. A debt enslaved society is a productive one.
@@markz1013Canada is the least economically-productive country in the G7...
Hey dirtlump,
Thanks as always for the comment :) I think that's what we'll see over the coming two years - How much are houses actually worth when interest rates are normalized and speculation has left (in relative terms) the market.
@@philsidock it is but all the people working 2 or 3 jobs keeps government machine pumping.
@@markz1013 That's a different point. You said that a debt-enslaved society is productive, but the facts say otherwise.
Canada is less productive than it has ever been.
Wen fraser valley? :((
So I got a 640 house for 530!!
Thanks sir!!
Lol - Congrats!!
Tiff: "What you thinking for September?"
Jerome: "Probably doing 0.75"
Tiff: "OK we'll do 0.75 too"
Lol - I can see it!
All but the most dim witted must be able to see there is a ripple affect. In Canada we are experiencing rising un-employment and record food bank usage just to name two. These things are symptoms of a big problem. If people are employment insecure and food insecure, you can bet many are shelter insecure. A ripple such as food bank usage will flow all the way up to the affordability of home purchases at today's prices. A crash, and I mean a big one is coming. Count on it. For the mostpart only the dumb money is buying now, or will be anytime soon.
We are in the misinformation age.
If you only watch mainstream media like Global, CBC and CTV you will happily walk off the cliff because they say you will land on a bed of roses.
It's all a scam.
Another 30-40% price reduction is inevitable. Just wait and see. Don't buy any home until the end of 2027 if you can wait.
What is happening is people getting out NOW after buying 5 years ago and making some gains then buying cheaper somewhere else.
Personally, I find the Canadian parliament funnier than Monty Python.
Your British parliament is exactly the same.
@@TT-fq7pl Keep telling yourself that.
@@Aitch-102 Same yelling and stomping during debates. Part of parliamentary democracy. Just a fact, mate. Not making it up.
LOL - the similarities are there though aren't they?
@@MortgageBrokerLondonOntario No, you sit under us, not the other way around.
3:00 does the sales to price account for realtors that list then delete and re-list, for example:
original price is 500k. highest bid is 490 so the realtor takes the listing down and re-lists for 480 then sells to that person who offered 490. What is the SLPR for that?
Hey Summer,
Unfortunately I don't think that's incorporated- so the SLPR is probably a fair bit lower.
7:00 to comfortably afford a 3500-3700/month mortgage payment you would need to make over 120k a year and there are not that many people in the London are making that kind of cash. These valuations also make it impossible to consider buying as an investment property because they would have to make north of 4k in rent to be profitable and if someone can afford 4k in rent they may as well buy.
Great video, again. As a well qualified 1st time buyer, I just want to give some colour. It's insane out there. People are insane. That is all.
Hey tyler,
Thanks for the comment :) Are you seeing a lot of competition in your market?
Wow that spreadsheet is huge. You might want to explore the possibility of creating a local database. That should make your life easier
Thanks for clickiiiiing!!!!
Thanks Brandy!! Very much appreciated :)
@@MortgageBrokerLondonOntarioPlease dont change this greeting!
The fall market is always overhyped. This may be the slowest fall in RE history.
Hey ryan,
Thanks for the comment :) Definitely a good point - it was last year as well. We'll see how August and September's data looks.
Like ive said many times.
The standoff is the long boring part.
Wake me up when we have the 5 year anniversary of the covid lockdown.
Thats when the panic selling will start.
Hey user,
Thanks for the comment :) Yep - 25 and 26 should be particularly interesting - we'll find out where the market price (absent free money) really lays.
Will you be doing a video on predicting how the stock market crash and immediate calls for lower interest rates in the USA will affect our rates and market? Would you agree that historically the result is always money printing and higher inflation? The one thing we can count on governments to do is be self-serving and inflation is in their best interest.
Hey brian,
I think I've touched on it here and there - that the Fed will most likely, inevitably, return to money printing. Once it starts its very difficult to stop. My guess is it will be coming up sooner or later, so I'll definitely have a video out :)
Fraud ponzi's crash like 1929 with a 89 percent drop. What we see today is from no one getting arrested for rigging and manipulating Wall Street. In Iceland they locked up the bankers for the same thing.
Noticed you have Danielle DiMartino's book. Smart reading. ;)
She's excellent! Great read - a lot of insight into the Fed that you don't often hear.
Another reason not many buyers out there: the artificially low rates in 2020-2022 brought forward demand. People thought they could afford more house than they could. Anyone who didn’t buy during that time realized how irrational the market was, and they are still not going to buy until prices come down. There are no more FOMO buyers, and those buyers from 2020-2022 are going to be sellers now.
Hey daver,
I think that's a great point - a lot of demand got pushed forward (especially for those who thought they would be permanently priced out). Thought that does create some problems for the 'supply will send prices to the moon forever' argument.
Add the fact that less young people are interested in starting on the property ladder since most new condos are unlivable or too pricey for them to qualify.
Thanks, Mark!
Hey Bella,
Very welcome :) Thanks as always for the comment!
I didn’t click anything it was a tap
Lol - somehow I don't think 'thanks for tapping' would have the same ring to it?
Yay!! more bag holders
I like your videos,,, quite informative 🌹
Thank you 😊
Why was there no release for june?
Hey Chris,
From what I understand it had something to do with changing MLS systems - but that's just from what I've been told - LSTAR didn't give a release to the public (as far as I know).
3500 hundred dollars a month or 42000 a year NOW what kind of job can I get in London that supports this average house price even if you keep your bills at 15000 to 20000 per year you have to eat so ad another 15000 and depending on your vehicles and your taste for a holiday your already at 76000 and this number is after taxes without vehicles or holidays so to calmly sit there like the tax man telling you what you owe oblivious to the fact of reality that people cannot and will support these house prices no matter how you calmly juggle numbers that even 10 people buying one house each making 20/hr would struggle
Hey jay,
Thanks for the comment :) Yep - very true - London's median household income is 79,500 and about 150k is needed to buy the median priced home - they don't exactly match.
You are expected to either live with family, or get roomates. Meet a spouse and qualify to buy under two incomes. Live in 500sqft with your spouse for the first 5 years (hope you like them). If you cant handle that, think about leaving canada.
Look London was always a cheaper market with lower incomes then prices jumped so now its completely out of reach for the local buyer's and the GTA buyers aren't coming to bail you out. That's
Hey pablo,
Thanks for the comment :) Yep - I think thats definitely part of it. With the GTA slowing, London isn't as enticing as it once was.
Few retirees move to London, they'd move to Windsor instead.
hi, so does the lowered value of our dollar today make a difference in comparison with the past markets, etc? even one year ago?
No, price is in Canadian dollars. Is not in foreign currency so not affected for us.
Ohhh I thought rates cuts would save us ?
Lol - oh its coming.. tomorrow.
Any plans to do Montreal data?
Hey egg,
Thanks for the comment :) Its not really my area of expertise - I wouldn't know the local intricacies or the market that well.
Good video Mark
Thanks jeffee!!
And prices are still way to high.
Hey straw,
Thanks for the comment :) Very much so for the majority of the population (especially here in London).
I bought an income property in June but I'm still tracking the market. I needed some where to live but still wanted help on the mortgage and I found this to be the best way but I don't know if there's ever a " right time to buy "
Hey dannyboy,
Thanks as always for the comment :) 100% agreed - there never is a 'best time to buy' - I always advise that the best time is when its right for the homebuyer :)
Time to buy.
Spoiler alert: Real estate cooked for a decade. -50%
Glad I clicked!!!!!
It was an early spring market, there will be an early fall market.
Hey Tyrannosaurus,
Thanks for the comment :) Do you think we'll see a big uptick in August?
@@MortgageBrokerLondonOntario I don’t have a crystal ball, but I think there will be a similar event as we had in the spring market. Early elevated activity then a sudden (early) end.
Yes! More Python!
lol :) I'll see what I can do!
@MortgageBrokerLondonOntario oh, no I meant, I was happy to see you use python again. Not demanding more... keep up the great work. You're providing excellent value.
So in London that home listing price should come plummeting down. If we don't have shady Realtors.
Definitely a falling knife. Not including job losses and I already know people in the company that where there's been layoffs. Tons of really good information on X platform red pill Rick make some really good charts
Hey Andrew,
Thanks as always for the comment :) I am starting to see at least some posts from realtors 'urging' sellers to adjust their expectations. I'm not sure where sellers would get the idea that prices are going to continually move up?
@@MortgageBrokerLondonOntario from my wife's co-workers who are new to the country say bc that demand is still very high from high immigration.