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The
decline in market activity forecast by the Canadian Real Estate Association (CREA) and Canada
Mortgage and Housing Corporation (CMHC) continued to dampen real estate sales for a second consecutive month. “This is not just our local market,” explains Joe Hough, past President of
the London and St. Thomas Association of REALTORS®, “it’s nationwide.
What
happened was this: the Great Recession created pent-up
demand in our local real estate market; then, when it became clear in the Autumn of last year that Canada and our region had successfully weathered the economic storm, that pent up
demand exploded, fueling our market for the period October 2009 until the end of May 2010.” Hough says that area REALTORS® are not concerned. “Now that demand has been met and
we’re entering into a transition period,” he observes, “a period of stabilization, a kind of tempering of the market
supported by improving
job markets, historically low interest rates and further gains in household incomes.”
A
total of 714 homes sold in July of 2010 compared to 904 in July 2009 – down 21 per cent. We are still ahead year-to-date
over 2009 by 8.3 per cent.
The
best-selling
house style in London for the month of July was the two-storey,
followed by the bungalow, the ranch and the townhouse condo.
One
of the indicators of a healthy real estate market is a modest gain in average house price over time. “The London CMA is remarkably stable in terms of price,” says Hough. “We are
consistently right-priced.”
This
month, as in previous months and years, homes in LSTAR’s jurisdiction maintain their affordability compared to other major Ontario and Canadian centers. According to the CREA’s
Major Market MLS® Statistical Survey for April 2010 (the most
current available), the average price year-to-date
for:
- London and St. Thomas was $228,283;
- Vancouver was $673,579;
- Toronto was $437,566;
- Calgary was $395,847
- Edmonton was
$339,172;
- Ottawa was $333,854;
- Hamilton was $239,819;
- Durham was $304,451;
- St. Catherines was $239,819
Sales
in London’s sister city St. Thomas decreased by 12.5 per cent
with sales being 63 in July 2010 compared to 72 in July 2009.
Year-to-date
sales (433) continue to be ahead by 2.9 per cent with sales in
the same time period last year (421).
According
to a recent study prepared for the Canadian Real Estate
Association by Altus Group Economic Consulting in Toronto, a
total of $46,400 in ancillary expenditure is generated by the
average housing transaction in Canada over a period of three
years from the date of purchase.
“That
means that this month’s sales will generate $33,129,600 of
economic activity over the next
few years,” says Hough. “It’s the stimulus the market needs
and we’re happy to contribute to making that happen for all of
us.”
The
London and St. Thomas Association of REALTORS® (LSTAR) is one
of Canada’s fifteen
largest real estate associations,
representing 1,500 REALTORS® working in Middlesex and Elgin
Counties, a trading area of 500,000 residents. LSTAR adheres
to a Quality of Life philosophy, supporting growth that
fosters economic vitality, provides housing opportunities,
respects the environment and builds good communities and safe
neighbourhoods. As members of the Canadian Real Estate
Association, LSTAR members may use the REALTOR® trademark,
which identifies them as real estate professionals who
subscribe to a strict code of ethics. The Association
operates the local Multiple Listing Service® (MLS®) and
provides ongoing professional education courses for its
members. Advertisements of local MLS® property listings and
information about the services provided by a REALTOR® can be
found at www. REALTOR.ca. More information about LSTAR is
available at www.lstar.ca.
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