London Ontario Condo Market, What Is It Like?

Every day I get asked these 4 questions about the London Ontario condo market.

  1. “What is the London Ontario condo market doing?”
  2. “When is the best time to buy or sell a condo?”
  3. “How much should I offer?”
  4. “What should I list it for?”

​  Questions  London Ontario Condo Market

The first step in answering any of the above 4 questions is knowing how the London condo market performed factually, not by guess work or perceptions. Most days I have a detailed list of actual sale prices, days on the market, selling price ratio to the asking price and price reductions.

You can too!

From my experience in helping educate Londoners about condos in London, these averages may not hold true for your building or complex.

Before buying a condo in London or selling a condo in London, you may want to get what I call “brutal truth factual numbers” about what prices are today and not an opinion where prices are heading or what someone received for their unit 6 months ago.

Price, condition, style and location dictates what a condo sells for and how long it will take to sell. For buyers, you will be assured of not over paying and for condo sellers, you will not leave money on the table or over price your condo because of blind optimism or false perceptions!

Works every time! Want some answers?

Some Of The Best London Ontario Townhouses At Fiddlers Green

Some of the best London Ontario townhouses for size, price and locations are at the 4 townhouse enclaves on Fiddlers Green

These one floor condominium townhouses at Fiddlers Green are Sifton built and were one of the first adult style developements in South West London, between Oxford Street West and Hyde Park Road.

A short walk to one of the better grocery stores in London is Remark and across the road is Loblaw’s. There are two drugstores,  a few restaurants, banks, medical & professional offices and two bus routes make this a great and convenient neighbourhood.

50, 55, 60 and 65 Fiddlers Green is located in Oakridge in London Ontario.  and by following that link, you can find  area prices, trends and more information.

There are 4 enclaves of units:

With the so called information age being a window for knowledge, buyers and sellers of real estate should be aware of the misinformation age, be it embellished numbers, unbridled enthusiasm or false perceptions.

Always ask: “Is it true?”

One of the principles I have enforced in my career as a professional Realtor is that facts and the brutal truth about a value of a house, the market and the activity are in the best interests of our clients.

                               65 Fiddlers Green London Ontario

All Condos in London Ontario For Sale on MLS

New Mortgage Rules To Affect London Ontario Condo Sales?

New Mortgage Rules To Affect  London Ontario Condo Sales?

Effective October 17, 2016, Ottawa has taken measures that affects everyone when selling their home and for anyone taking out an insured mortgage to buy a home.

At the bottom of this post I have included the 4 major changes  and you can read them at your own peril!

read more about condos in London

What I mean is, they are easy to read and comprehend, however, these changes may slow down real estate sales ( not good for home sellers) , affect house & condo  prices, another form to fill out when filing your income tax and prevent some buyers from being able to afford buying a home.

I know why Ottawa did this, it was to slow things down in Toronto and Vancouver, but do the decision makers in Ottawa know that 70% of Canadians do not live in these two cities?

One thing that no one will answer for me yet is:

 “How will these changes affect those who mortgages are coming up for renewal?”

 If you are unsure how any of these changes will affect you, feel free to drop me an email or call me at 519-435-1600.

I plagiarized the following from The Globe and Mail October 3, 2016

As of Oct. 17, a stress test used for approving high-ratio mortgages will be applied to all new insured mortgages – including those where the buyer has more than 20 per cent for a down payment. The stress test is aimed at assuring the lender that the home buyer could still afford the mortgage if interest rates were to rise. The home buyer would need to qualify for a loan at the negotiated rate in the mortgage contract, but also at the Bank of Canada’s five-year fixed posted mortgage rate, which is an average of the posted rates of the big six banks in Canada. This rate is usually higher than what buyers can negotiate. As of Sept. 28, the posted rate was 4.64 per cent.

Other aspects of the stress test require that the home buyer will be spending no more than 39 per cent of income on home-carrying costs like mortgage payments, heat and taxes. Another measure called total debt service includes all other debt payments and the TDS ratio must not exceed 44 per cent.

Who it affects

This measure affects home buyers who have at least 20 per cent for a down payment but are seeking a mortgage that may stretch them too thin if interest rates were to rise. It also affects lenders seeking to buy government-backed insurance for low-ratio mortgages.

Why

The government is responding to concerns that sharp rises in house prices in cities like Toronto and Vancouver could increase the risk of defaults in the future should mortgage rates rise.

The change

As of Nov. 30, the government will impose new restrictions on when it will provide insurance for low-ratio mortgages.

What it is

The new rules restrict insurance for these types of mortgages based on new criteria, including that the amortization period must be 25 years or less, the purchase price is less than $1-million, the buyer has a credit score of 600 and the property will be owner-occupied.

Who it affects

This measure appears to be aimed at lowering the government’s exposure to residential mortgages for properties worth $1-million or more, a category of the market that has increased sharply in recent years in Vancouver and Toronto.

Why

Vancouver and Toronto are the two real estate markets that are of most concern for policy makers at all levels of government. These measures appear to be targeted at those markets.

——

The change

New reporting rules for the primary residence capital gains exemption.

What it is

Currently, any financial gain from selling your primary residence is tax-free and does not have to be reported as income. As of this tax year, the capital gains tax is still waived, but the sale of the primary residence must be reported at tax time to the Canada Revenue Agency.

Who it affects

Everyone who sells their primary residence will have a new obligation to report the sale to the CRA, however the change is aimed at preventing foreign buyers who buy and sell homes from claiming a primary residence tax exemption for which they are not entitled.

Why

While officials say more data are needed, Ottawa is responding to extensive anecdotal evidence and media reports showing foreign investors are flipping homes in Canada and falsely claiming the primary residence exemption.

——

The change

The government is launching consultations on lender risk sharing.

What it is

Currently, the federal government is on the hook to cover the cost of 100 per cent of an insured mortgage in the event of a default. The federal government says this is “unique” internationally and that it will be releasing a public consultation paper shortly on a proposal to have lenders, such as banks, take on some of that risk. The Department of Finance Canada acknowledges this would be “a significant structural change to Canada’s housing finance system.”

Who it affects

Mortgage lenders, such as banks, would have to take on added risk. This could potentially lead to higher mortgage rates for home buyers.

Why

The federal government wants to limit its financial obligations in the event of widespread mortgage defaults. It also wants to encourage prudent lending practices.

What is the London Ontario Condo Market Like?

What is the London Ontario condo market like now and going forward into the new year? I don’t know about the future, but I can share with you some facts.

London Ontario Condo Market

First off, 1695 condominiums have sold in London Ontario from January 1, 2016 to December 2, 2016 and on average, they took 44 days to sell and received 98.2% of the asking price.

Secondly, there are condo neighbourhoods in London where condos were on the market and sold within 3-5 days, and then there are those that were on the market longer than 90 days. It would seem obvious why some sell quicker than others.

Is it price, style, condition, location, marketing or the colour of the front door or because the moon and stars are not aligned? I don’t know about the last one but I can definitely say price, condition and marketing are why some sell quicker and for money and why some do not.

 I know which complexes, neighbourhoods and condo styles sell quicker than others and more importantly, the best values out there because I am in the market 6-7 days a week and I make it a point to know the market and not guess at it!

With the better condos in London selling for 99.2% or more of asking price, there are still units that can be had for 90 95% of the asking price.

Now the question is, are you a seller or a buyer? Both of you may want to know factual numbers and not opinions from your neighbours, your hair dresser or Uncle Bob who knows someone who knows someone  who was in real estate 7 years ago! (Seriously, I had a couple who took Uncle Bob’s advice! They now have gone through 3 different real estate representatives and their condo is still not sold! What a tragedy.)

As a buyer, knowing the difference between market price and the value price are two separate numbers, or I could add another value, the emotional perceptual value.

So, what is the condo market in London like and what will it be like next years?  For the wise who are willing to listen and take professional advice, very good, for the rest, not good!

Buying a condo in London Ontario should not be guesswork!