The New Year is here! If you’re excited to get cracking with this year’s real estate goals, then look no further than the MYLIE Group Real Estate Team. In 2023, the Ontario real estate market priced out numerous buyers. This caused several residents to relocate out of the province. Since interest rates began climbing in the spring of 2022, many Canadians have been struggling to keep up with the growing cost of living. This year, experts are hopeful that home prices will continue to drop. And more hopeful that buyers will be able to re-enter the market.
For more information about 2024’s market trends for real estate in London Ontario, follow along below.
2024 Trends in Real Estate in London Ontario
This year, London, Ontario is expected to shift into a balanced market. Near the end of 2023, the market had already begun to equalize. However, this balanced market is anticipated to remain for the foreseeable future. Neither buyers nor sellers will hold any significant advantage in the coming months. Inevitably this will help in creating a stable market climate.
However, regardless of the stability of the market, interest rates will continue to play a substantial role for buyers and sellers. Going forward, one of the biggest hurdles for buyers in Ontario will be stress tests. Stress tests are put in place by lenders to assess one’s financial resilience in the face of rising interest rates. Several homebuyers are unable to qualify for a loan given the financial bandwidth required to pass present-day stress tests. As a result, the market in London is expected to witness the following scenario. Where a considerable portion of the population will not be able to qualify for a mortgage.
Another trend to surge this year in London, Ontario real estate is access to parks, green spaces, and transit. Buyers in 2024 will be eager to find properties that meet this criteria. Connecting with nature and finding greener, more budget-friendly ways of traveling are high on buyers’ lists. For sellers, finding ways to market your property to reflect these trends will be essential.
Besides amenities and transit, individuals in 2024 will also be looking for homes with additional dwelling units (ADUs). Given the high cost of living in Ontario, it should come as no surprise that homeowners are looking for ways to offset their expenses. ADUs are a prime example of how Canadians are trying to make their residences more affordable. The addition of basement suites, carriage homes, and laneway homes will be valuable this year.
Noteworthy Market Predictions to Keep an Eye On
In 2023, the average home price dropped 11.5 percent from 2022 to $652,100. At the same time, the number of sales also declined by 13.4 percent to 5,963. This year, it is projected that the average sale price will begin to rise by three percent. In addition to this, the number of sales will likely climb by 10 percent. Despite these fluctuations, balanced market conditions are told to remain for 2024.
Buyers and sellers should note that in 2024, the most popular neighbourhoods in London are anticipated to be North London, East London, and St. Thomas. Buyers may find it worthwhile to begin their search in these areas, as current popularity often signals a wise investment. As for sellers with property in these neighbourhoods, finding a way to market your home that takes advantage of the increased demand will be critical in getting a good ROI.
2024 will see heightened demand for multifamily homes. This trend is expected to impact the construction industry. Although London has plenty of new developments in the works, many have experienced setbacks due to rising labour and material costs. However, the government has been working to revive a wartime housing program to help assist with current demands for new homes. This program will consist of a catalogue of pre-approved home designs to help speed up the process of building and minimize costs. The government announced in December that the catalogue would be rolled out on a federal level.
Contact us About Real Estate in London Ontario!
Buying and selling real estate in London, Ontario is no easy feat! For those interested in learning more about buying, selling or investing in real estate in London, contact us today. Discover more information on buying and selling in the area, when you reach out to one of our trusted team members. Be sure to check out our Instagram page here for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!