Number of London area homes listed for sale hits all-time low in September

The London area saw a record low number of homes listed for sale in September, which meant fewer homes sales for the month amid higher prices, according to the local real estate association.

The London and St. Thomas Association of Realtors say theaverage price of a home was up 21 per cent over the same time last year to $386,520.

Only 776 homes were sold last month amid 1,470 listings, the lowest level of homes for sale in the region ever seen, according to association president Jeff Nethercott.

"The available homes in our region are the lowest level we've seen on record," he said. "That continues to drive the sellers' market."

But while real estate agents call it a "seller's market," fewer people seem to be selling. Last month, sales weredown by six per cent compared to the same time last year.

Mortgage rate hikes loom

With rising inflationand rising borrowing rateson the economic horizon, it means many homeowners mayhave become prisoners to the market, unwilling to sell for fear of having to buy a new home at higher prices under higher mortgage rates.

"The lack of inventory that we're experiencing today is due to being in a strong seller's market," Nethercotsaid. "At this point, it's too early to tell the exact effect the increase in interest rates will have."

Except that's not what some banks are saying.

The Royal Bank of Canada reported last month that housing affordability nationwide will only get worse, even after it reached its lowest point in 30 years.

Still, London realtors are quick to point out that this city remains relatively affordable, at leastcompared to most major real estate markets in Canada.

At $386,520, the average sale price in the London region is still far below many similar-sized municipalities, such as Niagara Region where the average sale price is $413,907 or Kitchener-Waterloo where homes sell on average for$493,727.

5 signs that London is still in the grip of real estate fever

7 years ago

Duration 1:35

5 Signs that London is still in the grip of real estate fever