Red-hot housing moves toward record
Sat, September 8, 2007
By HANK DANISZEWSKI, SUN MEDIA
This London home's for sale sign boasts a pool.
The London-area's real-estate market is still sizzling, chalking up its second-best August for home sales ever.
And if the momentum continues, there's a good chance last year's overall sales -- a record -- could be smashed.
The London and St. Thomas Association of Realtors said 871 units sold last month, just behind the August 2005 sales record.
"We are on track to sell several hundred more homes in 2007 than were sold in record-setting 2006," said association president Mike Carson.
The hot market has made it likely 2007 will surpass, even smash, last year's sales record of 8,916 properties, he said.
For the first eight months of the year, 7,009 detached homes and condos sold, up 7.9 per cent to the same point in 2006.
The market is tightening, spurring a runup in prices.
The number of active listings in the London-St. Thomas market for detached homes and condos is down 3.6 per cent compared to last year.
The average price of a detached home has jumped to $216,632, up 7.2 per cent on a year-to-date basis.
Carson expects the dollar value of home sales this year should top 2006 by more than $200 million.
Carson said each home sale is estimated to generate another $33,000 in economic spinoffs, such as furniture sales and renovations, pumping another $30 million into the local economy.
While prices are climbing, Carson said London homes are still a relative bargain compared to other major Ontario centres or the skyrocketing prices in Western Canada.
The average price of a detached home in Toronto is $373,000, in Calgary $414,500 and a whopping $564,000 in Vancouver.
Along with affordability, Carson credits reasonable mortgage rates and consumer confidence for bolstering the market.
He said north London appears to be the hottest neighbourhood, but entry-level homes under $150,000 are in high demand citywide.
Carson said Canada has been spared the market meltdown in the U.S., triggered by a wave of defaults in the sub-prime mortgage market.
"The market we are seeing in the U.S. is not indicative of ours at all. We are confident that our more prudent lending practices and absence of heavy speculation will keep our market stable," said Carson.
Edited by ogm, 08 September 2007 - 09:18 PM.