The vast majority of home buyers in London, Ontario are young families looking to settle down in established neighbourhoods where they can raise a family. Northwood Mortgage™ is experienced in the London property market, and can provide you with the ideal mortgage solution for your needs.
The London, Ontario property market has remained balanced for the last several years, with a slight tendency towards becoming a seller’s market. This has caused the average cost of a home to increase four per cent year-over-year; it was approximately $265,050 in 2015. Sales have also been growing gradually, reaching 8,206 in 2014/15 compared to 7,474 in 2013/14.
Owing to the affordable housing options, the region has been attracting an increasing number of new immigrants to Canada. Other factors supporting the demand for housing in London include:
First-time buyers are the main drivers of property demand in London-St. Thomas. Most young families are buying homes in the lower bracket, which is causing move-up buyers to buy larger homes, and in turn, older buyers to move to smaller, single-storey homes.
Townhouses are the most common condo-style in London, and were selling at approximately $150,829 towards the end of 2015. There was a notable increase in high-rise condos in the London downtown core, many of which are purchased privately via the developers. This market is expected to remain fairly stable for a couple of years.
The luxury home market in London is quite small but active, but the number of high-end properties is steadily growing. In 2015, over 290 homes worth $500,000 and above were sold, compared to 215 in 2014.
With the rising cost of home ownership, as well as the demand for property in London, mortgage rates are expected to rise nearing the end of 2016 – but the high cost of homes will not adversely affect housing demand because the qualifying income for a mortgage approval is still low and available to many prospective buyers.
A one-year mortgage rate is presumed to be between 3.0 and 3.8 percent, while a 5-year mortgage is projected to be between 4.7 and 6.0 percent.
Still, sales should increase steadily due to additional stability and job growth, while the increase in home vacancy (more listings) should ease the demand and cost of home acquisition.
With the increasing housing market activity in London Ontario, there is a huge opportunity for first-time home buyers, as well as condo and luxury home buyers, to get a piece of good real estate in the region.
However, you need to find trustworthy mortgage brokers in London to help you make the best deal possible. Northwood Mortgage are real estate professionals in London, with meaningful contacts in the property and banking industries in the area.
In addition, we keep a keen eye on trends in the region so that we can help our clients find the best mortgage deals for their situation.
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