The rising price of London homes is outpacing the national trend, a new survey says, as migrating Toronto-area home buyers and limited supply drive up prices.
The median London home price rose nine per cent year over year to $365,686 in the second quarter of 2018, according to the Royal LePage house price survey and market forecast released Tuesday. The median is the midway point between the lowest and highest prices; it is not the average.
The city is among others in Southern Ontario – such as Windsor, Niagara, St. Catharines and Kitchener-Waterloo – that experienced double- and high-single-digit increases compared to the second quarter of 2017.
When it comes to specific kinds of housing, the median price of a two-storey home in London increased nine per cent from the same period last year, to $404,520. The median price of a bungalow rose 13.6 per cent, to $318,734.
A lack of local listings and the migration of home buyers out of the Greater Toronto Area are the reasons for the rising prices.
“We are still experiencing a shortage of listings in London, which is putting upward pressure on prices in the second quarter of 2018,” Royal LePage Triland Realty broker Peter Meyer said in a statement.
“London is one of the most affordable cities in close proximity to the Greater Toronto Area and attracts baby boomers who once lived in London to return to the region.”
Moving into the third quarter of 2018, housing inventory is expected to increase in the city while sales are expected to stay steady.
Nationwide, house-price increases slowed down in the second quarter of 2018, the survey found.
Royal LePage data from 63 of Canada’s largest real estate markets found home prices increased two per cent year over year to $613,968 in the last quarter. The price tag of a two-storey house increased 0.8 per cent to $720,504, while bungalows climbed 1.8 per cent to $512,979 year-over-year.
The slower price increases aren’t likely to last through year’s end, Royal LePage president Phil Sopher said.
“The market has begun to absorb and adjust to the new realities; we expect an uptick in sales volumes and prices during the second half of 2018,” Soper said in a statement. “We face shortages in our major cities, with many more people looking for homes than the market has available for purchase or rent. Upward pressure on prices will likely return to most markets this quarter.”
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