The average selling price for a home in the London region has hit a record high.
Figures released by the London St. Thomas Association of Realtors (LSTAR) shows the average sale price was $421,375 in April. That is a 14.8 per cent increase over the same month last year.
The reason for the spike in prices has to do in part with geography, according to LSTAR President Earl Taylor.
"What is happening is that Toronto, Kitchener-Waterloo, Hamilton, those major cities have priced many families out of the housing market, and I think that people are driving a little further to the London area because we are sort of a central hub with a fair distance to the larger major cities," said Taylor, who noted London is still the third most affordable among Canada's larger cities.
A lack of inventory has also contributed to the jump in home prices, with more buyers than sellers leading to bidding wars.
More than 1,000 area homes were sold in April, up 7.7 per cent over April 2018. It was the third best April since LSTAR began tracking data in 1978.
"It's a robust spring market," said Taylor. "There is no sign of that slowing down. May and June are usually our highest selling months. That is usually when the most activity occurs through the year, and we are just coming into those months right now."
Taylor believes the low unemployment rate, world renowned university and college, and the great work of area hospitals make the London region an attractive place to call home.
For those who have repeatedly found themselves on the losing end of multiple bidder situations, Taylor stresses patience is key.
"It is hard. If there is multiple offers, and we are seeing multiple offers, you may not get the first house you bid on," said Taylor. "I think a buyer needs to be patient and not get tied up in what is going on. Work with a realtor. A professional realtor knows the market. They will be able to tell you whether this is a good deal or whether you need to keep on looking."
