Is London Ontario in a real estate bubble? If so, what will happens if it bursts? A quick look into the thoughts on the street from the professionals.
What even is a real estate bubble anyway? Besides a term used very loosely by real estate agents and the gen pop in conversation over the water cooler.
A real estate bubble sort of mirrors the definition of an economic bubble and in regular folk terms this means that if London Ontario were in a real estate bubble then houses are selling for more then they are actually worth.
I may as well put a disclaimer in now! The following information provided is opinion only formed on facts and experience by myself in the London Ontario real estate market and my own personal research and study.
So the answer to the question in the title of this blog is Yes. And No. What would you like first, the good news or the bad news?
Neither is bad news in my opinion so I will just go with it.
No. Homes are not selling for more then they are worth. London Ontario has been in it’s only little world for a number of years now. The market has been steady and homes have been selling, no real decline. Property values have been increasing although at very minimal amounts in comparison to our friends in neighboring cities. We all expected that we would eventually catch up. Not that the extreme pace we did in 2016 and 2017, but HEY! When we Londoner’s want to do something, we do it. Am I right?
All jokes aside, we have seen an increase in out of town buyers coming to London probably due to the attractive price for homes then can elsewhere be purchased in the province. In fact, so attractive that they are willing to pay more then asking in a lot of cases, because… well, it’s a good deal. And London Ontario has a ton of features and amenities that can be found in large metropolises without the price tag. So that is something that has driven prices up quickly over recent months. Coupled with quite a few months of low inventory (still wondering why this was for sure) and a strong spring market that London is already used to and here we are. Record sales for homes and growth in London Ontario Real Estate.
Yes. We are seeing prices like we have never seen before. Will it stay this way? No. Will the prices radically drop so home buyers need to panic that they over paid. No, I don’t think so. Again, the previous paragraph basically answered all the questions to this. We are catching up and sooner rather then later we will see the mania subside and we will return to the steady bliss that is London’s real estate market.
I am a glass half full kind of girl but I am also a realist. I wouldn’t blow smoke in your face and pretend that everything is all sunshine and roses however, I do not think that any of us need to worry about becoming what the media is predicting as a future of neighboring communities. Because who knows for sure that will happen to them either.
The bottom line is, we need to appreciate out city and all that it has to offer as well be excited about the growth we have seen over the past year or so. It means only good things for us.
Remember that no matter what the media says or what is going on in the real estate market, it is always wise to invest in land. Make sure to get sound advice and don’t make your decisions based to heavily on emotion and you will be fine.
My two cents anyway….
I would love to know your thoughts on the subject. What have you seen or noticed? What are your predictions for this so called real estate bubble?
Until next time……