The Toronto real estate market has been news worthy for years. As long as most of us can remember I imagine. Whether the stories were good or bad, they were always there.
The London Ontario real estate market has been up and coming for the last couple of years. Making headlines left and right.
Is London Ontario the new Toronto real estate market?
How do they compare?
The Toronto Real Estate Market report for February 2019 based on MLS stats shows that the average sale price for a detached 3 bedroom home was $1.1 million compared to London Ontario at $441,000 for a similar home.
A huge difference in overall value of properties, however the most striking comparison is the change over time.
The Toronto Real Estate market has seen very little growth in value over the last 12 months whereas London Ontario has seen substantial increases upwards of 38% in one year.
This type of rapid increase was a common thing in past years for the Toronto real estate market but is a completely new experience for London.
Why The Changes?
There has been much speculation around the increase of London Ontario home values and the decrease over all in the Toronto real estate market. For the most part, what has been published is exactly that. Speculation.
Some say the demand in the Toronto real estate market became to great and priced buyers out of the market where as with London, the home values have been historically low and affordable leaving a rapid increase in value not as concerning.
Like Toronto did, London is rapidly expanding into a popular metropolis with a ton of things to offer. This has even caused an increase of home buyers expanding their search beyond the Toronto Real Estate market and in to London.
With millennial home buyers commuting to Toronto for work is not an issue. Neither is job change or working remotely where your geographical location doesn’t necessarily matter. Finding affordable housing does therefore leaving Toronto for London makes sense.
With the aging population expanding beyond the Toronto Real estate market also makes sense. A lot of equity is sitting in their Toronto home and again with geographical location not playing a factor in retirement cashing in on their Toronto investment and relocating to a city such as London Ontario where similar homes are half the price is a smart financial move.
These are common scenarios London Ontario real estate agents are facing. An influx of buyers from the GTA is being reported as one of the reasons for an increase in demand for homes listed on MLS in London Ontario.
Lastly, low inventory in homes listed seems to be a global issue and not just that of the Toronto and London Ontario real estate markets.
Why do you think that could be?
Affordability? Interest rates? Or is it generational?
We would love to hear your thoughts and predictions.