Is The London Ontario Real Estate Market Good or Bad Right Now? It depends on whom you listen to, believe or read, your perceptions, biases, common sense, or your financial IQ. Or, you can separate the facts from opinions.
I wrote a blog a few years ago when the real estate market was in a frenzy and the interest rates were at the lowest about how listening or reading the news can harm you.
Well, the talking heads from all the media were spouting opinions or fear-mongering; they just reversed their direction from positivity to negativity because they wanted attention, just like an auto accident or Hollywood drama queen, and attention pays the bills!
Yes, interest rates have doubled, our governments keep printing money, and some people are struggling financially, but they did when times were good! We hear about real estate prices dropping; it’s not that home prices have dropped; home values are now congruent with buyer demand. Up to a few months ago, it was a seller’s market, with fewer homes on the market and more buyers than sellers.
The fallout is that many homeowners are or will be mortgage poor and will find out sooner than later that their enhanced home valuation when they bought is nowhere near today’s market. The same with the home seller down the street thinking, hey, Bill and Mary sold their home in three days for $165,000 more than their asking price and our home is nicer than theirs! But oops, reality sets in within 7-10 days when there are few showings and negative feedback on price. If they reduce their price, is it prices dropping or a market stabilization congruent with valuations? So, in 30 days or 45 days, they drop their price or take the home off the market.
Yet, Bob and Sue, understand supply and demand and price their home to reflect today’s market and sell their home within a few days and are happy. So is the buyer, who had seen perhaps 6-10 homes, was familiar with prices and values and chose the home that was the best value for them!
Without going on for a few more pages here, for buyers, sellers, Realtors, talking heads, fearmongers, and complainypants, take your head out of the sand and face reality; things aren’t that bad. Houses and condos are selling mainly because those buyers and sellers are influenced by common sense and make decisions rationally, not emotionally.
Not for the buyer and their Realtor who have a misconception of the market and make offers on a home at insulting prices or the disillusioned seller and their Realtor listing their home comparable to the real estate market in early 2022!
In ending, this is one of the greatest times in the market for a rational buyer and the seller. The facts prove it, not my opinion; I would be glad to share those facts with you. For the fence-sitters out there, if you sit too long, you may want to have your family doctor refer you to a proctologist!