London price growth to strengthen amid inbound migration

Intensified migration from the Greater Toronto Area will push the average home price in London, ON up to as much as $450,000 this year.

“2019 was definitely what we would call a sellers’ market,” according to Earl Taylor, the president of the London and St. Thomas Association of Realtors. “There are definitely more buyers than there are sellers right now.”

Many of these buyers are fleeing from the acute market conditions in the GTA, largely driven by the lack of housing supply along with immense pressure from investors and speculators.

On an annual basis, the average home price in the City of London grew by 12.7% in November, reaching nearly $427,000.

And this is likely to carry over much of the new year.

“I think 2020 will be very similar to 2019,” Taylor told CBC News.

CMHC senior market analyst Anthony Passarelli added that London’s prices will likely break records this year.

“On the high end $450,000 and on the low end $430,000,” Passarelli stated. “The average price in the City of London, the range for that you would bump it up a little bit higher.”

In terms of sales activity, this year will prove to be steady for the London market, CMHC data showed. On the low end, about 9,200 deals will close, and 10,200 on the high end.