이번엔 영문으로 올려드립니다.
I am sick and tire of LSTAR’s Monthly Statistic News Release
Since 2007, we have read “another remarkable month for home sales activity in LSTAR’s jurisdiction” almost every month on LSTAR’s e-Stats report. Even The London Free Press looks like copying the head letter of this report every month.
But people want to know “Why these things are happening here in London”. LSTAR’s jurisdiction has been the over-demand market since late 2016. We know that GTA buyers’ inflow has been the biggest impact to this market. We understand that London’s affordable house price has been the biggest reason for their moving into this middle size town. With the rapidly increasing average house price for the last 4 years, is it still affordable here in London?
We know that this bottom low interest rate and COVID have fueled this unexpected hot real estate market. That’s the macro part of the economics, which is easier for the economists to analyze and forecast than micro.
People want to know about the micro part of economics of the real estate market, which is not easy to analyze and forecast.
In the LSTAR’s e-Stats report, the Association recorded 1,258 residential transactions via its MLS® systems – up 87.5% from May 2020. This number marks the second best May for LSTAR home sales, surpassed only by May 2017.
However, we need to look into it more carefully with a short term analysis. The average price has been slightly decreased by 1.6% than the previous month, April 2021. The new listing of May 2021 has been increased by 68% than 1 year ago. The 2021 May transaction has been increased thank to high demand and increased supply also. It made the market being changed from the extreme seller’s market to the normal seller’s market (80% sales to new listing ratio). But we are still on the lack of housing supply.
The newly applied stress rule for the mortgage looks like working somewhat as the government intended. Do you think it will keep working?
Let’s see the next data 1 month later. Then we can forecast the future trend of the market.
Remax Centre City Realty Inc.