London Ontario Mortgage and Housing Report Winter 2016
Altrua Mortgage Brokers London is pleased to present the Winter 2016 London Ontario Mortgage and Housing Report. This report is based on reliable information from the London Association of Realtors and the Canadian Mortgage and Housing Corporation. The average price of a home, including condo and single detached is up 3.1% for 2016. This growth is projected to sustain in 2017, and perhaps moderate slightly in 2018. The following information from the CMHC supports these findings from the London Ontario Real Estate Association.
London Ontario Housing starts set records in 2016, and will be strong in 2017. More than 800 new single detached homes started construction in London in 2016. This is the first time the area has seen this level of growth since 2012. In 2017, builders will start construction on between 2300 and 2800 new homes, including both detached and multi unit residences. This level of construction is strong compared with the 5 year average of 1250 to 1450 new homes per year. New home builds will continue to be supported in 2017 given a very ‘thin’ existing home, resale market in London.
Sales of existing resale homes will drop slightly in 2017 and 2018, but will remain at strong levels. Specifically, sale prices are expected to land in the $282,000 and $290,000 range in 2017, compared to between $274,000 and $278,000 in 2016. This grow in average sale price is expected to trend into 2018 as well.
Rental vacancy rates are expected to remain low in 2017. Rental property vacancy rates will remain near 2.9% for 2017. New Canadians to the area, as well as the millennial generation will continue to rent as they move into the London work force. This will continue to result in a long term demand for home buyers, as rent rates continue to remain relatively high compared to mortgage and housing carrying costs. Rental property investors will continue to find London Ontario a diverse, stable and reliable area to purchase rental property investments.
London Ontario Employment rates will trend up in 2017. Specifically, 253,000 Londoners are expected to be full time employed in 2017 compared to 249,500 people in 2016. A relatively weaker loonie and stable US demand will continue to support London’s advanced manufacturing economy, and finance, real estate and construction employment will also add growth to the area. These employment trends are projected to outpace housing carrying costs.
Mortgage Brokers London Ontario. Projections from mortgage brokers are for mortgage rates to remain relatively low throughout 2017, remaining in the low 3% to 3.5% range for 5 year fixed mortgages. London home owners may continue to receive rates in the 2% range for shorter fixed terms or in variable rate mortgage throughout 2017. General affordability will remain excellent for mortgage financing given wholesale rate discounts that London Mortgage Brokers are able to provide to clients. This will continue to allow for growth in sales prices in London over the next 2 years.
Contact Altrua London Mortgage Brokers for more information on affordable mortgage financing strategies unique to your situation.