About Middlesex County, ON

“Where is the condo market headed, in Canada & specifically London Ontario?” I was asked this question today by a client who wants to sell her condo in Toronto and move to London Ontario. Below is part of what I emailed to her.

The oversupply of condominiums in Canada is becoming a concern as two-thirds of all housing starts are condos and the supply of completed but unoccupied condominiums is high.

Vancouver & Toronto lead the way in new construction and as an example; Toronto has 132 high-rise buildings under construction compared to 17 in Chicago or 86 in New York City.

In a report by Bank of America Merrill Lynch, if Toronto condo developers stopped developing and completed their existing projects, there would be enough to supply the market for five years! The report also stated that between 40-60% of the sales of pre-construction units are to investors!

What is going to happen when units are on the market longer, are not selling and supply out paces demand? Yes, prices tumble and turmoil accelerates the uncertainty of real estate which in turn can affect all of Canada.

In London Ontario, we too have many new condo projects under way but the majority of units being built are one floor townhomes with amenities that are attracting the Boomers and the high-rise buildings are actually attracting the Boomers with very few investors on the scene.

As I wrote yesterday in my blog about why London Ontario will not experience a real estate bubble burst, the stability in London and the new demographic changes for the fore seeable future are quite positive.

Will the housing market crash in London Ontario? Is there a real estate bubble in London Ontario? For the last few months, economists, the heads of three of Canada’s major banks (BMO, CIBC & RBC) agreed that the market is reaching its peak and though they do not foresee a crash, they feel that prices are likely to decrease this year and perhaps decrease for 2-3 years. (Some predict 25% across Canada)

Some are even predicting gloomier thoughts, such as a real estate bubble ready to burst. That may be so for cities like Toronto, Montreal, Calgary or Vancouver where new home and condo construction is at an all time high.

I don’t think we will see this decrease in prices in London Ontario for the following reasons:

• The average selling price for a home in Canada at December 31, 2011 was $347, 801 while in London the average price was $244,430 which shows that London has not seen the influx of investors, speculators or the herd mentality which believe if prices are rising, that they should jump in and buy a home so that they do not miss out and benefit from those soaring prices. So as a result, housing is perceived as an asset that can only rise in value and the herd just keeps on going in debt and piles it on.
• It is believed that median house prices should be no more than three times larger than the median household income. Today, prices stand at 4.6 times the median income across the major cities in Canada yet London is a little under that 3 times the median income level!
• Interest rates are at their all time low which usually means a real boom for home buyers but with debt ratios for the average Canadian rising, inflation being curbed to a minimum and tighter lending rules, London historically has stayed the course with real estate prices being less than the Canadian median.
• I am seeing more and more Baby Boomers moving to London because of lower housing costs, London’s great medical facilities, the resurgence of downtown London, the multitude of recreational facilities, golf courses and situated between two of the Great Lakes, Lake Huron and Lake Erie. These folks have cash or little debt, are leaving the larger centres and are cashing out on the rising prices in their communities.

Is London Ontario immune to the rest of Canada? Of course not but the influx of middle class newcomers to London with money will keep our real estate market stable for years. By no means should we ignore the global economy either but as demographics change, a house or a condo changes from bricks and mortar to a home.

In 2011, 31 homes changed hands in Komoka with the average asking price of $347, 491 which actually sold for 97% of asking which was $338,543 and these were on the market for 48 days.

Komokais less than 15 minutes west of London with easy access to Highways 402 and 401. Komoka is between Mt.Brydges and Kilworth and from London, head west on Oxford Street.

Komoka is a crossing point for many railway lines and was formerly a railway hot spot featuring various hotels and development. Today, the Komoka Railway museum keeps the local railway history alive and features unique artifacts such as a 1913 Shay Steam Engine and a 1972 Grand Trunk & Western caboose. Go to http://www.komokarailmuseum.ca/ for more information,

There is an elementary school, Parkview Public School, and Providence Reformed Collegiate, a private Christian high school in the village. The village also supports a number of youth sports teams, including baseball and soccer.

Komoka is currently experiencing a population growth due to a new subdivision developments. Consequently, the elementary school's enrolment has rapidly increased resulting in substantial renovations.For a list of available homes for sale in Komoka and surrounding area, just drop me a quick email.

One of the most famous spots in Komoka is the Little Beaver Restaurant, always crowded and a meeting place or stop off point for those heading to or from London.

In partnership with Delaware and Mount Brydges, the three communities rotate responsibilities of hosting Canada Day celebrations. The partnership is called "Del-Ko-Bridge". The celebrations feature a free pancake breakfast, morning parade, events and competitions throughout the day, a baseball game at night with fireworks following the game.

City of London renews commitment to make homeownership easier

The City of London has announced the renewal of a program offering affordable homeownership. This very successful program, previously known as the Affordable Homeownership Program has been renamed Investment in Affordable Housing Homeownership Program and has been improved to offer more Londoners the opportunity to own their own home.

The program consists of an interest free loan for qualifying home buyers to assist with down payment and closing costs.

To be eligible, households must have a gross household income of $55,000 or less, and must qualify for and be pre-approved for a mortgage at a recognized financial institution. The selling price of the home must be no higher than $145,000. In addition to receiving 5% down payment assistance, qualifying home buyers will receive closing cost assistance of 3%.

The Investment in Affordable Housing Homeownership Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Canada-Ontario Investment in Affordable Housing Program (IAH) which offers low-to-moderate income earners the opportunity to purchase a home in London and Middlesex County.

The federal and provincial governments have set a deadline of March 31, 2012 to expend the funding allocated to the City of London.

About the Program

The Homeownership Assistance Program is an interest free loan providing 5% in down payment assistance to interested eligible applicants in London and Middlesex County only. Qualifying home buyers can also receive another 3% of the cost of the home to assist in paying closing costs including legal fees, disbursements and registration on title.

Applicants must be renters, at least 18 years old, must not currently own a home or a residential property in whole or in part (including recreation or cottage property). Post secondary graduate students may qualify to deduct their annual Canada-Ontario Integrated Student Loan payments from their gross annual income.

Eligible applicants can select a home of their choice in the open market in London or Middlesex County only. Eligible applicants must meet all the specified requirements, income criteria and must be qualified for a mortgage at a recognized financial institution. A home inspection by a Registered Home Inspector or an Associate/Applicant Member of the Canadian Association of Home and Property Inspectors is also required.

Applications are accepted on a first-come, first-served basis. Those selected purchasers must find a suitable home priced up to $145,000 by the provincial deadline of March 31, 2012 (the actual closing date of the sale may be after that date).
For full details on the program or an application package please visit www.housing.london.ca or call 519-661-2500 ext. 5523.

31 Houses in Kilworth, a short drive from London sold in 2011. On average these were on the market for 43 days and they sold for on average of $397,810 which was 97% of the asking price of $409,533.

Currently there are 7 homes for sale in Kilworth with an average asking price of $411,736. As you can see, Kilworth remains a neighbourhood in demand because of its beauty, quaint small community charm and of course, nature.

Kilworth is a quiet enclave of new and mature homes nestled in a village 8 km west of London. It meanders along the Thames River and offers all the amenities that you would expect.

It is located in The Municipality of Middlesex Centre, formed on January 1, 1998 with the amalgamation of the former Townships of Delaware, Lobo, and London, is a predominantly rural with a population of approximately 16,000 over an area of 587.22 sq. kilometres.

The homes in Kilworth are situated on large lots and easy access to all a small village offers. Close to great golf courses like Fire Rock, Riverbend, The Oaks, Oxbow Glen and Hickory Ridge

Beautiful Komoka Provincial Park is less than 2 km away and offers great walking and hiking trails.

For a list of current homes for sale in Kilworth feel free to contact me.

For more details or other information concerning Kilworth, fire away. If we don't know , we know whom or where we can get that information for you.

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