Thinking about buying a home in London? There's more available now than in years

London realtor Doug Galbraith said the last time he saw a housing market as slow as today's was in 1983 when all the houses on his childhood street were listed for sale at once.

Now that supply is up and demand is down, he said it's a good time for prospective buyers to invest in a home. 

"I always say the best time to buy is today, but in my real estate career, I've never seen anything like this," said Galbraith, who is with Blue Forest Realty. 

"A couple years ago, you would put 'for sale' signs on lawns with 'sold' stickers already on them," he said. "Realistically, now you're looking at 30 to 45 days on a property that's priced right. If it's not priced right, it'll just sit."

London is one of several Canadian cities that have seen a market slowdown, specifically when it comes to condos. 

Apartment condo sales are down 28 per cent compared to this time last year, while townhouse condos are down 25 per cent, said London and St. Thomas Association of Realtors (LSTAR) chair Dale Marsh. There have been 479 condos listed so far this year in London, according to LSTAR. 

"We went from a provincial election straight into a federal election, plus the perfect storm of having tariffs thrown in there at the same time, so I think there's some nervousness of people in the area," Marsh said.

The average price of a townhouse is sitting at $516,000, while apartment condos are around $381,000, Marsh said, adding that while prices have spiked post-pandemic, the market only rises or falls by about two per cent each month. 

"It's a little bit of a stable rollercoaster," he said. 

Realtor Jie Dan of Sutton Group said part of the reason people aren't buying, despite the flat market, is the high cost of living.

"People aren't usually looking at the overall market prices over the years, they're just looking at whether or not they can afford it," she said, adding that many people cannot. "A lot of people do not have the disposable income."

However, she said people who are in the financial position to buy a home should take advantage of the current market.

"Don't wait. If you're a first time home buyer and can afford it, you need to make that investment," Dan said.

Buyer, seller behaviours changing

Because it's a buyer's market, Galbraith said he's noticed that buyer behaviour has changed, with people taking more time to close a deal. 

"Now you have a little more time to make an educated decision," he said. "You can bring in your home inspector or father-in-law who's an electrician to give your house a good going-over."

Buyers also have more swing when negotiating, he added. 

However, it's a more challenging time for sellers, the realtors agreed.

"You've got some extra competition, so you want to make sure your pricing is bang on," Marsh said.

Galbraith said he is even cautioning some homeowners against selling their property until London becomes a seller's market again, unless they absolutely need to.

"If you're just selling to see what's going to happen, I would recommend you wait," he said. 

When will the market balance out?

Marsh said he expects the market to turn around by summer or fall, following the past few months of pent up demand. However, unless the cost of living changes, Galbraith and Dan are less hopeful.

"People are drowning and I see it," Galbraith said. "I've done mortgages for people in the last six months that are just trying to pay their bills."

Dan said the last time she experienced a market like this was in 2007, and although that quickly started to balance out in 2008, she said the current slowdown won't be resolved for at least two more years. 

"It's not an easy recovery this time," Dan said. "This is going to be painful and slow."