The housing market of London, Ontario, posted a 10% increase in prices last year, and prices could rise further as demand continues to swell, according to the latest report from RE/MAX.
The average sale price in London sat at $416,644 last year, making it "moderately affordable" for homebuyers. However, RE/MAX said real estate values in the city are actually undervalued.
Still, London prices are expected to increase by 5% this year to hit $437,476.
"London's growth continues, thanks to move-over buyers from the Greater Toronto Area over the past five years. These conditions are expected to continue this year, impacting housing demand and supply of London real estate," said Lydia McNutt, Content Manager at RE/MAX Canada.
London ranked eighth amongst the 16 major cities in Canada in terms of affordability. To afford monthly mortgages, homeowners in the city need to set aside 20% of their monthly income on average.
"Because of its affordable prices, first-time homebuyers are active across all property types when entering the London real estate market. Consumer confidence is high in the region, and activity is steady, with buyers confident that they will find a property that is suitable to their needs and wants," McNutt said.
Homebuyers can snap up the most affordable home deals in three neighbourhoods: Old East Village, Ealing Park, and Bellwood Park.
On the other hand, Masonville, Hyde Park, and Westmount are three neighbourhoods with the most expensive homes in the city.
