Why you won't see 'crazy' real estate bidding wars in London next spring
Three analysts offer their predictions for what the future holds for London real estate
New numbers suggest Toronto home buyers fuelled the frenzied bidding wars and soaring prices of this spring's real estate market in London, something analysts say will likely not be repeated next year.
According to the Canadian Mortgage Housing Corporation, about 1 in 10 real estate agents working in London this spring were from Toronto, compared to only 2.8 per cent during the same period in 2016.
The surge in big city realtors coincided with an average price difference between the average home in London and the GTA that peaked at about $600,000 and some say fuelled much of the hysteria that took hold in London this past spring.
Now that the GTA housing market has finally stabilized after years of gains followed by a slump this spring, most analysts say London's real estate market should cool off, while still seeing modest growth.
'I hate multiple offers'
Jim Smith, the president of the London St Thomas Association of Realtors said he won't miss the torrid pace of sales.
"The crazy part about it was the multiple offers," he said. "It got to the point where there would 25, 28 offers on properties. I'd be showing these houses and the cars would be lined up down the street."
"It's not healthy. I hate multiple offers," he said.
As the GTA market returns to balance and new federal mortgage rules kick in on January 1, 2018, analysts say London's real estate market is poised for more modest growth.
Here are three predictions for real estate in London in 2018: