It's a seller's market, but the London region's housing inventory is down

The London St. Thomas Association of Realtors (LSTAR) has released its housing stats for September, and they show that available inventory is down almost 50 per cent compared to five years ago.

London is known for being one of the most affordable cities in the country, said Earl Taylor, president of LSTAR.

When people come here to buy, they snap up what's available. 

"People are coming to St. Thomas, London, Elgin and Middlesex county because it is so affordable and that is eating up our inventory. People are buying more homes than homes coming out on the market," he said.

Taylor says that many buyers come from outside of the London area. When they purchase, they don't have a home that can be put back into London's market..

First time home buyers are 'driving the market'

First-time home buyers are driving the housing market right now, Taylor said. Having good jobs and a steady income, they are the ones who are looking to purchase. 

"They are anxious to get a home. Interest rates are low and job security seems to be fairly stable," he said. 

But with low inventory and a high demand, house prices are increasing. 

 LSTAR reported that London, and its surrounding areas (Elgin and Middlesex counties, St. Thomas and Strathroy) all saw a jump in sale prices in the last month. Elgin County had the biggest jump with a 20 per cent increase.

The increase is largely due to bidding wars between buyers, Taylor said. 

"We're still seeing multiple offer situations where three, four, five, ten offers come in on the same property. That drives prices up because people are paying a little bit more than what they would under normal circumstances," he said.

In September, the average house in the London area sold for approximately $412, 208, according to LSTAR. 

Compared with the rest of the country, London is ranked the third-most affordable area out of 12 major city centres.