Oakville home sales jumped 36.6% in September over the same month last year – with the average price increasing 15.5%. We’ve seen good news on the home front for a few months now and the latest statistics from the Oakville, Milton and District Real Estate Board just reaffirms that we are seeing a recovery in real estate. For example, 306 homes sold in September compared to 225 last year and the average price was $564,532 compared to $488,811 in 2008.
Compare the latest figures to the statistics earlier this year:
In Milton, sales were up 30.7% and the average price rose 7.5% from $340,869 in 2008 to $366,559 last month.
On the national scene, resale activity climbed the highest level of any third quarter on record, according to the Canadian Real Estate Association (CREA). The average price of homes across the country rose by 11%. “Momentum for sales activity remained strong throughout the third quarter. Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market,” CREA president Dale Ripplinger says.
If the industry is picking up steam after such a sluggish first quarter, what’s that mean for the final three months of this year and heading into 2010? We should continue to see an upward trend. As long as our dollar remains strong against the U.S. currency there is no pressure by the Bank of Canada to raise the prime interest rate, so mortgage rates will continue to be attractive to move-up and first-time buyers.
The gains we have seen in the Oakville market are perhaps not indicative of the state of the overall economy. Although we are seeing some significant gains in the resale market, economists are still saying the recovery will be slow and fragile. Much of what happens here depends on events in the U.S. and down there consumers are still not spending, there is little demand for bank loans and the construction industry is still depressed despite government stimulus packages. Prime Minister Stephen Harper, on the other hand, is telling Canadians that they should be optimistic and that he expects a rebound in consumer spending as a signal.
Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd., Brokerage. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his recently relaunched website DanCooper.com. Be sure to catch the Dan Cooper Real Estate Education Series on DailyWebTV.com. For a free copy of his Guide to Oakville Real Estate or his booklet How To Sell Your House For Top Dollar, please call The Dan Cooper Team.