2016 Banner Year for Oakville Market
The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in December was $1,089,000 – up by a staggering 33.1% versus the $818,029 average price posted in December 2015. This brought the average selling price for 2016 as a whole to $1,064,814 (up by an equally staggering 27.1% versus the 2015 average selling price of $837,644). This level of price appreciation was approximately ten times greater than the rate of inflation in 2016, pointing to the value of home ownership as a long-term investment.
In pure dollar terms, the average Oakville homeowner experienced a gain in home equity of over $227,000 over the past 12 months. Added to this excellent return is the fact that primary residences are capital gains tax exempt, unlike virtually any other form of investment. Given pent-up demand due to low inventory in the market and the prospect of only slightly higher borrowing costs, 2017 is likely to be another excellent year on the price front.
The Oakville resale market recorded 121 sales in December, unchanged versus the 121 units sold in December 2015. The December performance propelled total 2016 sales to 3,348 – up by a very respectable 8.1% versus the 3,096 homes sold in 2015. A relatively strong local economy coupled with low borrowing costs and the ever-growing cachet of the Oakville market were the main factors behind the solid volume performance.
If the market had benefitted from more listings/choice for buyers, the 2016 sales total would have been even greater. That said, it is likely that there is still a substantial amount of pent-up demand in the market as we enter 2017, a fact which obviously augurs well for volume in the months ahead. Of the 121 homes sold in December, 77 (63.6%) were fully detached homes and, of these, 53 (68.8%) sold in excess of $1 million. Look for the percentage of homes sold over the $1 million mark to further grow in 2017, as the Oakville market is expected to continue to shine.
Related: Monthly Neighbourhood Market Reports
Oakville Transactions - NOV 2016
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|
|West Oak Trails||17||$947,158||12|