Balanced Market Returning to Burlington
The Burlington resale home market recorded 207 sales in August – down by 13.4% versus the 269 homes sold in August 2016. This brought year-to-date (January thru August) sales to 2,071 units, down by 7.4% versus last year. Total inventory at month-end came in at 431 units, up by a whopping 94.1% versus last year but still well behind the latest 10-year end of August average of 509 units. A sharp increase in national GDP growth to 4.5% in the second quarter mirrors the strong economic conditions in the Golden Horseshoe.
This fact, combined with decelerating price growth, will likely result in an improvement in demand as we enter the fall market, despite some modest increases in mortgage rates. In addition, the psychological impact of Ontario’s Fair Housing Plan will likely have waned by the fall which will bring many buyers off the sidelines and back into the market.
The average selling price for a resale home in Burlington in August was $697,176 – up by 3.1% versus the $676,055 average price in August 2016. Prices are off dramatically from their high of $837,719 which was recorded in May. An increasingly better supplied market and a pause in demand have combined to create this deceleration in price growth. Despite the recent softness in prices, the overall price gain in 2017 remains highly significant.
On a year-to-date basis (January thru August), the average price increase for all property types in Burlington remains at a substantial 18.8%. On a forward-looking basis, the market still appears to be returning to a more balanced situation with supply returning to normal levels and with the forecast that the recent pause in buyer activity will come to an end as the market heads into the fall period.
Burlington Transactions - AUG 2017
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