Balanced Market Returning to Oakville
The Oakville resale home market recorded 150 sales in August – down by 38.3% versus the record-setting 243 homes sold in August 2016. This brought year-to-date (January thru August) sales to 1,859 units, down by 24.2% versus last year. The softness in sales has been accompanied by some recent strength in inventory growth, although absolute levels of inventory still lag historical norms. 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 Oakville in August was $1,147,983 – up by 5.9% versus the $1,084,250 average price in August 2016. That said, prices are off dramatically from their high of $1,428,664 which was recorded in February. An increasingly better supplied market and a pause in demand have combined to create this deceleration in price growth. Despite the recent softness in prices, the overall price gain in 2017 remains highly significant.
On a year-to-date basis (January thru August), the average price increase for all property types in Oakville remains at a substantial 21.7%. On a forward-looking basis, the market still appears to be returning to a more balanced situation with supply returning to more normal levels and with the forecast that the recent pause in buyer activity will come to an end as the market heads into the fall period.
Related: Monthly Neighbourhood Market Reports
Oakville Transactions - AUG 2017
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|
|West Oak Trails||17||$946,152||34|