Sensational Oakville Price Increases Continue

The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in March was $1,394,389 – up by an eye-popping 35.9% versus the $1,025,703 average price of March 2016. Although slightly less than the all-time record of $1,428,664 which was set just last month, Oakville resale prices are still displaying unprecedented levels of growth. With the first quarter of 2017 now complete, the average year-to-date price of a resale Oakville home is up by approx. $345,000 versus the comparable period last year ($1,343,374 versus $998,059, or +35.9%).

What’s perhaps even more noteworthy is that the percentage of fully detached Oakville homes selling over the $1 million mark in March was a whopping 94.1%. Adding to this ideal seller’s market climate is another all-time record low days on market. In March, the average Oakville resale home took just 15 days to sell, as compared to 22 days in March 2016 (which is equivalent to a 31.8% reduction).

Related: Burlington Market Continues To Set Records

The Oakville resale market recorded 359 sales in March, up by a sizeable 18.9% versus the 302 units sold in March 2016. After two relatively weak months in terms of sales, March sales signaled a turnaround in volume likely due to the beginning of strengthening inventory levels. With the first quarter of 2017 now over, year-to-date sales are showing a 9.0% growth versus the comparable period last year (748 units versus 686 units).

It is likely that the allure of these sensational price increases will finally entice a growing number of sellers onto the market, which will be highly positive for volume going forward. That said, more inventory will likely also begin to finally curtail the mind-boggling price increases noted above, although prices will still remain much advanced versus last year. Savvy sellers may want to get the jump on their competition by listing earlier rather than later in order to maximize their investment, given the current environment.

Related: Monthly Neighbourhood Market Reports

What’s Your Oakville Home Worth? Get a Free market evaluation of your home.

Oakville Transactions - MAR 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Bronte Creek10$1,380,05011
Bronte29$1,226,82811
Central16$1,429,96315
College Park14$1,028,3578
Clearview6$1,342,5007
Falgarwood11$1,129,4557
Ford26$1,890,37123
Glen Abbey28$1,412,6546
Glenorchy14$1,178,3478
Joshua Creek20$1,602,4798
Morrison19$2,817,28913
Old Oakville19$2,108,88359
River Oaks39$1,072,2897
Southwest14$2,007,85716
Wedgewood Creek14$1,169,9069
Westmount21$1,127,7548
West33$1,435,05512
West Oak Trails21$1,026,59510

Burlington Market Continues To Set Records

The Burlington resale home market recorded 350 sales in March – up by a hefty 16.7% versus the 300 homes sold in March 2016. With the first quarter of 2017 now over, year-to-date sales are showing a truly impressive 17.6% growth versus the comparable period last year (727 units versus 618 units). The market continues to benefit from favourable financing, a stable economy and an ever-growing “Burlington cachet”. In addition, there is a growing population influx from the more expensive GTA market.

Sales volume would have been even greater were it not for ongoing chronically low inventory levels. There were only 206 properties available for sale at month-end, down by 37.2% versus last year. Despite the low overall inventory figure, the number of new listings coming onto the market was actually up by a substantial 14.4% in March. However, it will likely take several months of new listings growth exceeding sales growth before the overall inventory situation will materially change.

Related: Sensational Oakville Price Increases Continue

The average selling price for a resale home in Burlington in March was $814,187 – up by a jaw-dropping 32.1% versus the $616,150 average price recorded in March 2016 and setting another new all-time record. This represents the fifth month in a row in which there was an annual increase in home equity of well over $100,000 for the average Burlington homeowner, with this month’s increase almost $200,000.

A “perfect storm” of strong demand and limited supply is combining to create exceptionally high prices. That said, the growth in new listings noted above will likely continue as a growing number of sellers seek to “cash in” on the favourable seller’s market. This will eventually strengthen total inventory and will curtail the rampant upward movement in prices, although the exact timing of this is still anyone’s guess at the moment. Savvy sellers may want to get the jump on their competition by listing earlier rather than later in order to maximize their investment, given this current environment.

Related: Monthly Neighbourhood Market Reports

WHAT’S YOUR BUrlington HOME WORTH? GET A FREE MARKET EVALUATION OF YOUR HOME.

Burlington Transactions - MAR 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Aldershot South31$1,135,43621
Alton Central2$820,00015
Alton West12$1,004,6758
Brant Hills17$657,7129
Central20$1,002,11521
Dynes12$684,9178
Elizabeth Gardens12$873,8428
Headon Forest22$742,8259
Longmoor16$745,3879
Maple9$783,94413
Millcroft28$851,7987
Mountainside14$591,5008
Orchard16$942,3767
Palmer8$659,3756
Pinedale9$694,3008
Roseland6$1,806,31539
Shoreacres13$1,270,3457
Tansley7$723,5398

Why Now Is The Time To Get In The Real Estate Game

Five Strategies for the skeptical Investor

Buying and selling in this fast moving and aggressive market can sometimes scare people away due to a fear that the market is out of their reach. In the 25 plus years we have been in the industry, we have experienced markets like the one we are currently in. We understand that real estate is the most significant investment you will make in your life.

We have compiled our top five tips that will provide context and understanding about the current market which will answer your questions:

#1 – Borrow Money to Invest

Affordability to borrow is a hot topic right now. Interest rates to borrow are at all time low making money cheap to borrow. This really is a good time to get a mortgage and lock into a manageable monthly payment. Keep this in mind as you look at higher housing costs as lower borrowing costs help to balance this out.

#2 – Invest in a Long-Term Purchase

If you are deciding to buy a home, look at your purchase as a long term Investment. With this mindset and plan, you can afford a slight decrease in the market when it happens. As we have seen in the past, everything is cyclical, as the stock market illustrates to us regularly. It’s inevitable, the value of your home will have small dips and rises but don’t let that stop you from buying.

#3 – Housing Market Correction

When the United States Housing crisis occurred we in Canada had fears that our market would fall into crisis as well. What we actually saw happen was that our market did not crash but plateaued for a few years. What we see happening in the past 3 years is an increase to make up for that plateau that previously occurred.

#4 – GTA Growth Rate

The GTA has a growth ranges between 35% – 43%. This is a huge factor of why the market is not slowing down. As a result of this growth, there is a huge demand for real estate in the GTA. That demand needs to be filled and we are seeing that and homes are selling within record times of a day or two on MLS. We can also see the GTA’s response to this huge growth rate in the dozens of Condo developments that have been filling our shorelines the last 5 years.

#5 – The Current GTA Market

The GTA housing costs are definitely rising but they still have room to grow. When we look at other urban cities like London and New York our housing prices here in the GTA don’t compare. New York and London are extremely high in comparison to the GTA and it look like Toronto is just catching up. According to analysts, our market in the GTA can still sustain higher price points.

What does this mean for you?

Here are the stats. According to the Government of Ontario, GTA is projected to be the fastest growing region of Ontario, with its population increasing by over 2.8 million to reach almost 9.5 million by 2041. This means that the demand for housing will continue to rise and therefore the price of real estate is expected to hold and grow.

With that said, don’t let the fear of the unknown stop you from investing in real estate. The market is hot right now, but do yourself a favour and make an informed decision and work with a realtor that has experience in the housing market. Trust the team that has been around and has lived through the past 25 years of ups and downs. Let us lead you through the process of buying or selling your home. Contact us today and we will help you make an informed decision.

 


 

*The material in this article is presented as general information only. It is not intended as legal, financial or real estate advice and must not be relied on as such. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.

Oakville Resale Prices Gravity Defying

The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in February was $1,428,664 – up by a spectacular 43.5% versus the $995,357 average price of February 2016. The median price in February was $1,250,000 – up by an equally eye-catching 41.9% versus the February 2016 median price of $880,750. The proportion of fully detached homes selling over the $1 million mark was 87.4% – or almost 9 out of every 10 detached homes sold in the Oakville resale market.

Adding to this ideal seller’s market climate is an all-time record low days on market. In February, the average Oakville resale home took just 16 days to sell, as compared to 25 days in February 2016 and 22 days in February 2015. Chronically low inventory levels coupled with continued favourable financing and strong consumer confidence levels are combining to create this stratospheric rise in resale prices. In addition, the ever-growing cachet of the Oakville market is also helping to support prices.

Related: Burlington Market Continues to Shine

The Oakville resale market recorded 242 sales in February, down by 6.2% versus the 258 units sold in February 2016. Volume growth continues to be hampered by abnormally low inventory levels – a phenomenon which has been prevalent throughout the Golden Horseshoe area for several months. The allure of sensational price increases should eventually entice more sellers onto the market. That said, sellers also need a place to move to in order to feel comfortable with moving forward, and this is proving to be difficult in the current environment. As a result, the market seems to be stuck in neutral at the moment.

Added to this is the fact that first-time buyers have been literally priced out of the market in recent months, given new mortgage qualification rules introduced late last year and the incredible jump in prices. The active participation of first-time buyers is vital to any market since it provides an impetus for a wide segment of existing homeowners to trade up to the next level.

Related: Monthly Neighbourhood Market Reports

What’s Your Oakville Home Worth? Get a Free market evaluation of your home.

Oakville Transactions - FEB 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Bronte Creek10$1,129,35015
Bronte22$1,152,33618
Central16$1,126,62515
College Park11$868,46413
Clearview5$1,201,9404
Falgarwood9$743,29017
Ford15$1,731,25316
Glen Abbey14$1,262,6998
Glenorchy8$1,371,2508
Joshua Creek15$1,595,7677
Morrison16$3,232,56357
Old Oakville5$4,018,00027
River Oaks29$1,033,8906
South-West10$2,074,80027
Wedgewood Creek8$1,422,3755
Westmount10$1,017,2005
West27$1,427,74411
West Oak Trails10$1,278,3804

Burlington Market Continues to Shine

The Burlington resale home market recorded 236 sales in February – up sharply by 22.3% versus the 193 homes sold in February 2016. The last five-year average for February volume is 212 units, so February 2017 was definitely an “above average” month with regard to volume. The market continues to benefit from low interest rates, rapidly increasing migration from the more expensive GTA market, a stable local economy and an ever-increasing cachet. Sales volume would have been greater still were it not for ongoing seriously low inventory levels.

There were only 165 properties available for sale at month-end, down by 42.5% versus last year and by a spectacular 52.9% versus the latest 5-year average. The allure of record-high prices should eventually entice more sellers onto the market, however, sellers need to be satisfied that they will be able to buy a suitable home prior to listing. As a result, there are portions of the market that are stuck in neutral at the moment.

Related: Oakville Resale Prices Gravity Defying

The average selling price for a resale home in Burlington in February was $756,342 – up by a jaw-dropping 28.0% versus the $590,867 average price recorded in February 2016 and setting a new all-time record. This represents the fourth month in a row in which there was an annual increase in home equity of over $100,000 for the average Burlington homeowner. A “perfect storm” of strong demand and limited supply is combining to create exceptionally high prices.

Given the current climate, this is truly an excellent time for prospective sellers to list both in terms of price realization and also in terms of the speed of the transaction. On that latter point, average days on market in February was just 18 days as compared to 28 days in February 2016, 37 days in February 2015 and 31 days in February 2014. Of course, as mentioned above, sellers also need to be satisfied that they will be able to find a suitable property that meets their needs as buyers as well.

Related: Monthly Neighbourhood Market Reports

WHAT’S YOUR BUrlington HOME WORTH? GET A FREE MARKET EVALUATION OF YOUR HOME.

Burlington Transactions - FEB 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Aldershot South15$927,84722
Alton Central1$1,013,00011
Alton West3$825,0008
Brant Hills11$718,0007
Central7$903,22925
Dynes12$767,8338
Elizabeth Gardens9$802,7225
Headon Forest12$819,0426
Longmoor6$694,3008
Maple10$751,40040
Millcroft19$1,004,79010
Mountainside7$600,92913
Orchard8$1,002,2509
Palmer8$704,4257
Pinedale10$681,0907
Roseland9$1,178,33317
Shoreacres8$1,362,81337
Tansley5$700,68027