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.

Related: Balanced Market Returning to Burlington

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

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

Oakville Transactions - AUG 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Bronte Creek2$1,294,00017
Bronte12$1,132,79245
Central2$3,007,00059
College Park4$882,50022
Clearview4$1,125,25013
Falgarwood7$630,00018
Ford10$1,664,11926
Glen Abbey19$1,101,90526
Glenorchy4$942,00037
Joshua Creek6$1,674,16733
Morrison4$2,592,50045
Old Oakville4$1,609,25039
River Oaks25$966,68433
Southwest10$1,592,50048
Wedgewood Creek6$969,83351
Westmount16$819,80039
West15$988,53336
West Oak Trails17$946,15234

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.

Related: Balanced Market Returning to Oakville

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.

Related: Monthly Neighbourhood Market Reports

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

Burlington Transactions - AUG 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Aldershot South12$692,82542
Alton Central2$947,50028
Alton West4$909,50026
Brant Hills17$589,32427
Central10$860,75034
Dynes6$543,25028
Elizabeth Gardens10$686,40025
Headon Forest15$651,96729
Longmoor5$566,38023
Maple8$603,37522
Millcroft8$822,68831
Mountainside10$605,65033
Orchard11$803,84432
Palmer5$706,00032
Pinedale10$701,55023
Roseland4$1,559,00057
Shoreacres7$1,273,42953
Tansley5$790,10028

Converting Real Estate Market Stats to Intel – Who should you listen to?

In today’s information rich world where everyone has access to everything and information (whether fact or fiction) travels quicker than ever before. While this has its advantages, it has also diluted the quality and validity of the information being shared. Most recently we are seeing this happen more and more when it comes to the many voices speaking about the Real Estate Market. It’s important to separate fact from fear. I am a strong believer of constant and continuous learning. In order to remain competitive and leading edge, it’s an absolute necessity we surround ourselves with the best in the industry and leverage our strengths in order to bring intelligence and sage advice to our clients.

As a company we are constantly contributing to the knowledge and expertise of our team by providing ongoing training and partnerships that allow us to do more for our clients.

A few weeks ago I met with Marcus Tzaferis, the CEO of MorCan Direct, and got to know his vision for his company that has been rated #1 in Canada two years in a row. MorCan is a Mortgage Brokerage which means they have access to various lenders and will always find the best product for their clients. What intrigued me most about MorCan’s business model is that their Mortgage Agents work on a salary and are not commission based. This is very important and means they are not selecting products based on the highest commission. Instead they take the time to understand the clients overall goals and needs and choose the product best suited to them.

Much like myself, Marcus is an industry expert and is often called upon by the media for his informed opinion on what to expect when it comes to all things related to Canada’s financial climate, interest rates and their impacts on the Real Estate Market. It’s critical we have the right people by our side to guide our thinking and help us navigate the changes we are seeing.

Working with industry leaders like MorCan Direct allows us to continue to provide a high level customer experience and expertise beyond what you read in the newspaper. We are excited to have MorCan on board! Visit their website to see how they can help you.

MorCan Direct
Click here to see how MorCan Direct can help you.

What’s happening with the Real Estate Market?

Do you have questions about the Real Estate Market and want to get the inside scoop from some of the top realtors in the industry? Watch this video to see what they are saying.

In an effort to be at the leading edge of this industry and continuously innovate I joined the most influential real estate mastermind group in the GTA in 2011.

Together, we share industry and market information with the focus on improving service to our clients, develop new tools and business practices and champion innovation and awareness in the field.

With over 27 years in real estate, my colleagues and I have experienced many market shifts and this current shift is not too different from what we’ve seen historically.

We recently got together to discuss the current market shift and to brainstorm about what home sellers and buyers can expect for the remainder of 2017.

Oakville Market Continues to Adjust

The Oakville resale home market recorded 138 sales in July – down by 50.0% versus the 276 homes sold in July 2016. This brought year-to-date (January thru July) sales to 1,695 units – down by 23.3% versus the comparable period last year. A recent release from the Ontario government found that foreign buyers represent a small proportion of buying activity in the Golden Horseshoe.

Clearly, the year-over-year decline experienced in July had more to do with psychology, with an abundance of would-be home buyers on the sidelines waiting to see how market conditions evolve. In addition, summer market statistics are generally not the best indicators of housing market conditions due to its low seasonal importance. The approaching fall market will provide a better indicator of the true impacts of the Ontario Fair Housing Plan and rising borrowing costs.

Related: Burlington Market Continues to Adjust

The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in June was $1,114,913 – up by 6.7% versus the $1,044,974 average price of July 2016. That said, prices are o•ff substantially from their high of $1,428,664 which was recorded in February. Despite this recent pullback in prices, the overall price gain in 2017 remains very substantial.

On a year-to-date basis (January thru July), the average price increase for all property types in Oakville remains at a whopping 23.3%. That translates into a home equity gain of over $240,000 for the average Oakville homeowner. Looking forward, the market appears to be headed back to a more balanced situation with supply returning to normal levels and with the expectation that the recent pause in buying activity will be relatively short-lived.

Related: Monthly Neighbourhood Market Reports

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

Oakville Transactions - JULY 2017

NeighbourhoodTotal TransactionsAvg Sales Price ($)Avg Days on Market
Bronte Creek2$1,057,50041
Bronte13$1,025,30831
Central3$986,66744
College Park8$700,55021
Clearview5$1,243,90028
Falgarwood6$774,60015
Ford6$1,449,16747
Glen Abbey11$983,04519
Glenorchy5$1,197,00034
Joshua Creek8$1,461,81319
Morrison10$2,501,85059
Old Oakville3$2,004,66723
River Oaks17$802,23235
Southwest4$1,483,62527
Wedgewood Creek---
Westmount15$898,85320
West12$1,004,83331
West Oak Trails13$814,62326