Burlington Continues Strong Prices, Weak Volume
The average selling price for a resale home in Burlington in July was $678,402 – up by an eye-popping 23.5% versus the $549,274 average price recorded in July 2015. While slightly below the all-time high of $682,258 set in June, prices remain vastly ahead of year ago levels. On a year-to-date basis (January thru July), the average price of a Burlington resale home is now up by a whopping 15.2% versus the comparable period in 2015. This represents an increase in home equity of over $85,000 for the average Burlington homeowner over the past year.
Price growth continues to be supported by exceptionally low resale inventory. Active listings at July month-end were 266 units, down by a whopping 41.2% versus the 452 units for sale at month-end last year. Abnormally low inventory fuels aggressive competition among buyers which, in turn, creates upward pressure on prices. Price growth is also being fueled by highly favourable interest rates and strong consumer confidence levels.
While resale prices continued to surge, resale volume continued its pattern of weakness in July. The Burlington resale home market recorded just 269 sales in July – down by a hefty 15.1% versus the 317 homes sold in July 2015. On a year-to-date basis (January thru July), sales volume is now down by 10.7% versus last year. The ultra-weak inventory situation mentioned above has definitely impacted sales volumes as an increasing number of buyers are staying out of the market due to inadequate property selection.
While all other key factors (ultra-low interest rates, a stable labour market and solid consumer confidence) remain highly positive, an ongoing shortage of listings will likely continue to negatively affect volumes in the near term. Having said that, current market conditions highly favour potential sellers from both a price and length of time on the market viewpoint. On that latter note, days on market dipped to just 20 days in July, a full 6 days lower than July 2015.
Burlington Transactions - JULY 2016
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|