Burlington Market Report – Double Digit Price Growth Continues
The Burlington resale home market recorded double digit price growth in May for the fourth consecutive month versus last year. On a year-to-date basis (January thru May), the average price of Burlington resale home now stands at $557,661 which is up by a frothy 12.9% versus the comparable average price in 2014. That means that the average Burlington homeowner has seen their home equity increase by about $64,000 thus far in 2015. To put this price growth into a more full perspective, the most recent inflation growth figure from Stats Canada (April 2015) stands at a paltry 0.8%. Prices are being bolstered by a combination of low inventory (active listings at the end of May were down by 4.5% versus last year) and a continuation of ultra-low borrowing costs.
From a volume standpoint, a total of 391 sales were recorded in May – up by just 0.8% versus the 388 homes sold in May 2014. However, on a year-to-date basis (January thru May), volume continues to be up by a solid 5.7% versus last year despite a very weak month of January (which was actually down by 16.1%). The lack of adequate inventory for sale has been the most noteworthy factor that has mitigated against volume growth this year. Despite the weak inventory situation, sales are still occurring at a reasonable pace due to exceptional borrowing costs and to the growing popularity of the Burlington market as a whole. From an affordability standpoint, the price increases experienced thus far in 2015 are being largely offset by the aforementioned ultra-low borrowing cost.