Burlington Market Showing Signs of Change
The Burlington resale home market recorded 335 sales in April – down by 9.2% versus the 369 homes sold in April 2016. That said, year-to-date (January thru April) sales remain in positive growth territory to the tune of 7.6% (1,062 units in 2017 versus 987 units in 2016). The pause in sales during April may be due to a shift in buyer psychology prompted by the Ontario Government’s Fair Housing Plan which was unveiled mid-April.
Some buyers may now be taking a “wait and see” attitude based on the notion that the government’s plans may cause prices to subside in the months ahead. Others may be waiting for the impact of rising inventory – which has finally started to occur – to have on housing prices. Speaking of inventory, 462 new listings came onto the market in April (+15.8% versus last year) and total active listings at month-end were 278 (down by 9.2% versus last year). That said, this was the smallest drop in total inventory in the last 18 months.
The average selling price for a resale home in Burlington in April was $782,897 – up by a whopping 22.6% versus the $638,531 average price recorded in April 2016. Despite the major increase, the average price declined versus the all-time record of $814,187 which was set in March. This represents the sixth 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 the average increase actually topping $150,000.
That said, this string of major price increases versus a year ago may start to wane in the months ahead given the pause in demand noted above and strong indications of strengthening inventory. Savvy sellers may want to take advantage of prevalent market conditions before these new impacts take full effect. April days on market of 13 (down by 6 days from last year’s 19 days) reveals that the market is still buoyant among buyers whose psychology has not yet changed.
Related: Monthly Neighbourhood Market Reports
Burlington Transactions - APR 2017
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|