Burlington Prices at All-Time High, Volume Slumps
The average selling price for a resale home in Burlington in May was $837,719 – up by a jaw-dropping 28.9% versus the $649,936 average price recorded in May 2016. This set a new all-time high for the market, handily eclipsing the previous record of $814,187 which was set in March. On a year to date basis (January thru May), prices are now up to the tune of 26.6% versus last year. This represents the seventh month in a row in which there was an annual increase in home prices over $100,000 for the average Burlington homeowner, with an average increase of $156,000 over this time frame.
Price growth is clearly showing no signs of easing off despite some recent buyer hesitation and despite a huge influx of new listings onto the market in recent months. Burlington home sellers are still also getting prices well above asking (104% of asking in May) although average days on market is beginning to normalize (19 days in May versus 20 days in May 2016).
The Burlington resale home market recorded 325 sales in May – down by 10.5% versus the 363 homes sold in May 2016. This is the second consecutive month of volume weakness and is largely attributable to a dramatic shift in buyer psychology caused by the perceived future impact of the Ontario Government’s Fair Housing Plan (which was announced in April) and to the perceived impact of an improved supply situation.
On the supply side, total homes available for sale at month-end were 442 – up by a whopping 44.0% versus May 2016. Of interest, this marked the first-time in the past 25 consecutive months that inventory has actually increased on a year-over-year basis. These two factors have combined to convince many would be buyers to postpone their home buying intentions temporarily in the hope of seeing prices decline from their current lofty levels. That said, prices are not going down so this buying pause is likely to be short-lived.
Related: Monthly Neighbourhood Market Reports
Burlington Transactions - MAY 2017
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|