Burlington Resale Prices Set New Record
The average selling price for a resale home in Burlington in May was $649,936 – up by an eye-popping 18.9% versus the $546,704 average price recorded in May 2015. This price set yet another new all-time high for the Burlington resale market, easily surpassing the previous high of $638,531 which was set just last month. On a year-to-date basis (January thru May), the average price of a Burlington resale home is up by 12.8% versus the comparable period in 2015 – representing an increase in home equity of approx. $71,000 for the average Burlington homeowner.
Price growth continues to be fueled by very low resale inventory. Active listings at May month-end were 307 units, down by a whopping 46.1% versus the 570 units for sale at month-end last year. Abnormally low inventory creates intense competition among buyers which creates upward pressure on prices. Prices are also being aided by ultralow interest rates and strong consumer confidence levels
While resale prices continued to climb, resale volume continued to lag in May. The Burlington resale home market recorded 363 sales in May – down by 7.2% versus the 391 homes sold in May 2015. On a year-to-date basis (January thru May), sales volume is down by a full 8.9% versus last year. The ultra-weak inventory situation is definitely impacting sales volumes as an increasing number of buyers are staying on the sidelines due to limited property selection.
While all other key factors (ultralow interest rates, a stable local economy and solid consumer confidence) remain very positive, a persistent shortage of listings will likely continue to negatively affect volumes going forward. Having said that, current market conditions highly favour potential sellers from both a price and length of time on the market viewpoint. On that latter note, days on market dipped to just 20 days in May while sellers received an average of 102% of their asking price (also a new all-time record).
Related: Monthly Neighbourhood Market Reports
Burlington Transactions - MAY 2016
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|