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Aug
06,
2015

Oakville Market Healthy Despite Low Inventory

The Oakville resale market recorded 338 sales through the Oakville-Milton MLS® system in June, up by a healthy 6.6% versus the 317 units sold in June 2014. Having said this, volume continues to be held back by low inventory which is affecting the ability of many potential purchasers to find acceptable properties. As a result, a sizeable number of would-be purchasers have remained on the sidelines thus far in 2015. On a year-to-date basis (January thru June), volume is up by a modest 1.1% versus last year (1,685 units sold in 2015 as against 1,666 units sold in 2014). Unless the inventory situation improves dramatically in the back half of 2015, volume growth is expected to remain in the tepid, single digit territory. Despite moderate sales velocity, days on market in June held steady at 24 – identical to June 2014.

The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in June was $826,111 – up by 2.3% versus the $807,282 average price posted in June 2014. However, on a year-to-date basis (January thru June), the average price of an Oakville resale home was $838,097 versus $811,867 for the same period last year – representing a slightly more substantial increase of 3.2%. The average Oakville homeowner has therefore enjoyed an increase in home equity of about $26,000 thus far in 2015. With a continuation of tight inventory and ultra-low borrowing costs, price growth will almost certainly increase in the near term. At the moment, buyers can take advantage of 5-year fixed mortgage rates of as low as 2.48% and 5-year variable rate mortgages for as low as 1.99%.