Oakville Market Showing Signs of Moderation
The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in April was $1,268,198 – up by a whopping 22.2% versus the $1,038,056 average price of April 2016. While still displaying outstanding growth, this price marks the second consecutive month where prices have actually declined versus the all-time record of $1,428,664 which was set in February.
The fact that the sensational price increases versus year ago have started to wane somewhat is likely a function of the pause in demand noted above and strong indications of strengthening inventory. Savvy sellers may want to take advantage of prevalent market conditions before these new impacts take full effect in the months ahead. April days on market of 11 (down by 8 days from last year’s 19 days) reveals that the market is still buoyant among buyers whose psychology has not yet changed.
The Oakville resale home market recorded 325 sales in April – down by 22.8% versus the 421 homes sold in April 2016. This brought year-to-date (January thru April) sales to 1,080 units – down by 2.4% versus the comparable period last year. The downturn in sales during April may be due to a shift in buyer psychology prompted by the Ontario Government’s Fair Housing Plan which was unveiled mid-April.
Some buyers may now be taking a “wait and see” attitude based on the notion that the government’s plans may cause prices to subside in the months ahead. While many pundits do not believe that the measures contained in the government’s Fair Housing Plan will have enough teeth to materially affect demand in the long run, there is no question that the announcement can affect buyer psychology in the short run. Other potential buyers may be waiting for prices to come down with a rising tide of new inventory coming onto the market.
Oakville Transactions - APR 2017
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|
|West Oak Trails||25||$1,046,515||8|