Oakville Volume Slumps, Prices Remain Buoyant
The Oakville resale home market recorded 243 sales in May – down by a sizeable 43.6% versus the 431 homes sold in May 2016. This brought year-to-date (January thru May) sales to 1,340 units – down by 12.9% versus the comparable period last year. This is the second consecutive month of extreme 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 a large influx of new listings onto the market.
These 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, the pause will likely be short-lived as buyers will come to realize that the government’s plan is not likely to materially affect prices.
The average price of an Oakville resale home sold through the Oakville-Milton MLS® system in May was $1,270,295 – up by a whopping 20.8% versus the $1,051,630 average price of May 2016. On a year-to-date basis (January thru May), prices are up even further to the tune of 28.4% ($1,314,733 versus $1,023,993 last year). Although down from the peak level of $1,428,664 in February, prices have stabilized in May as compared to April suggesting that a current “bottom” may have been found.
This augurs well for potential sellers especially when put into context of the weak demand of the past few months. It is now likely that more buyers will come back to the table in the months ahead given the lack of indication of prices falling any further. Improved short term demand may even cause prices to return to the stratospheric levels experienced in February.
Oakville Transactions - MAY 2017
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|
|West Oak Trails||16||$954,594||16|