Weak Supply, Strong Price Growth Continue in Burlington
The average selling price for a resale home in Burlington in September was $709,986 – up by a whopping 24.2% versus the $571,439 average price recorded in September 2015. This established a new all-time high resale price for the Burlington market, easily surpassing the previous record of $682,258 which was set this past June. On a year-to-date basis (January thru September), the average price of a Burlington resale home is now up by an eye-opening 16.6% versus the comparable period last year. This represents an increase in home equity of over $93,000 for the average Burlington homeowner over the past twelve months.
Price growth continues to be spurred by astonishingly low resale inventory. Active listings at September month-end were 296 units, down by a staggering 40.1% versus the 494 units for sale at month-end last year. Abnormally low inventory fuels aggressive competition among buyers which, in turn, causes upward pressure on prices.
While resale prices continued to rise, resale volume maintained its year long pattern of softness in September. The Burlington resale home market recorded just 236 sales in September – down by 6.3% versus the 252 homes sold in September 2015. On a year-to-date basis (January thru September), sales volume is now down by a full 10.2% versus last year. The ultra-weak inventory situation alluded to above has definitely impacted sales volumes as an increasing number of buyers are remaining out of the market due to poor property selection.
While all other key factors (ultra-low interest rates, a stable labour market and solid consumer confidence) remain highly favourable, an ongoing shortage of listings will continue to negatively affect sales volumes in the short term. That said, current market conditions also favour sellers from length of time on the market standpoint. Days on market declined to just 22 days in September, a full 9 days lower (-29.0%) than September 2015 figure of 31 days.
Related: Monthly Neighbourhood Market Reports
Burlington Transactions - SEPT 2016
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|