Record Prices, Slumping Volume
The average selling price for a resale home in Burlington in June was $682,258 – up by an eye-catching 18.3% versus the $576,683 average price recorded in June 2015. This price set yet another new all-time high for the Burlington resale market, easily surpassing the previous high of $649,936 which was set just last month. With 2016 now half completed, the average price of a Burlington resale home is up by a hefty 14.0% versus the comparable period in 2015.
This represents an increase in home equity of over $78,000 for the average Burlington homeowner over the past year. Price growth continues to be fuelled by very low resale inventory. Active listings at June month-end were 298 units, down by a whopping 35.8% versus the 464 units for sale at month-end last year. Abnormally low inventory fuels aggressive competition among buyers which, in turn, creates upward pressure on prices. Prices are also being aided by ultralow interest rates and strong consumer confidence levels.
While resale prices continued to climb, resale volume continued to lag in June. The Burlington resale home market recorded just 379 sales in June – down by a sizable 13.7% versus the 439 homes sold in June 2015. On a year-to-date basis (January thru June), sales volume is now down by a full 10.0% versus last year. The ultra-weak inventory situation alluded to above has definitely affected sales volumes as a growing number of buyers are staying on the sidelines due to sparse property selection.
While all other key factors (ultra-low interest rates, a stable local economy and solid consumer confidence) remain highly positive, a persistent shortage of listings will likely continue to negatively impact volumes in the near term. Having said that, current market conditions highly favour potential sellers from both a price and length of time on the market viewpoint. On that latter note, days on market dipped to just 18 days in June, which established a new record low for the market.
Related: Monthly Neighbourhood Market Reports
Burlington Transactions - JUNE 2016
|Neighbourhood||Total Transactions||Avg Sales Price ($)||Avg Days on Market|