Skyrocketing Burlington Prices Major Story in 2016
The average selling price for a resale home in December was $707,652 – up by a spectacular 28.4% versus the $551,230 average price recorded in December 2015. Looking at 2016 as a whole, the average selling price grew by a whopping 17.0% to $657,357. For some perspective, this level of price growth represents an increase in home equity of approx. $95,000 for the average Burlington homeowner over the past 12 months. Among the many factors which fueled this rapid rise in resale prices, the most significant has been a sharp decline in inventory available for sale.
The number of active listings throughout 2016 averaged an eye-catching 38.0% lower than in 2015. This was actually the third consecutive year of lower supply in the market, but was by far the largest annual dip ever recorded. In 2015, inventory averaged 11.7% lower than 2014, and in 2014 inventory averaged 9.9% lower than 2013. Among the other factors that fueled price growth throughout 2016 were low borrowing costs and a strong local economy.
Related: 2016 Banner Year for Oakville Market
The Burlington resale home market recorded 106 sales in December – down by an eye-popping 28.4% versus the 148 homes sold in December 2015. For 2016 as a whole, resale volume was down by a hefty 9.3% versus 2015. The ongoing inventory shortage throughout 2016 caused sales to suffer all year long. In fact, monthly sales were down every month of the year versus 2015, with the sole exception of November.
Ongoing low supply resulted in many delayed, and even forfeited, purchases as many would-be buyers were simply unable to find a suitable property that met their needs regardless of the price. That said, there is likely a substantial amount of pent-up demand in the market as we enter 2017, a fact which may augur well for volume in the months ahead. Finally, days on market, which is another indication of the balance between supply and demand, declined significantly in 2016 to an average of 22.7 days from 30.5 days in 2015 (a decline of 25.6%).
Burlington Transactions - DEC 2016
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