Sunday, October 7, 2018

3rd Quarter 2018

We are now in a Buyer's market. The number of homes available for sale compared to last year is up 43% to 636. 76 of those are condo apartment listings.  Many Seller's are having to reduce their asking prices to achieve a sale. In concert with that, it is taking longer to sell homes and apartments as well as to lease them.  Also many homes and condo's are experiencing light showing traffic and the rental market is also quiet.

We saw a spike in detached 2-storey home sales volume by 25% along with the average selling price increasing to $1,505,000 u p 8% over the third quarter of 2017 and 6% over August 2018.  Bungalows didn't fair as well with their average selling price dropping 20% to $912,000. Volumes stayed the same at 20 sales. This price drop is mainly due to builders focusing on smaller/cheaper lots in West Oakville as there are less of them available in Southeast Oakville.  Similarly, condo apartment average selling price dropped 13% to $550,000. Their volumes however almost doubled to 63 sales from 33 in 2017. That's quite a jump and is expected as more and more seniors downsize and look for alternative housing.

Financing is still attractive but heading in the wrong direction especially for first time buyers. Interest rates are expected to rise again this month.

Last year 266 homes and condo's sold for more than $1,000,000.  This year only 122 have changed hands. Surprisingly, we have seen a 23% increase in sales volume activity for the ultra luxury market sector, homes selling above $3,000,000.


Monday, September 3, 2018

August 2018

The detached 2-storey average was $1,423,000 up approximately 10% over this year's second quarter. The downside was sales volumes continue to be extremely low.  Most homeowners contemplating a move are sitting on the sidelines.

Surprisingly luxury homes fared pretty well during the month with 13 sales greater than $2,000,000  changing hands in a rather quick 45 days on the market.  That's impressive!  So good to know that buyers are out there.

We will learn more about the direction of the market when I compare the third quarter with last years numbers in early October.  Stay tuned.



Monday, July 2, 2018

2nd Quarter 2018

The softness continues.  Sales volumes were down from the first quarter as well as year over year.

The average price of a detached 2-storey home was $1,290,000, down 10% from the first quarter of 2018's $1,421,000 and down 17% from the second quarter of 2017 when the average sale price was $1,511,000.

Sales volumes were down over 80% for 2nd quarter year over year and down over 50% from the first quarter 2018.  Many would be seller's are sitting on the sidelines.

It took slightly more than a month to sell your home or condo so the time it takes to sell is creeping up.

There were 155 rental sales ranging from $1,100/mth for a Bronte basement apartment in a detached bungalow in Bronte to $8,500 for a Southeast Oakville executive home.  At the moment there are 83 rentals available ranging from $1,300 to $10,000/mth.

The market will remain soft til September which is normal.  Hopefully interest rates will not be increased as expected, and will have to see what the fall market unveils.  The good news is the fall market can be very good.

Sunday, April 1, 2018

1st Quarter 2018

Market sales volumes softness continues down over 40% year over year and 10% if you were to compare it to the first quarter of 2016 during more normal times.

Gone are the days of sizzling multipe Offers and homes and condo's take 20% longer to sell.

Thankfully, foerign buyer interest has returned somewhat, however, many Seller's are still having to reduced their asking prices in order to get sold.

The average price for a detached 2-storey home was $1421000 a drop of 6% year over year.

Many buyer's have enough product to choose from the 626 properties for sale.  2/3's of those cost a million dollars or more with the cheapest property, a condo apartment asking $320000.  Most areas/streets in Oakville would be consider to be in a buyer's market.  The most sought-after addresses can of course buck that trend.

The rental market was active with 155 transactions ranging from $1100/mth basement apt to an $8500/mth executive home.  There is reasonable choice still available with 115 for lease ranging from $1550 for a small condo apartment to $17900/mth for an estate property.


Wednesday, January 3, 2018

4th Quarter 2017

Market conditions for many Seller's were and continue to be difficult since the new Ontario government regulations announced last April. The number of showings as well as open house traffic in most instances has fallen off.  It was not unusual for no one to show up at an open house. The extremely cold December weather coupled with the holiday season, didn't help much either.

The average price for a detached 2-storey was up 3.5% to $1,476,462.  Detached bungalows went from $979,000 to $1268318 or up 29% while condo apartments fell 15% to an average of $492,289.  The bungalow increase reflected more higher end bungalow sales this year while the condo apartment drop reflected more lower end apartment sales compared to 2016.

No surprise it took longer to sell properties too.  The average was hovering 30 days compared to 20 a year earlier.

I expect 2018 to be a difficult year. Further tightening finance requirements, with expected interest rate increases and lower GDP growth prospects will definitely have an adverse effect on real estate sales.  The low inventory selection will keep the market more balanced for now, however, it will play into the Buyer's hand as more product comes to market, eventually turning the playing field into a Buyer's market. There are a lot of Baby Boomers sitting on the fence mulling over when to cash out/sell.