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.
Wednesday, January 3, 2018
Wednesday, October 4, 2017
3rd Quarter 2017
Gone are the days of multiple Offers. And here to stay for a good while is a balance/buyer's market.
Our inventory levels are healthy with 445 properties for sale. 72 of those are condo apartments. If you were interested in acquiring a detached home in Southeast Oakville the cheapest homes available at the moment are $1100000/$1250000/$1500000 for Ford/Old Oakville & Morrioson areas, respectively.
This quarter saw sales volumes and price movement year over year as follows;
Type 3rd Qtr 2017 3rd Qtr 2016 Percentage change
Vol / Price
D-2 storey 99/$1392K 143/$1323K -45% / +5%
D Bung's 20/$1106K 43/$933 -110% / +18%
C-apts 33/$562
Sales prices for condo apartments were essentially flat since Qtr 2 2017, and up slightly by a single percentage point. Average prices were down however for detached 2-storey homes and bungalows by 12.5% and 10% respectively. We will see what the fourth quarter brings.
On the rental side there are 151 properties available. Of those 29 are condo apartments.
Financing is a little more expensive year over year. Variable rates are up 20 basis points to 2.40% and 5 year mortgage money is available at approxinately 2.79% up from 2.35% last year.
Our inventory levels are healthy with 445 properties for sale. 72 of those are condo apartments. If you were interested in acquiring a detached home in Southeast Oakville the cheapest homes available at the moment are $1100000/$1250000/$1500000 for Ford/Old Oakville & Morrioson areas, respectively.
This quarter saw sales volumes and price movement year over year as follows;
Type 3rd Qtr 2017 3rd Qtr 2016 Percentage change
Vol / Price
D-2 storey 99/$1392K 143/$1323K -45% / +5%
D Bung's 20/$1106K 43/$933 -110% / +18%
C-apts 33/$562
Sales prices for condo apartments were essentially flat since Qtr 2 2017, and up slightly by a single percentage point. Average prices were down however for detached 2-storey homes and bungalows by 12.5% and 10% respectively. We will see what the fourth quarter brings.
On the rental side there are 151 properties available. Of those 29 are condo apartments.
Financing is a little more expensive year over year. Variable rates are up 20 basis points to 2.40% and 5 year mortgage money is available at approxinately 2.79% up from 2.35% last year.
Monday, July 3, 2017
2nd Quarter 2017
It's as if someone turned the tap off. Sales volumes continued on their downward trend. Off more than 75% compared to the second quarter 2016 when there were 1312 sales compared to 298. Of those there were 97 2-storey, 51 condo apartment and 33 bungalow sales.
The average days on market was 24. Still reasonable quick however, since May 1st (through June 30th) the sales volume numbers have really fallen off. The average selling prices for the above categories are also shown below;
Detached 2-storey 24 $1,566,309 (without including a $16mm sale)
Condo apt sales 22 $556,863
Detached bungalows 8 $1,213,212
Those average sale prices during the 2nd quarter of 2016 were $1,300,000/$745,000 & $1,090,000. The year over year percentage change were +20%/-37%/+11%, respectively. In the case of condo sales, there were more entry level condo's purchased compared to 2016 which has led to this average price decline.
Add the normal slowdown for summer vacations and your not in a good position if you have to sell. And showing and open house traffic is way down.
Some feel the market will pick up in September as the fall market is usually quite good. I believe it will take a little more time for the dust to settle from the recent rule changes, similar to Vancouver and we won't get back to normal volumes til Jan 2018.
Buyers sitting on the sidelines certainly have more choice and I believe we are approaching a Buyer's market! You can argue it's balanced right now.
Rental sales volumes were similar year over year, 233 versus 239. Perhaps we will see some buyer's enter the market sooner should interest rates increase.
The average days on market was 24. Still reasonable quick however, since May 1st (through June 30th) the sales volume numbers have really fallen off. The average selling prices for the above categories are also shown below;
Detached 2-storey 24 $1,566,309 (without including a $16mm sale)
Condo apt sales 22 $556,863
Detached bungalows 8 $1,213,212
Those average sale prices during the 2nd quarter of 2016 were $1,300,000/$745,000 & $1,090,000. The year over year percentage change were +20%/-37%/+11%, respectively. In the case of condo sales, there were more entry level condo's purchased compared to 2016 which has led to this average price decline.
Add the normal slowdown for summer vacations and your not in a good position if you have to sell. And showing and open house traffic is way down.
Some feel the market will pick up in September as the fall market is usually quite good. I believe it will take a little more time for the dust to settle from the recent rule changes, similar to Vancouver and we won't get back to normal volumes til Jan 2018.
Buyers sitting on the sidelines certainly have more choice and I believe we are approaching a Buyer's market! You can argue it's balanced right now.
Rental sales volumes were similar year over year, 233 versus 239. Perhaps we will see some buyer's enter the market sooner should interest rates increase.
Thursday, April 27, 2017
1st Qtr 2016 versus 1st Qtr 2017
WOW who would have thought prices would get to where they are. Crazy market, great for Seller's and horrible for Buyer's.
Sales volumes this year are very soft compared to 2016. Essentially down by more than half. The number of detached 2-storey, condo apartments and detached bungalows sales were as follows;
85, 48 and 29. This works out to 25%, 55% and 38% of their 2016 sales volumes. Add to that the price increases year over year for each of these categories and you can see the frustration for Buyer's.
Detached 2-storey homes average sale price for the first quarter of this year is $1,512,412 that's up 17.62% over 2016's $1,285,859.
Detached bungalows are averaging $998,450 up 9% (from $916,000) and condo apartments are averaging $497,333 up 16% (from $427,448).
There may be some relief for Buyer's with the recent taxes implemented by the Wynne governoment. It's a wait and see, but we are already experiencing reduced activity at open houses and showings, as well as fewer attempts to auction properties off. Let's call it "back to normal/traditional" marketing is now in the works.
Interest rates remain very attractive with no foreseeable rise in 2017. 5-year benchmark money can be borrowed at 2.54% while variable rates approximate 2.20%.
Feel free to make a comment at "kevinconroy@cogeco.ca" or call at 905-330-9197
kevin conroy
Royal LePage
Sales volumes this year are very soft compared to 2016. Essentially down by more than half. The number of detached 2-storey, condo apartments and detached bungalows sales were as follows;
85, 48 and 29. This works out to 25%, 55% and 38% of their 2016 sales volumes. Add to that the price increases year over year for each of these categories and you can see the frustration for Buyer's.
Detached 2-storey homes average sale price for the first quarter of this year is $1,512,412 that's up 17.62% over 2016's $1,285,859.
Detached bungalows are averaging $998,450 up 9% (from $916,000) and condo apartments are averaging $497,333 up 16% (from $427,448).
There may be some relief for Buyer's with the recent taxes implemented by the Wynne governoment. It's a wait and see, but we are already experiencing reduced activity at open houses and showings, as well as fewer attempts to auction properties off. Let's call it "back to normal/traditional" marketing is now in the works.
Interest rates remain very attractive with no foreseeable rise in 2017. 5-year benchmark money can be borrowed at 2.54% while variable rates approximate 2.20%.
Feel free to make a comment at "kevinconroy@cogeco.ca" or call at 905-330-9197
kevin conroy
Royal LePage
Sunday, January 1, 2017
4th Quarter 2016
We open the new year the same way we started last year, with a Seller's market.
Our president, Phil Soper, is forecasting an increase in the 10% range for 2017. Hard to believe prices will continue on that pace but we have seen an Oakville price increase of almost 8% since the 2016 3rd quarter results. The average sale price for a detached 2-storey home was $1323000 and has risen to $1426000 for Q4. Add to that the low inventory 96 sales in Q4 compared to 143 in Q3 and attractive financing for move up Buyer's, you can certainly believe it.
Homes general sold in less than 20 days, 2 days quicker than Q3.
The average sale price for a detached bungalow was $979000 while condo apartments sold on average for $563000.
Fasten your seat belts!
HAPPY NEW YEAR!
Our president, Phil Soper, is forecasting an increase in the 10% range for 2017. Hard to believe prices will continue on that pace but we have seen an Oakville price increase of almost 8% since the 2016 3rd quarter results. The average sale price for a detached 2-storey home was $1323000 and has risen to $1426000 for Q4. Add to that the low inventory 96 sales in Q4 compared to 143 in Q3 and attractive financing for move up Buyer's, you can certainly believe it.
Homes general sold in less than 20 days, 2 days quicker than Q3.
The average sale price for a detached bungalow was $979000 while condo apartments sold on average for $563000.
Fasten your seat belts!
HAPPY NEW YEAR!
Monday, October 3, 2016
The third quarter continued on it's torrid pace with 143 detached 2-storey homes selling in 22 days on average. Their average sale price is now $1,323,000! The average price of a detached 2-storey in September 2015, one year ago was $1148000 a 15% increase.
There were 43 bungalow sales at an average price of $933,000 many of which were bought for in fill and new construction.
We had 196 rental transactions during the quarter ranging in price from $1100/mth for a one bedroom apartment to $9200/mth for a Southeast new build.
Financing remains very attractive with 5 year money being loan as low as 2.35% while the variable rate is 2.20%.
I expect to see the market become more balance or even a buyer's market next year as many families comtemplating selling over the next few years decide to initiate their plans earlier to take advantage of these record prices.
There were 43 bungalow sales at an average price of $933,000 many of which were bought for in fill and new construction.
We had 196 rental transactions during the quarter ranging in price from $1100/mth for a one bedroom apartment to $9200/mth for a Southeast new build.
Financing remains very attractive with 5 year money being loan as low as 2.35% while the variable rate is 2.20%.
I expect to see the market become more balance or even a buyer's market next year as many families comtemplating selling over the next few years decide to initiate their plans earlier to take advantage of these record prices.
Tuesday, July 5, 2016
Oakville Sales April - June 2016
This second calendar quarter for 2016 had numerous multiple offer bids which led to record pricing across the housing sector and excellent results for Seller's. Not to mention quick sales.
The average price of a detached 2-storey home was $1,300,000. A detached bungalow came in about 20% cheaper at $1,090,000. Condo apartments averaged out at $745,000. It has certainly been a tough go for buyer's as they were competing against several bids in many instances.
Many of the transactions were from foreign buyer's, in particular, investors from China. And there doesn't seemed to be much let up in the forecast as interest remain at record lows and employment is steady.
The rental market was equally busy with 239 leases during the period. Detached homes rented on average for $3200/mth while townhomes and condo apartments rented for $2300 & $2000/mth on average, respectively.
The market should slow somewhat now that we are in prime time vacation mode.
The average price of a detached 2-storey home was $1,300,000. A detached bungalow came in about 20% cheaper at $1,090,000. Condo apartments averaged out at $745,000. It has certainly been a tough go for buyer's as they were competing against several bids in many instances.
Many of the transactions were from foreign buyer's, in particular, investors from China. And there doesn't seemed to be much let up in the forecast as interest remain at record lows and employment is steady.
The rental market was equally busy with 239 leases during the period. Detached homes rented on average for $3200/mth while townhomes and condo apartments rented for $2300 & $2000/mth on average, respectively.
The market should slow somewhat now that we are in prime time vacation mode.
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