Tuesday, July 21, 2015 9:00 am ·  0 Comments
We are half way through the 2015 real estate year and well into the 3rd quarter. Oakville’s June sales figures are in line with the rest of 2015, yielding a high rate of sale, pushing sales figures 3% over last years average sale price. The high demand in Oakville during mid-summer continues to drive prices up as the need for available inventory far exceeds active listings. Year over year, 2015 has achieved a 14% increase of overall units sold for the month of June.
“It is encouraging to see that new listings have edged upward so far this year, as homeowners have reacted to strong home price growth and have looked to take advantage of increased equity in their homes. However, the annual rate of sales growth continues to far outstrip listings growth, which means that there remains a lot of willing buyers in the marketplace who haven’t found a home that meets their needs. As long as this situation persists, expect home prices to trend strongly upward,” – Jason Mercer, TREB’s Director of Market Analysis
While Oakville’s housing market continues to grow, the Canadian Economy has weakened due to year-over-year price declines for consumer energy products and faltering global growth mostly in China and the United States. The Bank of Canada has stated that recent indicators suggest a rebound in in the U.S economy, but not in the Chinese marketplace. China is currently experiencing a re balancing of their growth to more sustainable levels, thus effecting certain commodities which hold tremendous value in the Canadian economy.
“Financial conditions in major economies remain very accommodative and continue to provide much-needed support to economic activity. Global growth is expected to strengthen over the second half of 2015, averaging about 3 per cent for the year, and accelerate to around 3 1/2 per cent in 2016 and 2017.”- The Bank of Canada
In light of these recent global developments, The Bank of Canada has lowered its overnight rate to 1/2 per cent which will mean more purchasing power for Canadians and easier access to financing for home purchases. This is a great time for young, first time home buyers to consult a Mortgage Broker, Banker or Realtor to better understand how these developments effect them; and if now is the right time to buy a home or investment property.
“The lower outlook for Canadian growth has increased the downside risks to inflation. While vulnerabilities associated with household imbalances remain elevated and could edge higher, Canada’s economy is undergoing a significant and complex adjustment,” according to the Central Bank. “Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainability to target.”
With constantly changing local and global markets, home buying and selling at the right time can yield great rewards or cause a detrimental loss to investments. When contemplating the sale of one of the most valuable assets in a lifetime; it is always important to consult a professional Realtor to fully understand the marketplace to be able to grow fruitful investments in real estate.