Friday, May 15, 2015 10:00 am ·  0 Comments
Spring is in full bloom, the sun is out and the heat is turned up in more than one way. Oakville’s red hot real estate market has never been better, selling large volume at record prices with minimal days on market. GTA sales are up from last year by a sizeable 17%. According to the Toronto Real Estate Board, prices year over year have increased by 10%.
Demand is rising and the finite supply of homes in Oakville and the surrounding GTA means that it is still a seller’s market. New listings for the month of April have increased by a 5% margin from March, but are down more than 10% from last year’s figures. With limited inventory on the market for sale and a continual growing demand, homes are expected to continue to sell for record prices, at least for the remainder of the upcoming summer.
The average price of homes sold in Oakville for the month of April rose 6% month over month and the median price was up 3.4%. High end homes lead the way in April with 34.43% of total units sold being in the $1,000,000 + range while $800,000-$1,000,000 were a close second with 30.19% of total units sold.
Town home sales have continued to stay strong with 36.36% of town-homes being sold were in the $600,000-$800,000 price range. The Condo market in Oakville has shifted from last month. In March the $400,00-$600,000 condos lead the way with 38.10% leading market segment while in April the majority of condos sold were in the $300,000-$400,000 range. First time buyers are selling their condos and upsizing to town-homes and detached homes, requiring more space as they are getting married and starting families.
It has been 7 years since the United States housing crisis and many Canadians are asking if the bubble is going to burst. With $250,000 new Canadians every year and over 100,000 of them settling in Toronto and the GTA, demand has never been higher. With the prime rate sitting at 2.85%, it is still relatively easy to borrow.
A looming liquidity shortage may be on the horizon as mortgaged backed securities hold low yields, due to the current low interest rate that are not generating enough returns for major investors. If this trend continues, interest rates are bound to go up and the availability of borrowed money for homes will decrease, halting demand and depreciating housing costs. Lenders need to make a profit off of borrowed money; therefore, the interest on that loan must be high enough to compete with alternative investments. If you are thinking of selling, now the time to call your trusted local realtor.
Oakville is a very insulated market and any correction would most likely have minimal effect in Oakville and be short in duration. With the right planning and expert advice, home owners and purchasers can grow fruitful investments in any economic climate.
2007, April 2015, Detached Homes, Economic Climate, Housing, Insulated, Interest Rates, investment, Real Estate Bubble, Realtor, residential inventory, Residential Sales, Sellers Market, Town Homes, Town Houses, United States