With 1.2 months of residential resale inventory available, homebuyers continue pushing up prices by paying on average 103% more, according to May 2021 Oakville real estate statistics. The typical price tag for an Oakville home dipped slightly to $1.1 million but is still 23% more expensive than a year ago.
"The inventory shortage that we’ve been experiencing throughout the GTA continues to have an impact in our trades, which is driving up average sale prices and drastically dropping the days on the market," explains OMDREB President Lynn Hoffmann.
"Unfortunately, this means many people are being priced out of the market, something which we cannot afford to see carry on. The need for more affordable housing is apparent, and something that OMDREB continues to advocate for."
Residential sales across the GTA saw property owners selling 7,357 more properties during May 2021 than during May 2020; however, in May 2020, sellers and buyers were still unsure how the pandemic would affect the housing market. A better comparison is May 2019, when 9,989 properties sold, which translates to a 19% increase in unit sales.
GTA's residential property values from May 2019 to May 2020 recorded a reasonable 2.9% increase. Still, the average property price increased by 28% from May 2020 to May 2021 to $1,108,453, indicating that the escalation of property values has not receded.
“There has been strong demand for ownership housing in all parts of the GTA for both ground-oriented home types and condominium apartments. This was fueled by confidence in economic recovery and low borrowing costs," stated TRREB President Lisa Patel.
During the month, sellers in Oakville listed 590 properties and sold 410 properties sold, leaving 1.2 months of inventory down 0.1 from April 2021. The typical residential property sold for $1.297 million, up from $1.285 million in April 2021. A sale took, on average, 15 days. Constricting inventory and strong demand resulted in multiple offers, which pushed prices 103% above the listed price.
Year-over-year home prices
An average residential property in Oakville is now going for $1.223 million, which has increased by 23.5% since May 2020. An average detached home price is $1.47 million, an increase of 26.3%. An attached home is $1.049 million up 27.19%, a townhouse will run you 22.04% more at $824,800, and a condominium apartment costs $685,600 - up 13.91%.
Statistics for April 2021 Oakville residential real estate
| Type | Units Sold | Medium Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 233 | $1,595,000.00 | 103% | 11 |
| Semi-Detached | 12 | $1,190,750.00 | 110% | 6 |
| Link | 3 | $1,220,000.00 | 113% | 4 |
| Condo Apartement | 45 | $598,000.00 | 101% | 14 |
| Condo Town House | 40 | $779,000.00 | 104% | 15 |
| Freehold- Town House | 76 | $1,074,625.00 | 107% | 9 |
DOM - total days a property is for sale; % LP to SP - the percentage difference between the list price and the sold price.
Current Listings
As of June 15, 2021, on Realtor.ca, here are the most affordable listings according to the number of above-ground bedrooms in Oakville
- $450K for one bedroom, one bath condo apartment in Palermo
- $490K for two bedrooms, one bath condo apartment in Glen Abbey
- $469K for three bedrooms, one bath condo apartment in Falgarwood
- $620K for a four bedrooms, three bath condo townhouse in Falgarwood
So how affordable is Oakville, Ontario?
Currently, the best-advertised mortgage rate is fixed for three years at 1.54% per year from MCAP. With a 25 year amortization, the cost per $100K is $92.64 per week or $401.44.
If a buyer purchased the least expensive property listed above and put a 10% downpayment ($45,000), their weekly mortgage payment based on the information above would be $375.18 or $19,509.36 per year in after-tax income.
The average annual income in Oakville is around $60,000, and after-tax, it drops to $49,300 or $948 per week. The mortgage, in this case, would take 39.5% of this person's tax home pay, or 32% of their gross income.
If there is just a 1% increase in the mortgage rate, the weekly cost of the mortgage increases to $420.30, though getting a mortgage requires buyers to pass Canada's mortgage stress test.