August 2023 Oakville real estate update - balanced

A detailed analysis

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In August 2023, the Oakville real estate market experienced a shift after the Bank of Canada decided to hold its lending rate at 5%. While inventory remained stable at 2.3 months, the average home price in Oakville saw an uptick over July, reaching $1.49 million. However, no segment of the market realized offers over asking. 

GTA Update

Across the Greater Toronto Area (GTA), there was a 5.19% decrease in the number of properties sold in August 2023 compared to the previous year. A total of 5,294 properties were sold, 290 fewer than in 2022. Despite the softer market, property values in the GTA increased by less than 1%, reaching $1,082,496, representing an increase of $3,448 from the previous year.

This price stability can be attributed to more balanced market conditions during the summer, according to TRREB Chief Market Analyst Jason Mercer.

Oakville Update

In the past month, Oakville sellers listed 488 properties and successfully sold 183 of them. The available inventory remained stable at 2.3 months since June. The average residential property in Oakville was sold for $1.49 million, marking an increase of $160,000 compared to July.

The average number of days it took for a sale to be finalized also saw an increase, reaching 32 days in August, an increase of 10 days since June.

Additionally, buyers, on average, were paying 98% of the listed price, which remained unchanged from July.

"The market in August continued to show signs of resilience, with some hesitation from buyers based on concerns due to higher borrowing costs," stated OMDREB President Hunter Obee, echoing a similar statement of TREB President. 

Year-over-Year Home Prices

Comparing prices with the previous year, a typical residential property in Oakville now costs $1.411 million, reflecting a 4.99% increase since July 2022. The average price for a detached home stands at $1.861 million, reflecting a 6.99% increase. 

For semi-detached homes, the average price increased by 8.35% to $1.183 million. Townhouses also saw a significant increase of 10.33%, with the average price now at $992,900. On the other hand, the average price of a condominium apartment decreased by 1.39% to $683,200 compared to the previous year and remained relatively stable since July.

August 2023 Oakville residential real estate statistics

DOM - total days a property is for sale; % LP to SP - the percentage difference between the list price and the sold price.

The best 5-year fixed-rate insured mortgage is 5.09%, which is unchanged from the July real estate update. However, a 3-year variable rate is available at 7.7%, increased by 1.6%.

The Bank of Canada's Governor, Tiff Macklem, increased the Bank of Canada rate as the Consumer Price Index (CPI) rose to 3.3%, indicating a 0.5% increase. However, the Bank of Canada takes into consideration three other CPI indicators: CPI-trim, CPI-median, and CPI-common. These indicators, which are all above the target rate of 2%, showed a downward trend for July. The trim indicator decreased by 0.1% to 3.6%, the median indicator decreased by 0.2% to 3.7%, and the common indicator decreased by 0.3% to 4.8% since June.

Looking ahead, there is expected to be solid demand for housing in the Greater Toronto Area, driven by record immigration levels. However, the market may see some volatility in terms of sales and home prices as buyers and sellers wait for more certainty regarding borrowing costs and the overall economy. The Oakville real estate market remains attractive.