Era Estremera on Unsplash
Oakville's residential real estate market update for June 2022 shows that the market continues to soften as prices drop from their staggering heights established in February 2022. However, prices are still over 10% above last year, which is still an incredible return.
"Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein home buyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up," said TRREB President Kevin Crigger.
"Expect current market conditions to remain in place during the slower summer months. Once home prices stabilize, some buyers will re-enter the market despite higher borrowing costs."
GTA Update
Across the GTA, owners sold 6,474 (or 4,579 fewer properties) in June 2022 than during June 2021, a 41.7% decrease. GTA property values increased by 5.2% to $1.14 million, up $57,263 from June 2021 but down $160,000 from the $1.3 million high recorded in February 2022. That is a drop of 12.3%.
Oakville Update
During the last month, sellers in Oakville listed 570 properties and sold 227 properties, just few less than in May. Available inventory expanded to one month, which hasn't occurred in a year.
The average residential property sold for $1.43 million. A sale took 27 days, five days more than in April 2022.
Even with a decrease in activity and an increase in the number of days a property is listed, purchasers, on average, are paying 97% of the listed price, a decline of 2% from last month. This is positive news for buyers as prices start to flatten.
"Buyers are still actively looking to purchase when possible, but due to economic uncertainty, may temporarily sit on the sidelines," said OMDREB President Vishal Kapoor.
Year-over-year home prices
A typical residential property in Oakville is now going for $1,471,000, which has increased by 11.6% since June 2021. An average detached home price is $1,894,000, an increase of 11.98%.
An attached home is $1,203,000, up 12.24% from a year ago, a townhouse will run you 9.97% more at $829,000, and a condominium apartment costs $747,900 - up 15.78% from last year.
"Listings will be an important indicator to watch over the next few months," said TRREB Chief Market Analyst Jason Mercer. "With the unemployment rate low, the majority of households aren’t in a position where they need to sell their home."
"If would-be sellers decide to take a wait-and-see attitude over the next few months, it’s possible that active listings could trend lower as well. This could cause market conditions to tighten somewhat, providing some support for home prices.”
Statistics for June 2022 Oakville residential real estate
DOM - total days a property is for sale; % LP to SP - the percentage difference between the list price and the sold price.
According to RATESDOTCA, the best 5-year fixed-rate insured mortgage is 4.19%. However, a 10-year fixed-rate is available at 4.94%. Both are up 0.5% from May 2021.
On Realtor.ca, as of July 7, 2022, the least expensive properties for sale according to the number of bedrooms
- 1 bed 1 bath condo apartment in Glenorchy listed for $499,999
- 2 bed 1 bath condo apartment in Glen Abbey listed for $569,000
- 3 bed 2 bath stacked townhome in Falgarwood listed for $499,000
- 4 bed 2 bath stacked townhome in Falgarwood listed for $599,900
"Current conditions remain tight for some, and this will impact the rental market moving forward," continued Kapoor. "Rentals are expected to see growth from those who need a place to live but are not ready to become homebuyers at the present time."
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Obi Onyeador on Unsplash
May 2021 Oakville Real Estate Update
Purchasing a home in Oakville is getting harder as the available inventory of resale properties decreased to 1.2 months.
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Katherine Hanlon on Unsplash
May 2022 Oakville real estate update
In what was traditionally one of the busiest months for selling real estate, May 2022 transactions are well below the norm. However, sellers also appear to be holding off listing their properties, and buyers hold off purchasing.
