Oakville's residential real estate market update for May 2022 shows that the market has softened significantly. For the first time in at least a year, properties on average are selling just below the listed prices, with a typical Oakville home selling for $1.5 million.
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.
GTA Update
Across the GTA, owners sold 7,283 (or 4,620 fewer properties) in May 2022 than during May 2021, a 38.8% decrease. GTA property values increased by 9.4% to $1.21 million, up $104,682 from May 2021 but down $82,000 from the $1.3 million high recorded in February 2022.
"After a strong start to the year, the current rate tightening cycle has changed market dynamics, with many potential home buyers putting their purchase on hold. This has led to more balance in the market, providing buyers with more negotiating power,'' said TRREB Chief Market Analyst Jason Mercer.
Oakville Update
During the last month, sellers in Oakville listed 619 properties and sold 259 properties, down nine units from April 2022. Available inventory remained at 0.9 of a month.
The average residential property sold for $1.4 million, down $170,000 from April 2022. A sale took 22 days, which is seven 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 99% of the listed price. This is the first month in many that buyers were not paying more than the listing prices.
Year-over-year home prices
A typical residential property in Oakville is now going for $1,510,300, which has increased by 16.53% since May 2021. An average detached home price is $1,929,200, an increase of 16.24%.
An attached home is $1,264,500, up 20.54% from a year ago, a townhouse will run you 13.25% more at $929,200, and a condominium apartment costs $782,000 - up a staggering 23.15% from last year.
Statistics for May 2022 Oakville residential real estate
| Type | Units Sold | Median Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 134 | $1,789,000.00 | 99% | 14 |
| Semi-Detached | 6 | $1,313,250.00 | 105% | 14 |
| Link | 3 | $1,150,000.00 | 104% | 11 |
| Condo Apartment | 45 | $651,000.00 | 99% | 19 |
| Town House - Condo | 22 | $826,000.00 | 100% | 12 |
| Town House - Freehold | 49 | $1,200,000.00 | 101% | 16 |
| Detached - Condo | 0 | $0.00 | 0% | 0 |
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 3.66%. However, a 10-year fix rate is available at 4.14%. Both are a one-tenth of a percentage point higher than last month.
On Realtor.ca, as of June 6, 2022, the least expensive properties for sale according to type are:
- Detached house on a 31 by 123-foot lot, with three bedrooms and two bathrooms in Glen Abbey for $949,000
- Semi-detached on a 30 by 110-foot lot with three bedrooms and two bathrooms in College Park for $939,000
- Freehold townhouse with three bedrooms and one bathroom in College Park for $809,900
- Condo townhouse with two bedrooms and 2.5 bathrooms in College Park for $749,000
- Stacked condo townhouse with four bedrooms and two bathrooms in Falgarwood for $599,900
- Condo apartment with one bedroom and one bathroom for $479,900 in Kerr Village
At the lowest end of the market, prices can be priced to encourage a quick sale and or a bidding war.
''Bank of Canada rate hikes, including the 50-basis point hike on June 1, are impacting home buyers in the short term. There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer," said TRREB President Kevin Crigger.
"However, as home buyers adjust to higher borrowing costs, housing demand will be supported by extremely low unemployment, high job vacancies, rising incomes and record immigration.''