Oakville's residential real estate market update for November 2022 shows the price resiliency of lower-cost apartments, which year over year has increased to $673,400, up 0.49%. The pricing of other types of housing has not faired as well.
The Bank of Canada did announce an increase of 0.5%, bringing the lending rate to 3.75%. It did increase the 5-year fixed mortgage rate, but the 10-year rate decreased by 0.38%.
The federal bank uses the Consumer Price Index, which, as of October 2022, has increased year over year by 6.9% but remained unchanged from October, which may inspire the Bank of Canada to be more aggressive in its rate hike expected on Wednesday, Dec. 7.
GTA Update
Across the GTA, owners sold 4,544 (or 4,435 fewer properties) in November 2022 than in November 2021, a 49% decrease. Over the same period, GTA property values decreased by 7.15% to $1.079 million.
"Increased borrowing costs represent a short-term shock to the housing market," said TRREB President Kevin Crigger. "Over the medium- to long-term, the demand for ownership housing will pick up strongly. This is because a huge share of record immigration will be pointed at the GTA and the Greater Golden Horseshoe (GGH) in the coming years, and all of these people will require a place to live, with the majority looking to buy."
He continues, "The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth."
Oakville Update
During the last month, sellers in Oakville listed 290 properties and sold 155 properties. Available inventory expanded to 1.9 months, a steady increase from the previous month.
The average residential property sold for $1,396,000; a sale took 39 days. The days on the market (DOM) have decreased by over 18 since August 2022, but the average sale price has increased.
Even with a decrease in activity and an increase in the number of days a property is listed, purchasers, on average, are paying 98% of the listed price, up 2% from October 2022.
"Increased borrowing costs represent a short-term shock to the housing market. Over the medium- to long-term, the demand for ownership housing will pick up strongly," said TRREB President Kevin Crigger.
Year-over-year home prices
A typical residential property in Oakville is now going for $1,337,000, which has dropped by 11.22% since November 2021. An average detached home price is $1.712 million, down 12.09%.
An attached home is $1,108,000, down from 12.23% from a year ago, a townhouse will run you 7.77% less at $856,000, and a condominium apartment costs $673,400 - up 0.49% from last year.
"Selling prices declined from the early year peak as market conditions became more balanced and homebuyers have sought to mitigate the impact of higher borrowing costs," said TRREB Chief Market Analyst Jason Mercer.
"With that being said, the marked downward price trend experienced in the spring has come to an end. Selling prices have flatlined alongside average monthly mortgage payments since the summer."
Statistics for November 2022 Oakville residential real estate
| Type | Units Sold | Median Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 81 | $1,617,000.00 | 97% | 25 |
| Semi-Detached | 4 | $1,025,000.00 | 97% | 14 |
| Link | 2 | $1,055,000.00 | 96% | 17 |
| Condo Apartment | 24 | $637,500.00 | 97% | 31 |
| Town House - Condo | 19 | $799,000.00 | 97% | 26 |
| Town House - Freehold | 25 | $1,125,000.00 | 99% | 24 |
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 4.74%, up 0.05% from the October real estate update. However, a 10-year fixed-rate is available at 5.34%, down 0.38%
On Realtor.ca, as of Dec. 6, 2022, the least expensive properties for sale according to bedrooms
- 1 bed 1 bath apartment in Bronte listed for $499,000
- 2 bed 1 bath apartment located in Kerr Village listed for $499,000
- 3 bed 1 bath stacked townhouse located in Falgarwood listed for $509,000
- 4 bed 3 bath townhouse located in Falgarwood is listed for $819,000
The most expensive listings according to type:
- Apartment - 3 bed, 5 bath in Old Oakville is listed for $8.99 million
- Townhome - 4 bed, 5 bath in Old Oakville is listed for $5.69 million
- Detached home - 7 bed, 9 bath in Southeast Oakville is listed for $19.98 million