In September 2023, the Oakville real estate market saw a slight decrease in values in detached properties; however, increases year over year held for all other types, including condo apartments, which realized an increase of 2.7% to $689,400, the first in almost a year.
GTA Update
Across the Greater Toronto Area (GTA), there was a 7.1% decrease in the number of properties sold in September 2023 compared to the previous year. A total of 4,642 properties were sold, 357 fewer than in 2022.
Despite the softer market, property values in the GTA increased by 2.1%, reaching $1,119,482, representing an increase of $22,890 from the previous year.
"GTA home selling prices remain above the trough experienced early in the first quarter of 2023," said TRREB Chief Market Analyst Jason Mercer.
Mercer shared that the combination of the balanced summer and early fall market, combined with steadily increasing inventory, may provide purchasers with more negotiating power, helping to offset higher borrowing costs.
Oakville Update
In the past month, Oakville sellers listed 632 properties and successfully sold 182. The available inventory increased marginally to 2.4 months since August. The average residential property in Oakville was sold for $1.55 million, marking an increase of $60,000 compared to August.
The average number of days it took for a sale to be finalized also saw an increase, reaching 29 days in August, a decrease of 13 days since June.
Additionally, on average, buyers were paying 98% of the listed price, which remained unchanged from July to August.
Year-over-Year Home Prices
Comparing prices with the previous year, a typical residential property in Oakville now costs $1.37 million, reflecting a 1.12% decrease since August 2022. The average price for a detached home stands at $1.799 million, reflecting a 0.26% decrease.
For semi-detached homes, the average price increased by 1.5% to $1.144 million. Townhouses also saw a significant increase of 6.03%, with the average price now at $922,800. For the first time this year, the average price of a condominium apartment increased by 2.78% to $689,400 compared to the previous year, an increase from August.
September 2023 Oakville residential real estate statistics
| Type | Units Sold | Median Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 101 | $1,730,000.00 | 98% | 22 |
| Semi-Detached | 7 | $1,145,000.00 | 103% | 10 |
| Detached-Condo | 2 | $906,000.00 | 100% | 13 |
| Condo Apartment | 27 | $580,000.00 | 98% | 23 |
| Town House - Condo | 13 | $932,500.00 | 99% | 20 |
| Town House - Freehold | 32 | $1,225,000.00 | 101% | 13 |
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 5.19%, an increase of 0.1% from the August real estate update. A 3-year variable rate is available at 7.7%, unchanged from the previous month.
The Consumer Price Index (CPI) rose to 4%, a 0.7% increase from August. However, the Bank of Canada considers 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 increased by 0.3% to 3.9%, the median indicator Increased by 0.4% to 4.1%, and the common indicator remained unchanged at 4.8%.
The next CPI figures will be released on October 25, when the Bank of Canada will make another decision. There is a discussion that mortgage rates are now adding to the overall increase of inflation.