There has been a lot of discussion in the Real Estate Market about where we're heading this spring/summer.
"Based on trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation" said TREBB President Kevin Crigger. This is shown below across the amount of sales amongst all home types.
Oakville had 1,141 Sales in April 2022, vs. 1,841 last year which is a decline of 38%.
Burlington had 1,055 Sales in April 2022, vs. 1,337 last year which is a decline of 21%.
Toronto had 12,465 Sales in April 2022, vs. 16,215 last year which is a decline of 23%.
Our observation for the decline in Sales is that Buyers are taking time to re-assess their purchasing power given the recent and upcoming interest rate hikes. Having said that, Buyers who have locked in a mortgage rate for 90-120 days with their Lendor will likely be purchasing during this time frame.
In Oakville, the average sale price (all home types) in April was $1,788,342 vs. $1,471,838 which is an increase of 21.5%. However we have seen a small decline since March 2022 of 1.6%.
In Burlington, the average sale price (all home types) in April was $1,326,753 vs. $1,059,466 last year, represents a 25% increase year over year. Similar to Oakville, there has been a decline of 2.7% since March 2022.
In Toronto, the average sale price (all home types) in April was $1,196,454 vs. $1,028,662 last year which is an increase of 16%. Unlike Oakville and Burlington, Toronto has seen a 1.3% increase of the average price since last month.
The market is very healthy in terms of average prices and inventory levels which shows us signs that the market is becoming more balanced.
Inventory continues to improve in all markets compared to the sparce inventory we had at the start of the year. Even though there are numerous active listings on the market, many are from the previous month that have yet to sell. We are seeing properties on the market for a longer period of time.
As a Seller, it is best to consult us to determine an attractive list price and ensure that your home is showcased to the best of its ability though our robust marketing strategies.
As a Buyer, you have more options based on the number of active listings, more negotiating power, and less competition (decrease in showings in properties).
A balanced market represents 90 days of inventory.
Sellers Market: Less than 90 days of inventory on the market
Buyers Market: Greater than 90 days of inventory on the market.
Presently we have 58 days of inventory in Oakville, 42 days of inventory in Burlington, and Toronto has 57 days of inventory.
In summary, given that the # of Sales have decreased significantly and active listings are growing, this indicates that we may be heading towards a balanced market.
We are here to help you navigate this market.