While the summer temperatures are heating up, the housing market is shifting from the highs experienced earlier this year to a more balanced market. Housing market conditions continue to evolve despite the rate hikes in interest rates. Similar to April results, May 2022 sales and average price are down on a monthly and annual basis. We see a strong balanced market ahead with 2-3 months of inventory, which is typical. To put this in context in February/March of this year we had half a month of inventory compared to 1.8 months of inventory now. This means that it would take about 1.8 months to sell all the homes currently listed on the market, at the current rate of sales.
“ The demand for housing will be supported by extremely low unemployment, high job vacancies, rising incomes and immigration” said TREB President Kevin Crigger.
In May 2022 sales were down 38.8% compared to May 2021 and down 9% compared to April 2022. The number of new listings is up 26% over last year which has led to a more balanced market.
Although Sales are down both on an annual and monthly basis, the average price continues to rise annually across Oakville, Mississauga, Burlington and Toronto This shows that despite the fact that we are heading towards a balanced market, Sellers continue to be making a strong return on their investments.
What this means for Buyers: Buyers have more options to choose from and will find themselves with less competition when it comes time to put forth an offer and with more negotiating power.
What this means for Sellers: Sellers, now is the time to sell. With the interest rates continuing to rise, buyers who already have a locked in rate will be looking to buy now. You can still take advantage of the Seller's market before we truly see a balanced market which is the way we are heading.
Detached residential property in Oakville has had an increase in price of 16.24% over last year, TOWNHOMES have increased 13.25% and CONDOS have increased 23.15%.
In this changing market it is important to price your home accurately for sale. We are happy to provide you with market stats for your neighbourhood and a complimentary home evaluation at any time.
We are seasoned negotiators and look forward to helping you navigate this changing market.