In the latest local market update, we begin to see the start of a slow-down in the Oakville housing market.
Are home sales finally beginning to cool off?
Per the most recent statistics from the Oakville, Milton and District Real Estate Board, home sales in May were down 19% year-over-year while the number of new listings jumped more than 40%.
Local inventory continues to rise, but the slow-down in sales could be an indicator that the local real estate market is finally starting to cool down. This comes only a couple of months after our last market update in April, where there were no signs of the market slowing down in the first three months of the year.
However, the slow-down effect may not just be limited to Oakville. Home sales across the country decreased by more than 6% year-over-year last month, the largest fall in nearly five years. Although sales dropped in Oakville, the median sale price continued to rise.
In May 2017, the median sale price for a residential property was $1,045,000, up a massive 28% compared to May 2016. Total sales volume for the month dropped by 11.8% to $664,158,892 in May 2017 from May 2016. So, although prices were significantly higher last month, the overall dollar total of homes sold was down due in large part to the lack of buying activity.
What could this mean for the future of not only the Oakville housing market but the real estate market nationwide?
After experiencing record-breaking numbers in many cities across both Ontario and Canada, it was only a matter of time that we would experience a cool-down in housing market activity. However, how long this cool-down lasts is the big question. Is this just a short-term thing or are we beginning to see that people have had enough with some of the sky-high average home prices?
Only time will tell.
If you’re looking at entering the buying or selling market in the area, it’s a great idea to speak with a broker from the Loewen Group if you want to find some of the lowest mortgage rates Oakville.
To learn more, contact one of our mortgage brokers today!