The Oakville real estate market is directly correlated to the mortgage industry. As one of the leading Oakville mortgage brokers, James and his team at the Loewen Group are committed to providing their clients with the most accurate information available.
In July 2016 we experienced a decrease in sales and an increase in the average sale price in Oakville.
After recording 361 residential home sales in June 2016, sales dropped to just 260 in July 2016. This was also a decrease from July 2015 when 279 units were sold.
This occurred with a significant jump in the average sale price for residential homes in July. In July of last year the average sale price was $851,167 before skyrocketing to $1,049,190 in July 2016. This could very well have had an impact on why the number of units sold dropped off.
According to the Oakville, Milton and District Real Estate Board, the number of property listings fell by just over 20% year-over-year, going from 1,247 units to just 988 last month. The lack of selection available to buyers is another factor to consider when looking for an explanation of the sales decrease.
Helping the average price rise is the fact that 64% of all detached homes sold in July 2016 sold for $1,000,001 or more. This is a significant difference from July 2015 when just 32% of total detached sales sold for that price.
There was also a rise in the number of detached homes purchased in the $800,001 to $1,000,001 range. In July 2015, 23.5% of detached homes were sold in this range while 26% units were sold in the same price range in July 2016.
The President of the OMDREB stated that sales continue to decline yet there remains a steady increase in the sale price, and these statistics certainly prove that.
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For all areas covered by the OMDREB, total sales dipped from 947 in July of last year to 777 last month.
Because of the price hike the decrease in the number sales hasn’t had too much of an impact of overall sales volume for the month of July. July 2016 experienced a 0.80% drop in total dollar volume year-over-year, recording a total of $320,274,994 compared to $324,493,383 in July 2015 for areas under the OMDREB.
Oakville continues to be a desired location for many home buyers and currently supply is struggling to keep up with demand. The decreasing number of homes available are forcing buyers to pay a higher amount for homes they want, much to the delight of sellers.
This trend looks to continue in the coming months and will need to be monitored accordingly as buyers try to enter the market.
If you’re interested in buying or selling a home and want to work with one of the best Oakville mortgage brokers who truly cares about your needs, we encourage you to contact us today!