The condominium apartment market in Oakville has experienced a significant shift over the past year. While sales have increased compared to the previous year, the number of listings has surpassed the growth in sales, resulting in a decrease in prices.
In the third quarter of 2023, Oakville reported 98 condominium apartment sales, representing a 24% increase compared to the same quarter in the previous year. This surge in sales reflects buyers' growing interest in the condominium market.
However, it is noteworthy that new condo apartment listings have experienced an even more substantial growth, with a staggering 63% increase during the same period. This indicates a higher supply of available units in the market.
According to TRREB President Paul Baron, the increased supply of condominium apartments has provided first-time buyers with more options.
This influx of listings has granted these buyers more negotiation power, leading to lower selling prices on average. As a result, buyers have navigated the market with greater ease and affordability. Additionally, the pause in price growth has helped offset the impact of higher monthly mortgage payments.
Despite the market becoming more balanced, there has been a notable decline in the average selling price for a condominium apartment in Oakville.
In the third quarter of 2023, the average selling price was $655,000, which marks a significant decrease of $223,000 compared to the same quarter in 2022. This price decline can be attributed to the increase in listings and the subsequent negotiation power of buyers.
Although the market has achieved balance, TREB's Chief Market Analyst, Jason Mercer, anticipates a tightening of the market in the coming years.
Mercer predicts that the market will become more competitive in 2024 as the Greater Toronto Area's population continues to grow rapidly. Additionally, the easing of borrowing costs starting in 2024 is expected to impact market dynamics further.