June 2023 sales in Oakville saw a modest decline in month-over-month average home prices and units sold. Bucking the trend are attached homes and townhouses, of which both realized year-over-year increases of over 3%.
"A resilient economy, tight labour market and record population growth kept home sales well above last year’s lows," said TRREB Chief Market Analyst Jason Mercer.
"Looking forward, the Bank of Canada’s interest rate decision this month and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels."
"June home sales and prices were up strongly over 2022, with values buoyed by a lack of supply across all home types. The Bank of Canada's rate hike may have taken some of the enthusiasm from the market, as there was a small dip from May prices," says OMDREB President Hunter Obee.
"Demand appeared to be robust, with some buyers, however, unable to find a suitable home due to the sharp reduction in supply."
GTA Update
Across the GTA, owners sold 7,481(or 1,059 more properties) in June 2023 than in 2022, a 16.4% increase. Over the same period, GTA property values decreased by 3.1% to $1,182,120, up $36,324. This marks the fifth consecutive month of increasing prices.
"Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and the resulting impact on affordability," continued Mercer.
Oakville Update
During the last month, sellers in Oakville listed 556 properties and sold 270. Available inventory declined to 2.3 months, or 0.1, from May.
The average residential property sold for $1.568 million, up $14,000 from May; a sale took 21 days, an increase of just two days from May.
Buyers, on average, were paying 101% of the listed price, down 2% from May.
"June home sales and prices were up strongly over 2022, with values buoyed by a lack of supply across all home types. The Bank of Canada's rate hike may have taken some of the enthusiasm from the market, as there was a small dip from May prices," says OMDREB President Hunter Obee.
"Demand appeared to be robust, with some buyers, however, unable to find a suitable home due to the sharp reduction in supply."
Year-over-year home prices
A typical residential property in Oakville now costs $1.436 million, which has dropped by 2.09% since June 2022 but is slightly down from May 2023. An average detached home price is $1.882 million, down 1.33% and down $72,000 from the previous month.
A semi-detached home is $1.222 million, up 3.22% from a year ago. A townhouse will run you 3.87% more at $922,300. A condominium apartment costs $680,700 - down 8.24% from last year and up from the previous month by $9,100.
June 2023 Oakville residential real estate statistics
| Type | Units Sold | Median Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 132 | $1,902,500.00 | 100% | 13 |
| Semi-Detached | 6 | $1,265,000.00 | 105% | 6 |
| Link | 3 | $1,300,000.00 | 106% | 6 |
| Condo Apartment | 54 | $620,000.00 | 98% | 30 |
| Town House - Condo | 24 | $875,000.00 | 103% | 12 |
| Town House - Freehold | 51 | $1,210,000.00 | 106% | 9 |
DOM - total days a property is for sale; % LP to SP - the percentage difference between the list price and the sold price.
The best 5-year fixed-rate insured mortgage is 4.74%, which increased by 0.25% from the May real estate update. However, a 3-year variable rate is available at 5.75%, down 0.1%. It appears that lending institutions are predicting that the Bank of Canada will increase its lending rate to combat inflation.
Bank of Canada's Tiff Macklem increased the Bank of Canada rate as the Consumer Price Index (CPI) decreased significantly to 3.4% or 1%. It peaked at 8.1% in June 2022.
Macklem is tackling inflation that is driven by a scarcity of supply in housing. However, as families grow, they need to be able to find suitable housing - which will simply force home prices to escalate.
"GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth," stressed TRREB CEO John DiMichele.