Sales in the average Canadian market increased significantly during November and December 2017 due to a rush of buyers trying to get into the market before the new mortgage rules came into effect in January 2018. But not every city experienced frenetic sales activity. According to Dennis Horton, President of The Oakville, Milton and District Real Estate Board, “the number of sales has decreased and this could be a result of the impending mortgage changes. We look forward to seeing what the market brings leading into the new year.”
Oakville-Milton market on different path than nationwide markets
Surely enough, we saw significant, and sometimes record-breaking year-over-year increases for December in several markets. A significant trend was an across the board increase in total housing inventory, and an increase in sales as well. The Oakville-Milton area had a last-minute increase in listings on 2017, but on the other hand, there was a decrease in volume of sales. According to the Oakville, Milton and District Real Estate Board, there was a 4.93% decrease in property sales in November 2017, compared to the same period in 2016. At the same time, there was an increase in listings in November 2017 of 26.74% compared to November 2016.
There was also a significant difference between December of 2017 and December of 2016 in the number of active residential listings, with December 2017 nearly doubling December 2016 levels. This increase in inventory has had an adverse effect on the average home price. While there was an increase in average home price around January and February, there was a decrease of 13.27% in average price from November 2016 to November 2017 in Oakville, and a small increase of 2.31% in Milton in the same period.
New home sellers will have a tougher time in 2018
As we go into 2018 with a large housing inventory available and more challenging requirements for new mortgages, we can expect housing prices to stay stable. There is little reason to believe that there will be any sudden or significant increase in average home sales and prices are likely to continue to go down for at least the first quarter of 2018. It’s difficult to predict how far this trend will continue until prices get to the point where homebuyers to start looking again. We can also expect an increase in interest rates by the end of 2018, which could hamper affordability even further.
If you’re looking to buy a home in the Oakville-Milton real estate market, make sure that you communicate with your trusted real estate agent and calculate your purchasing power. There will always be variations no matter what the overall market says, and you can always find good deals by keeping your ear to the ground. At the same time, if you’re looking to sell, your real estate agent should be able to help you price your property to sell so that you can compete with similar homes and not have to stay on the market for too long.