One of the things I do as a Milton mortgage broker is to keep an eye on the real estate market. There have been a few changes this year that have impacted home buyers and sellers alike. So far, it looks like sales are getting closer to what is considered historically normal. It’s put a bit of pressure on home prices along the way. Let’s take a look at what has been happening up until now.
In February, the market was at a 6-year low, but we started to see improvements over the past few months, with sales rising by 1.9% and being 6.7% higher than they were at this time last year. However, we have seen a dip in the supply of new homes coming onto the market. Last month, on average, saw a 1.2% dip for newly listed homes in comparison to last quarter. The national average home price rose by 1.8% and this has all worked to push things into a more seller-friendly market.
Last month saw Ontario home prices rise in all but two markets; District and Barrie. Guelph saw a 5.7% rise, Hamilton-Burlington a 3.4% rise, Niagara a 5.4% rise, and the Oakville-Milton area a 3.4% rise.
The Home Prove Index showed an overall drop for the fifth month in a row by 0.6%. What this may indicate is a larger portion of homes that are more affordable now, such as single-family homes and condos. It is expected that Canada will see a rise in sales as we move into 2020.
The slow rise in sales may seem encouraging to some, but there has been a gap growing in price trends between Western and Eastern Canada. Where Ontario could see a hotter market, areas such as Alberta haven’t been so lucky.
Figures that have been released by the Oakville, Milton, and District Real Estate Board at the start of August have shown a decrease in sales for all property types in July. When compared to July of 2018, we can see a drop in monthly sales from the 701 in July of 2018, to 691 this July. There has also been a drop in new property listings for this year, going from last year’s1,127 to 1,023 for this July.
So far, this summer has seen a relatively stable market. It’s still, for the most part, a seller’s market, despite the Mortgage Stress Test change. For sellers, it a bit of good news as we see home prices creeping up. For buyers, this is a good time to invest with the prospect of creating wealth in the long-term.
As we look ahead into autumn, it is expected that the market will remain stable. This July saw the value of property sales at around $474,736,790 in comparison to July 2018’s figure of $436,854,720. The average sales price for the region for July 2019 sat at $768,110, which is up by 10.08% in comparison to last July when the figure was sate at $1,078,305.
So, things look like they are stabilizing and slowly improving. If you want to know more about what is available in the Oakville, Milton and Burlington, Ontario Areas, give our Milton mortgage broker team a call today.