Posted 5.11.17 @ 0:0
The provincial government announced new legislation to introduce a Foreign Buyer’s Tax that took effect April 21, 2017. Since then, we have seen a significant impact on the market.
It’s not doom and gloom as some people think.
In fact the real estate market in Oakville remains healthy and more balanced since this announcement. The following numbers and chart really tell the story.
These numbers are for Oakville based activity on the Oakville Milton Real Estate Board:
- 640 Active listings as of May 10, 2017
- 239 Sale listings since April 21, 2017
- 102 since May 1, 2017 or the equivalent of 316 on a monthly basis
- 516 New listings since April 21, 2017
* Inventory Supply is a measure of market liquidity and the average length of time to sell a home in the current market (today’s inventory/last months sales). It is the leading indicator of the liquidity of the market.
What does this mean to Sellers?
Oakville has averaged approximately 700 active listings in a spring market for the past 4 years. We have come out of an unusually low inventory market where frantic buying was happening in multiple offer situations. Average price have grown significantly and likely have peaked in March and we are now back in a balanced market. Prices will likely pull back slightly but it’s not doom and gloom. Seller’s shouldn’t expect the prices we experienced in the early spring now that listing inventory has increased. Don’t expect multiple offers. Expect to negotiate with regular buyer conditions which include home inspections and finance conditions. Patience is the name of the game.
What does this mean to Buyers?
There is a buying opportunity in the next few months as we adjust to the new inventory levels. Seller’s expectations are still high and we likely won’t see bargains as many sellers will test the market to get top dollar without being extremely motivated - and some won’t sell if they don’t get their money. Motivated sellers that have to sell in this market will negotiate and will likely take a little less, hence the pull back in the market. Multiple offers will be limited to certain homes (good quality locations) and normal buyer conditions will get written into sales contracts.
If you're interested in how this information might impact you personally feel free to contact Murray McKeage at Murray@goodalemillerteam.com or contact our office at 905-338-2121.