And how this differs from the General market reports from the Toronto Real Estate Board?
We know we’ve had a slow start this year, but the market has picked up considerably since mid-May and the overall sentiment is quite positive, more so now than any other point in 2019. TREB reports average prices have risen 3% this year in the GTA, new listings are lower than in 2018 at this time and sales are on par or slightly higher in 2019 vs 2018.
Here is a snapshot of the West-GTA area including Mississauga, Oakville, Milton and Burlington (the markets we cover). Performance is very strong under $1.5m and mostly a seller’s market under the $1m price point. That said, with average prices in Oakville being higher than the other three markets, inventory supply remains higher at 4 months vs Burlington and Mississauga at 2.1 months and Milton at 2.4 months.
Just a refresher; inventory supply is a ratio of # of listings at any given time relative to sales in the most recent 30-day period. We consider a seller’s market around 0-2 months, balanced market around 2-4 months and a Buyer’s market over 4 months supply.
We’ve grouped some of our findings in the chart below, specifically highlighting the various markets we are experiencing based on price segmentation and property type (condo vs freehold). Take a look and see where you sit.
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Now we broken this information down into price segments so you can better understand what is happening in your specific market.
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The four cities are experiencing very different markets. 71% of the listings in Mississauga are in a sellers market. Conversely, the percentage of listings in Burlington, Milton and Oakville in a sellers market is 57%, 45% and 9%, respectively. This is a major difference in these markets and demonstrates just how price point has a significant affect on the markets.
Generally speaking, in higher price points, the market is more difficult for listed sellers and more price sensitive as inventory supply remains very high in some areas and sub-neighbourhoods.
This environment of fast-moving lower price points typically supports the “move-up” buyer strategy where individuals can sell quickly in a seller’s market and purchase in a higher price bracket in the buyer’s market segment. Essentially “moving-up” to a larger home with a manageable price jump.
The Condo markets in Mississauga and Burlington, remain very strong with 1.7 and 1.5 months supply of inventory respectively. Lower priced condos are selling very strongly.
What does this really mean? This has created a buying opportunity for those considering a luxury property, as you are purchasing in a highly-inventoried segment, inevitably allowing some purchasing leverage. If you are selling in the luxury segment, it is critical that you work with qualified realtors with local presence and knowledge as they can best represent your interests.
As always, connect with me directly if you need any specific information about your home, neighbourhood or market.
Are you looking to buy or sell in Oakville or the surrounding areas? We'd love to hear from you. Contact The Goodale Miller Team today or view our homes for sale here.
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