While some purchasers jumped into the Oakville housing markets to find a property before the new OSFI stress test took effect, the majority of prospective homeowners elected to wait on the sidelines in order to gauge the impact of the new policies. This however did not translate into a large reduction in pricing, as inventory remained low across the regions. Existing residents are now also holding off on listing their homes, believing that pricing may be rekindled once new market conditions are absorbed. During the quarter the aggregate price of a home in Oakville increased by 14.2 per cent year-over-year to $1,105,412.
“Aggregate" means a mixture of all home types (detached, townhomes, condo’s). Big influences on price are the high demand and the low inventory (available homes on the market), and the new mortgage rules. In addition, Millennials are increasing adding to the demand for homes.
Full report here: http://markets.businessinsider.com/news/stocks/The-Greater-Toronto-Area-s-Housing-Market-Sees-Double-digit-Year-over-year-Price-Gains-in-the-Fourth-Quarter-of-2017-Despite-Softness-in-Quarterly-Trends-1012803221
Implications for buyers:
As demand intensifies, compromise becomes more important. Reconsider locations and style of dwelling to fit your budget and lifestyle goals, so that you get into the market and benefit from the next few years of price growth. Its a relatively balanced market, so there will be an advantage to acting quickly and that means get yourself well educated on your financing position and on the market, so you can make a quick decision when a good property becomes available.
Implications for sellers:
There are lots of buyers out there but in this balanced market, they’ll have some level of choice, relative to the Spring of 2017. Prices peaked in the buying frenzy as of April 2017. Year over year, prices are well up so its been a great 12 months for capital appreciation. The market will value your home based on comparable sales. Properly priced homes are selling. Ensure that if you accept a conditional offer, try to ensure the buyers are well qualified (recently) relative to their financing plans.
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