Burlington Real Estate Market Update: August 2024 Trends and Insights

Key Takeaways from the Burlington Real Estate Market – August 2024

1. Sales Volume: The Burlington real estate market saw a total of 156 sales in August 2024, down 16% compared to the same period in 2023.

2. New Listings: There were 358 new listings for the month, reflecting a 5% increase from last year.

3. Average Sale Price: The average sale price increased to $1.18 million, representing a 9.5% rise year-over-year.

4. Detached Homes: Total detached home sales were 79, down 6% from last year, with an average price of $1,534,410, up 8%.

5. Days on Market: It takes an average of 26 days to sell a detached home, slightly longer than the 21 days reported last year.

6. Condo Market: The average price for condos rose to $742,000, with sales remaining steady at 38 units compared to last year.

The Story Behind the Numbers

The Burlington real estate market in August 2024 presents a mixed picture, combining resilience with signs of caution among buyers. With a total of 156 sales, the market experienced a significant drop of 16% compared to August 2023. This decline can be attributed to several factors, including rising interest rates and shifting buyer sentiments as potential homeowners navigate economic uncertainties.

Despite the decrease in total sales, the market has seen an increase in new listings, with 358 properties hitting the market, up by 5%. This increase in inventory indicates that sellers are keen to take advantage of the current prices, which have risen, as evidenced by the average sale price of $1.18 million—a robust 9.5% increase from the previous year.

A Buyer’s Perspective

For buyers in Burlington, the data tells a compelling story. Although total sales are down, the rising average sale price suggests that competition remains in certain segments of the market. Buyers should be aware that while the number of active listings has increased—reaching 643 by the end of the month—higher prices may still pose challenges for affordability.

Detached homes, for example, have seen a decline in sales, with only 79 units sold. However, the average price for detached homes has increased to $1,534,410, indicating that buyers willing to act quickly may still find value in this segment. Given that detached homes are now taking an average of 26 days to sell, it's crucial for buyers to be prepared to make quick decisions and have their financing in order.

A Seller’s Perspective

For sellers, the Burlington market offers a unique opportunity. The increase in average sale prices indicates that despite the decline in sales, there is still significant value in the market. The average price of detached homes, for instance, has risen by 8%, which can motivate sellers to list their properties now while the market remains favourable.

However, sellers should be mindful of the increasing inventory levels. With 643 active listings, positioning their homes competitively is vital. This includes setting realistic prices based on recent sales data and ensuring properties are presented well to attract potential buyers.

Commentary on Property Types

1. Detached Homes: The market for detached homes is showing some strain with a 6% decline in sales compared to last year. While prices have increased to an average of $1,534,410, the longer selling period of 26 days highlights a more cautious buyer pool. The increased inventory of 285 detached homes suggests that sellers may need to market their homes strategically to stand out.

2. Townhomes: The freehold townhome market has also seen fluctuations. With an average sale price of $1,045,832, up from $993,941 last year, this segment remains attractive. However, sales have sharply declined to just 6 units from 22 last year, indicating potential oversupply or changing buyer preferences. Active listings are at 33, providing buyers with limited choices.

3. Condos: The condo market appears stable, with an average price of $742,000, a significant increase from $662,000 last year. Sales have remained steady at 38 units, and the month-end active listings have surged to 209, compared to 95 last year. This suggests a growing interest in condo living, likely driven by first-time buyers and those looking for more affordable options in a challenging market.

Conclusion

In conclusion, the Burlington real estate market in August 2024 showcases a complex landscape for both buyers and sellers. While total sales have declined, rising average prices and increasing inventory levels present unique opportunities. Buyers should act strategically and be prepared to navigate a competitive market, while sellers can benefit from favourable pricing trends by effectively positioning their homes. By staying informed and responsive to market dynamics, both buyers and sellers can make informed decisions that align with their real estate goals.

Roshan Basnet is a seasoned real estate broker with extensive experience in the Oakville and Burlington markets. Known for his personalized approach and deep market knowledge, Roshan is dedicated to helping clients make informed decisions and achieve their real estate goals. Whether buying or selling, working with Roshan means partnering with a trusted expert who ensures a smooth and successful real estate journey.