Oakville, Ontario Real Estate Market Report - July 2024

Market Overview: In July 2024, Oakville's real estate market exhibited signs of stability with a total of 184 property sales, a modest 3% increase from July 2023. While the average sale price dipped slightly, the market is characterized by increased inventory, longer days on the market, and competitive pricing dynamics.

Sales and Pricing Insights: 

• Total Sales: The market saw 184 total sales, up 3% from last year, indicating consistent demand in Oakville despite economic headwinds.
• Average Sale Price: The average sale price across all property types was $1.5 million, reflecting a 4% decrease from the previous year. This suggests some price adjustment as the market responds to increased inventory and buyer expectations.
• Average Days on Market (DOM): Homes spent an average of 28 days on the market, slightly above the 20-day average from June, hinting at more cautious buyer behaviour or increased negotiation time.

Detached Homes:

• Sales and Listings: There were 87 detached home sales, a 7% increase compared to last year, but with a substantial number of active listings (478) and a total of 273 new listings for the month, the market shows signs of increased competition among sellers.
• Average Price: The average price for detached homes was $2 million, down 5% year-over-year.
• Days on Market: Detached homes took an average of 27 days to sell, which is consistent with the overall market but indicates that buyers are taking their time to evaluate options. 
• Active Listings: The high number of active listings suggests that sellers may need to adjust pricing expectations or enhance property appeal to attract buyers in this competitive segment.

Semi-Detached Homes:

• Average Price: The average price for semi-detached homes was $1.05 million, down 7% from July 2023. The decline in pricing may reflect a buyer's market, where increased inventory is putting pressure on sellers to negotiate.

Freehold Townhomes:

• Average Price: Freehold townhomes bucked the trend with a 7% increase in average sale price, reaching $1.25 million. This segment remains in high demand, likely driven by buyers seeking a balance between space and affordability.

Condominiums:

• Average Price: Condo prices rose by 5% to $862,000. The condominium market continues to attract both first-time buyers and investors, maintaining steady price appreciation.

Market Dynamics:

• New Listings: A significant increase in new listings, up 40% to 599, indicates more sellers entering the market, possibly driven by favourable selling conditions earlier in the year or anticipation of market softening.
• Sale to List Price Ratio: The average sale price to list price ratio was 96%, suggesting that while homes are selling, many are doing so below the asking price. This is a clear signal of a market where buyers have some leverage in negotiations.

Active Listings and Inventory:

• Active Listings: With 971 active listings at the end of July, the market is experiencing a higher level of inventory compared to previous months. This elevated supply offers buyers more choices but also means sellers might face longer selling times and more price competition.

What This Means for Buyers:

For buyers, the current market conditions in Oakville present a mix of opportunities. The slight decline in average prices, particularly in detached and semi-detached homes, provides the potential for negotiating favourable deals. The increase in inventory and longer days on the market give buyers more time to make informed decisions. However, the competitive nature of the townhome and condo markets means that buyers should still be prepared to act quickly in these segments.

What This Means for Sellers:

Sellers should be aware that while the market remains active, the significant increase in listings means more competition. Proper pricing is crucial to attract offers, as evidenced by the 96% sale-to-list price ratio. Homes that are priced competitively and presented well will have the best chance of selling quickly, especially in the townhome and condo markets where demand remains strong. Detached home sellers may need to adjust their expectations, given the higher inventory and slight price softening in this segment.

Roshan Basnet is a dedicated real estate professional with a deep-rooted passion for helping clients navigate the Burlington real estate market. With a wealth of experience and an in-depth understanding of local market trends, Roshan provides unparalleled insights and guidance to both buyers and sellers. Known for a client-centric approach, Roshan combines expert market analysis with a personalized touch, ensuring each transaction is seamless and successful. Whether you're looking to find your dream home or achieve the best value for your property, Roshan's commitment to excellence and integrity makes all the difference.