Low Inventory Leading to the Increase of Housing Prices in Oakville
A recent report revealed that Burlington is a pretty pricey place for renters. The city came in ninth on a list of 33 cities for the priciest average monthly rent for a one-bedroom at $1,789, and a two-bedroom at $2,041.
Now, a recent news release from Royal LePage Real Estate Services has revealed that low inventory is leading to the increase of housing prices in Oakville.
But first, Royal LePage revealed some statistics about the GTA in general that may not come as much of a shock.
According to the news release, the aggregate price of a home in the GTA increased by 2.6 per cent year-over-year to $841,729 in the second quarter of 2019.
However, when it came to the median price of a two-storey home and bungalow in the GTA, prices increased by 1.7 per cent and 1.6 per cent year-over-year, to $970,772 and $809,648 in the same timeframe.
And although this may seem a little daunting for anyone who plans on purchasing within the GTA, there is some good news.
“Home buyers’ showed [a] healthy interest in homes under the one-million-dollar mark, which drove the market in the GTA and led to more active unit sales in some areas during the second quarter of the year,” reads the release. “While downtowners encountered a seller’s market, homebuyers in the northern parts of the GTA witnessed a buyer’s market, putting the region’s market in balanced territory.”
In addition, a large portion of markets within the GTA saw single-digit value increases across all housing types. However, there were some exceptions. When it comes to Oakville specifically, there was a single-digit decline of 5.5 per cent on a year-over-year basis.
The release also notes, “Low inventory drove the aggregate home price in Oakville to a healthy increase in the second quarter, rising 3.4 per cent to $1,103,200.” The median price of a two-storey home, according to the release, increased 4.8 per cent to$1,196,724.
So, what does the future hold for the GTA real estate market?
Well, Royal LePage expects national home prices to see a modest uptick by the end of the year, rising 0.4 per cent compared to the end of 2018.
Are you surprised by these numbers?