Oakville, Burlington home prices expected to rise in 2020
Both Oakville and the Burlington-Hamilton area can expect an increase in the cost of homes for 2020. While both buyers and sellers can expect to come out on top, depending on the market, according to the RE/MAX Canadian housing market outlook for 2020.
RE/MAX is forecasting continuing balanced conditions for the Oakville housing market in 2020, due in part to no economic changes. The average residential sale price is expected to rise by five per cent. The anticipated price increase is being attributed to low inventory and a strong buyer pool in the region.
“Oakville’s luxury housing market continues to thrive, with home sales being propelled by move-up and out-of-area buyers,” according to RE/MAX. “Growth of this property segment is expected to continue in 2020 due to the high liveability of the region and the continuing trend of migration from urban city centres such as Toronto, into suburban cities like Oakville.”
Currently, there are three months of inventory in the Oakville housing market, but as we move into 2020 this should increase, according to RE/MAX.
Move-up homebuyers will continue to drive demand for homes in 2020, according to the report; while there is no single “hot neighbourhood” in Oakville that is selling faster than others. This market consistency is expected to continue in 2020.
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
The Hamilton-Burlington housing market will favour sellers in 2020, with an average residential sale price increase of 3.8 per cent anticipated for the region next year, in line with historical price appreciation, according to RE/MAX.
The report indicates that Hamilton-Burlington is currently experiencing a seller’s market, with 1.9 months of inventory in Hamilton and 1.6 months of inventory in Burlington. Buyers have adjusted to the mortgage stress test and have found other ways to finance home purchases, such as through private lenders as opposed to banks.
“There is currently a development freeze in downtown Burlington that could delay future development in the area even further if it is not lifted,” according to RE/MAX. “The industrial sector in Hamilton has picked back up and the economy is expected to be impacted positively in the coming year. Move-over buyers from the GTA who are looking for more space are driving the market.”
The report suggests that increased GO Train service and higher levels of affordability in the region compared to the GTA are the most influential factors that will impact the Hamilton-Burlington housing market in 2020. Move-over buyers are expected to drive demand in 2020, in particular, moving from the GTA in search of more affordable properties.
The hottest neighbourhoods in Hamilton for 2020 include Leckie Park, Waterdown West, and Fifty Point. In Burlington, in-demand neighbourhoods include Brant Hills, Central, and The Orchard, according to RE/MAX.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the 2020 Housing Market Outlook Report.
Other findings in the report show that most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).