The average sale price in the Oakville housing market decreased by 4.1 per cent between 2022 and 2023 (from $1,760,869 in 2022 to $1,688,542 in 2023), while the number of sales transactions decreased by 13.8 per cent (from 1,404 in 2022 1,210 in 2023). Oakville is currently a seller’s market, with some experiencing more balanced conditions based on inventory levels. This is likely to continue into 2024. Oakville could expect to see a seven per cent increase in average residential prices and an increase of up to 14.5 per cent in the number of sales transactions by end of 2024.
The top three neighbourhoods likely to be the most desirable in Oakville next year are Bronte, Central, and Old Oakville. All three areas boast key liveability features such as GO train/transportation access, and proximity to shopping and waterfront areas, and all three areas score high for walkability. Walkability is identified as a core liveability factor desired by buyers in the region, especially coming out of the pandemic.
Lack of inventory is the core issue affecting the City’s housing market heading into 2024. Oakville’s five-month inventory is extremely low; however, unlike other regions in Canada, the city is not seeing the same widespread pressures on inventory due to immigration. If anything, the north of the city is sought after by newcomers, where there’s a greater density of affordable housing options like semi-detached homes, townhomes, and low-rise condos.
Likewise with the increased cost of borrowing and homes in the first-time buyer’s segment under $1M becoming scarce, first-time buyers are looking to alternative ways to buy in Oakville like co-ownership with family.
“If inventory levels continue to decrease throughout the winter, which, we’re anticipating it will, then prices will likely increase because of supply and demand. If you combine low inventory with softening of interest rates for variable and fixed mortgages as forecast for mid-2024, we could see prices increase,” says Lynn Hoffmann, Broker/Manager, Escarpment Realty Inc. “Consumers will feel confident to purchase, but they won’t have all the inventory they want. Given this, the market is expected to continue to trend as a seller’s market in 2024.”
- Oakville is likely to remain a seller’s market in 2024.
- Rising interest rates and inventory shortages are the top two trends impacting the market.
- While there aren’t currently many new construction developments, those that are underway are being delayed due rising borrowing costs, materials costs and overall materials shortages.
- Single-detached homes, particularly bungalows, are likely to see the greatest demand in 2024.
- Oakville’s luxury and move-up buyers are faring well in the market, despite rising interest rates and inventory shortages. Especially those looking within the $3M-$10M price range.
- To manage rising costs, many young buyers in Oakville are going-in on homes with family members or renting longer than expected.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.