Oakville real estate could shift from seller’s market in 2021
The Oakville housing market has seen average residential prices rise and inventory dwindle in 2020, which has been a common trend across many Ontario housing markets, resulting in rising prices. But Oakville homebuyers could be in for some relief, with the current seller’s market potentially beginning to transition into more balanced territory in 2021.
Oakville House prices expected to rise 5%
The region saw average home prices rise to $1,169,468 in 2020 (Jan. 1-Oct. 31) compared to $1,026,539 in 2019 (Jan. 1-Dec. 31). Low inventory is expected to be a major concern that will continue to have a direct impact on home availability and prices next year. Furthermore, low interest rates expected to hold steady in 2021 are likely to keep buyer demand high. Thus, the RE/MAX outlook for the Oakville housing market is an increase of 5% in average price to approximately $1,227,941 across all property types.
Oakville currently has two to three months of housing inventory available.
Who’s driving the Oakville housing market?
After a year of supply challenges, move-up buyers are expected to drive the market in 2021, pushing up prices. In 2020, home-buying hesitation was not particularly relevant despite economic challenges, with first-time homebuyers continuing to move ahead with purchases, predominantly condos in the $400,000 to $600,000 price range. Oakville’s condominium market moved at the same sale and purchase pace as detached homes, and this is expected to continue in 2021. This is in contrast to the dip in condo activity experienced in neighbouring Mississauga, and even more pronounced in downtown Toronto.
Meanwhile, the luxury market was not significantly impacted by the pandemic, driven by move-up buyers and starting at $3 million. Activity is expected to continue at its current pace in 2021.
The hottest neighbourhoods in Oakville, based on 2020 sales, are Glen Abbey, River Oaks and South East Oakville. Properties in highest demand include condominiums, two-story detached homes, townhomes and luxury properties – a wide range of housing types that speaks to the high demand for housing in the area.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”