Oakville could shift from seller’s market in 2021, prices expected to rise 5%
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.
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 priceto approximately $1,227,941 across all property types.
Oakville currently has two to three months of housing inventory available.
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:
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.”
RE/MAX is forecasting continuing balanced conditions for the Oakville housing market in 2020, which is expected to prevail in 2020 due 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.
Currently there are three months of inventory in the Oakville housing market, but as we move into 2020 this should increase.
Move-up homebuyers will continue to drive demand for homes in 2020. There is no single “hot neighbourhood” in Oakville that is selling faster than others. This market consistency is expected to continue in 2020.
Oakville’s luxury housing market continues to thrive, with home sales being propelled by move-up and out-of-area buyers. 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.
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, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
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).
“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.”
Lydia McNutt is an award-winning editor, with more than two decades of experience specializing in Canadian real estate. At RE/MAX, Lydia is responsible for developing consumer-facing content while promoting the RE/MAX brand through housing market reports and market news, as featured on the RE/MAX Canada blog and social media channels. Lydia has been published nationally on topics ranging from real estate, architecture, decor and design, to finance, business, technology, entertainment and lifestyle. When she’s not head-down at her writing desk, Lydia is busy “momming” in Oakville, Ontario, where she lives with her husband, two kids and their chocolate lab, Betty. Email Lydia at email@example.com