The market for residential real estate in Oakville, an affluent community situated on the shores of Lake Ontario between Toronto and Hamilton, showed strong growth in 2014. The average residential sale price rose 12 per cent over the previous year, to approximately $800,000 in 2014 from $715,000 in 2013.
With less inventory on the market than in the previous year, days on the market fell from an average of 32 in 2013 to 27. Oakville’s residential real estate market is expected to remain robust in 2015, with the average sale price increasing by an estimated five per cent.
While Oakville remained a seller’s market in 2014, it began shifting to a more balanced market in the late summer and fall. Appropriately priced homes moved quickly and with competing offers, while homes priced above their market value were slow to sell. First-time homebuyersplay a very marginal role in driving this market, as most properties are comparably expensive.
What would be considered a luxury home in many communities across Canada is typical in Oakville. Entire neighborhoods comprise homes over 3,000 square feet outfitted with premium finishes like walk-in closets and chef ’s kitchens—and price tags around $1 million. The luxury market is driven by buyers who value the quality of the area’s schools, amenities and lakefront.
New Canadians from China are playing a growing role in the market as well, purchasing lakefront properties, some of which exceed $10 million. All signs point to continued strength in the Oakville market in 2015. While the number of listings is expected to remain consistent, a decrease in inventory is projected to result in an increase in the average residential sale price.
New construction in the north end of Oakville and a soon-to-be-completed hospital is expected to play a role in driving demand.