More homes, more buyers, more sales as real estate market strong in Oakville, Burlington, Milton

A drop in interest rates meant a more active real estate market in Oakville, Burlington, Milton and Halton Hills last month.

Following the Bank of Canada’s third interest rate cut in early September, lowering rates by 25 basis points to 4.25 per cent, the GTA real estate market as a whole saw a notable shift according to the latest data from the Toronto Regional Real Estate Board.

A surge in new listings gave buyers increased options and more substantial negotiating power. While home sales remained steady compared to August, the rise in available properties and longer time on the market allowed buyers to take a more thoughtful approach, creating one of the most balanced markets in recent months.

Total home sales across the GTA reached 4,996, up 8.5 per cent from last year and just ahead of August’s 4,975 transactions year-over-year.

“The annual improvement in September home sales was more than matched by the increase in new listings over the same period,” said Jason Mercer, the board’s chief market analyst.

“This resulted in a better-supplied market and increased negotiating power for buyers re-entering the market. The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular with first-time buyers,”

Sellers in Halton Region were highly active last month, with new listings increasing by 37.9 per cent month-over-month, rising from 1,275 in August to 1,758 in September. This helped push months of inventory to three for the first time this year. This is a huge improvement considering Halton Region started the year with just 2.2 months of inventory.

The largest inventory gains came from Oakville and Burlington, with month-over-month new listing increases of 51.6 per cent and 33 per cent, respectively. Halton Hills and Milton also experienced strong growth, with new listings rising by 29.4 per cent and 24.5 per cent, respectively.

Buyers were also more active last month, with Halton Region sales increasing month-over-month by 3.3 per cent. Burlington led the way with an 8.3 per cent rise in sales, followed by Halton Hills at 7.7 per cent, and Oakville with a 2.2 per cent increase. Milton was the only city in Halton Region to see a decline, with sales dropping by 3.1 per cent.

As a result of the heightened activity, the average home price in Halton Region rose by 3.1 per cent month-over-month, reaching $1,255,112.

Oakville saw the largest increase, with its average home price jumping 10.8 per cent to $1,585,452, while prices in other cities within Halton Region either declined or remained unchanged from the previous month. Notably, Milton’s average home price decreased month-over-month by four per cent to $1,021,471.

As the market evolves, changes to mortgage lending guidelines are expected to offer more flexibility for homebuyers.

“We are pleased with the positive changes to mortgage lending guidelines announced over the past month,” said TRREB CEO John DiMichele.

“The ability for existing mortgage holders to shop around for the best rate without facing the stress test will result in more affordable renewals. Longer amortization periods and the ability to insure mortgages for purchases over $1 million dollars will give home buyers more options as the GTA housing market recovers.”