The following article appeared in the The Real Estate Book | October 2017
It has been quite a roller coaster so far this year in the real estate market in Burlington. We started out exceptionally strong, carrying on from 2016 but with even stronger price appreciation and lack of inventory in the first quarter.
But there has definitely been a cooling off period in the last few months. The number of sales has been declining since March, and there were only 325 closed transactions in June 2017 compared to 649 in 2015 and 466 in 2016.
At the same time, we have finally seen a higher number of listings coming on to the market, probably tempted by the opportunity to take advantage of higher prices. Through most of 2016 and especially in the first quarter of 2017, the number of homes available for sale was less than half what is typical in Burlington. For example, at the end of March there were only 315 active listings, compared to 854 in 2015 and 468 in 2016. A balanced market in Burlington normally has between 500 and 700 active listings, and it appears we are back into this range again now.
So what about prices? Again, things seem to be moderating compared to the crazy price gains of the early part of the year. Burlington has historically been a very recession proof market, and the long terms trends have seen house prices go up by 5% to 6% per year. By the end of June, we were getting closer to these historical norms.
So what does this mean for local home buyers and sellers? Firstly, with a more balanced market and plenty of supply, agents have to work harder to sell listings. Buyers have more choice again, and they can safely present offers with the more typical conditions to safeguard their best interests. And sellers will need to moderate their price expectations, and recognize that they may not be able to achieve the valuations that we saw at the peak of this market in March.
As a team of professional realtors, we welcome a more balanced market, and look forward to more typical conditions in the second half of this year.
All Data From The Realtors’ Association of Hamilton-Burlington
Karen Paul & Associates | Real Estate
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