While the story of the provincial housing shortage is not new, the month of January gave this trend even more altitude.
Unsuccessful buyers who started their home search last summer or fall evidently came into the new year still on the hunt. These shoppers seemed more determined than ever to buy their home.
At the same time, winter is a historically less popular time of year for homeowners to sell. It seems home sellers saw no reason to change their strategy in 2022. As a result, a scarcity in new listings combined with intense, accumulated demand drove home prices up more quickly than what we saw even during 2021.
For REALTORS® too, the pace of home sales made it more difficult to predict prices in January. Most rely on comparable, recent sales in the neighbourhood to provide a benchmark for a sale price. With homes rising in value so quickly during January, week over week, comparable homes that sold in November and December no longer held much predictive value.
Let’s take a look at what transpired in Halton region during the very exciting month of January, 2022.
In the detached category, Oakville was the district with the fastest-growing price during January.
The average price of a detached home in Oakville during the month was $2,498,268 compared with the $2.1M seen during December 2021, an increase of 17% in that short period.
Next up was Burlington, showing a 12.5% increase in average selling price for detached properties during January. The average selling price in Burlington last month was $1.8M compared to December's $1.6M.
Last in line was Milton, with an average detached selling price of $1,563,365 during January, an actual decrease of 11.9% compared with December's $1.7M. We will soon see that the buyer's market shifted away from detached and towards semi's and towns in Milton during January as the detached price became more prohibitive.
This home style gathered momentum in all 3 key areas of Halton region during January.
Burlington showed the highest increase at 15.9%, where the average price of a semi was $1.26M during the month. December's average price for a semi was just $1.09M.
Milton was next in line with a 13.3% semi-detached increase since December, with an average price of $1.29M compared with December's $1.15M.
Oakville showed the slowest price growth during January with 8.3%, however the average price in this district nonetheless grew by greater than $100,000 over the month. January's average semi-detached home price in Oakville was $1.43M, compared with December's $1.32M.
Milton was the winner for the highest sales increase during January, boasting a 15% bump compared to the prior month. January's average price for freehold townhouse was $1.15M compared with December's $1M.
Oakville and Burlington showed similar increases during January at 8.7% and 7.8%, respectively. The average price in Oakville during January was $1.44M compared to $1.32M in December. Burlington's average price for a freehold town during the month was $1.23M compared to $1.14M in December.
Oakville demonstrated a remarkable 28.5% increase during January for condo townhomes. The average price for this housing style was $1.08M during the month compared with December's mere $840,000.
Milton also showed strong growth in this segment with a 15% average price increase compared with the prior month. Condo towns in Milton had an average selling price of $892,000 during January compared with December's $776,000.
Burlington was less popular for this segment during the month showing a slight 1.6% increase compared to the prior month - basically flat. The average price of a condo town in Burlington during January was $930,000 versus December's $915,000.
Side note: Many home buyers steer away from condo townhouses because of the condo fees. However, these same buyers are largely unaware of the price differential between the two housing styles.
In Halton region, like most areas, the price difference between freehold and condo towns is significant. During January, for example, it cost homebuyers 29.6% more to own a freehold townhouse whose average price during the month was $1.25M. Condo towns on the other hand remained relatively budget-friendly in the high 900's.
The single largest pricing increase for condo apartments during January was in Burlington at jolting 18.4%. The average price during the month was $796,000 compared with December's $672,000, an increase of over $120,000 in a single month. Quite a striking difference, perhaps causing sticker shock to condo buyers searching in Burlington.
Next in line was Oakville with a 12.1% increase compared to the prior month. The average price of a condo apartment in Oakville during January was $839,000 compared to the more moderate $748,000 during December.
That said, condo apartment hunters may find Milton to be an untapped opportunity. This region showed a 6.5% increase in average price compared to the prior month. The average price of a condo apartment in Milton was $709,000 during January compared with $666,000 during December.
The data seems to show that price increases were highly dependent on the housing style buyers were searching for in January.
Evident across all home styles were the significant price increases in all regions of Halton during the month. The only exception was the decrease in average price we saw in Milton during January for detached homes. That said, we also saw notable upticks in prices of all other home styles in Milton, suggesting that buyers were leaning more towards the less-expensive properties during the month.
In the final week of January, we did see anecdotal evidence of a spike in new home listings. As home sellers realize they don't need to wait to sell and more properties come on the market, the rapid increases in home prices should begin to stabilize as we edge closer to spring.
Remember that there is help out there for home buyers. Reach out to us today for guidance on your home buying experience.***
Toronto Regional Real Estate Board (2022). Market Watch, January 2022. GTA REALTORS® Release January Stats.
Toronto Regional Real Estate Board (2020). Market Watch, December 2021. GTA REALTORS® Release December Stats.