While a single month of numbers does not exactly qualify as trendsetting, April did bring some curious results for the Halton real estate market.
Let’s take a look at how April 2021 compares with March of this year in Halton Region in terms of average selling price, days on market, and sale to list ratio. We will also review how April stats compared with April of 2020.
The average sale price across all home styles in Milton was $1.04M in April 2021 and showed no noticeable change when compared to March in either days on market or average price paid over asking.
Interestingly, while the average selling price in Milton in March 2021 was $1.03M, this slight increase of almost 1% in sale price compared with April’s $1.04M does not provide too much information in terms of what’s going on in the market.
The story begins to unfold when you start to dig into the housing styles.
Average selling price for detached homes in April 2021 for this region came in at $1.35M, a 2% increase over the average selling price in March.
As the price increased for detached homes during April, we also saw a corresponding increase in the time of sale. Detached homes in April took 3 days longer to sell than they did in March, increasing from 7 to 10 days average sale time.
At the same time, we saw no difference in what consumers were prepared to pay over asking price for detached homes in Milton, maintaining the 106% average paid over list price in March.
The data is in marked contrast with semi-detached and townhouse.
Semi-detached homes in Milton during the month of April showed an average selling price of $957,000, while March 2021 numbers were slightly higher: $990K. The data shows that the price of semi-detached homes in Milton during April actually dropped by just over 3%.
The time to sell a semi-detached home during April increased by one day, taking 6 days to sell in April versus the 5 day pace in March.
At the same time, while pricing for semi-detached homes dropped and the speed of sale increased, the amount consumers were paying over asking price dipped slightly in April as well. The average list to sale price ratio in April was 107% over asking price, while March demonstrated 109% paid over list.
Townhomes fared slightly better. Average selling price for a townhouse in Milton was $859K during April and $866 during March, a very minor drop of just under 1%. The speed of sale for townhomes maintained the same pace in April as it had in March, 7 days on market. Further, there was no change in the sale to list ratio for towns in April, maintaining the 108% average seen in March.
Overall, Milton numbers seem to indicate a slight cooling in Milton in terms of demand for semi-detached and townhomes, while the demand for the fully detached housing style appeared to strengthen.
For the most part, this region tells a very different story in terms of consumer preference and direction.
That said, detached homes continued their popularity in Oakville as well during the month of April.
The average selling price for a detached home in Oakville came in at just under $1.89M during the month of April as compared with the $1.87M seen during March, an increase of just over 1% in a single month.
Speed of sale increased as well. Time to sell detached homes during April decreased by 2 days relative to March, selling in just 10 days in April compared with 12 in March. Also, consumers demonstrated a willingness to continue paying 104% over list price which was identical to March data.
That said, the trend between semi-detached and townhouse seemed to shift in April in this region.
Semi-detached homes sold for an average of $1.15M during the month of April, up a full 3% compared to the $1.12 average price seen in March. Along with a higher sale price, the speed of sale decreased by 2 days from one month to the next, with semi-detached homes selling in 7 days during April compared with 5 days during March.
Most notable for semi-detached homes was sale versus list price. In March, consumers paid an average of 114% of list price, while in April this dropped by a full 8% down to a more manageable 106%.
So, while consumers were still prepared to pay higher prices in April for semi-detached properties, they were taking slightly longer to decide and were prepared to pay significantly less over asking price compared with the prior month.
Townhomes in Oakville saw a different trajectory, dropping in demand across all metrics.
Average selling price for towns in Oakville during April was $1.08M compared with $1.18 in March, a significant drop - just over 8%. Time to sell towns during that month increased by 2 days, from 7 days in March to 9 days in April.
It also appeared that consumers were less willing to go too far over asking price for townhomes in Oakville during April. List to sale price ratio went from 108% in March to 104% in April, a drop of 4% over asking price. Considering the average sale price of over $1M, this represents a $40,000 shift.
Compared With April 2020?
This time last year with the uncertainty of covid, the real estate market did pause slightly to reset. Since this occurred in April and the early part of May before numbers started to rebound, it’s important to mitigate the April versus April comparison by keeping this in mind.
That said, the numbers are quite noticeable.
On average, Milton home prices in April 2021 were 29% higher than April 2020. Among home styles, detached homes showed the highest increase. Detached properties in that region that sold for $868,000 last year sold for $1.34M in April 2021 – a 55% increase.
Semi-detached sold for $738,000 last April 2020, and $957,000 in April 2021 – a 29% increase. Townhomes also saw a noticeable uptick. Towns in that sold for $706,000 this time last year sold for $859,000 in April 2021 – a 21% increase.
How did Oakville fare?
There was an average increase of 30% across all home styles between April 2020 and April 2021. Like Milton, Oakville detached properties fetched the highest increase, 35%. A detached home in Oakville in April 2020 that sold for $1.4M went for $1.89M in April 2021. When you’re talking numbers this large, that is a significant shift.
Semi's in Oakville also did well with a 27% increase compared to same time last year. Oakville semi-detached homes that sold for $906,000 last April fetched $1.15M last month. Townhomes did similarly well showing a 25% increase year over year, with the average price moving from April 2020’s $860,000 to $1.08M.
Our conclusions for the month of April are first, that demand remains relatively constant compared with March with the slightest of pullbacks. Second, the percentage changes in average selling price, days on market, and speed of sale are for the most part too modest to indicate a trend but do tend to suggest the market has cooled slightly since March.
Third, home prices in both regions have increased by an average of 30% compared with April 2020.
Let's see what happens in May!***
Toronto Regional Real Estate Board (2021). GTA REALTORS® RELEASE MARCH 2021 STATS
Toronto Regional Real Estate Board (2021). GTA REALTORS® RELEASE APRIL 2021 STATS
Toronto Regional Real Estate Board (2021). GTA REALTORS® RELEASE APRIL 2020 STATS
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