Lack of Inventory Frustrates Buyers in December

By: Dana Gain

Lack of Inventory Frustrates Buyers in December

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The market is moving quickly and buyers are frustrated. Given the speed of the market and how rapidly things seem to be changing, we wanted to know: how much have homes gone up in value in just the past 3 months?
As one buyer put it, "How are we supposed to properly budget when the price can change so quickly?"

Looking at the past three months may be helpful to house hunters who started shopping in September. With pricing constantly on the move, buyers will want to understand what adjustments will be necessary to their budget or wish list since they started shopping 3 months ago.

In doing so, buyers can put themselves in the best possible position to compete now.
As we compare December 2021 results with September, a few trends surfaced in Halton Region in particular.
Trend #1: Detached Homes Value Grew the Fastest
The Halton regional average increase from September to December for detached homes was 13.8%. This is about three times more than the average across all Toronto municipalities. 
Milton showed the greatest increase of 25%, followed by Burlington at 16.4%, and Oakville at 8%.
Trend #2: Semi-Detached Homes A Close Second
The average increase in semi-detached home pricing in Halton region was 11.4% between September and December, 2021. Across all Toronto municipalities, this number was much lower, showing only a 6% increase.

In the case of semi-detached, Burlington came out the clear winner among Halton peers with an average price increase of 16.6%. Oakville followed with 12.8%, and Milton a moderate 4% increase.
Trend #3: Freehold Towns in Burlington Jumped in Price
Freehold townhomes are fully owned and come with no condo fees. As a result, they tend to be slightly more expensive than condo townhomes – which is why we have separated them for this report.

Halton’s average price increase for freehold towns was 9% between September and December 2021. This is in fact lower than the increase we saw across all Toronto municipalities at 11.8%.
That said, Halton maintained its strong performance in Burlington, showing a 20.6% price increase over those three months. Oakville did well also, demonstrating an 11.1% increase, with Milton trailing slightly behind at 6.3%.
Trend #4: Condo Towns Came Last
Condo townhomes increased in value by an average of 7.1% across all Toronto municipalities and just 3.7% in Halton.

Burlington was the frontrunner again with a 15.4% increase in condo town pricing between September and December, followed by Oakville at 9.6%, and Milton at 6.5%.
We noticed a few key things about the market results from this quarterly review.
First, Burlington is the hands-down favourite across all housing styles in Halton. This city showed the highest average price increases in 3 out of the 4 home types.
Second, detached homes continue to escalate in price even over short periods of time like across Q4 of 2021.

Third, we noticed that the pricing gap between condo and freehold townhouses seems to be growing. The average price for a freehold townhouse in Burlington in December 2021 was $1.14M compared with the $915,000 price tag of a condo town purchased there.

This can be useful information for buyers who are looking at townhouses in a more affordable price range.
It’s clear that like 2020, winter does not have to be synonymous with 'slow' in the real estate market. Trends we have seen for many years continue to shift out of focus in favour of what appears to be a tight and highly competitive market all year-round.
The good news is that there is help to be found. Reach out to us today to learn about how you can prepare for your next sale or purchase.***

Toronto Regional Real Estate Board (2021). Market Watch, December 2021. GTA REALTORS® Release December Stats.
Toronto Regional Real Estate Board (2020). Market Watch, September 2021. GTA REALTORS® Release September Stats.

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