Condo Apartments Lead June Market Results: Halton

By: Dana Gain

Condo Apartments Lead June Market Results: Halton

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Most everyone is paying attention to the real estate market this year.
 
Buyers are monitoring trends in the hopes the market will slow. Sellers are getting their homes ready to list. First time homebuyers are sweating it out, as they watch and wait for things to calm down. And former homeowners, currently divested of their real estate holdings, watch with rapt attention waiting for the right moment to jump back in.
 
Unfortunately, June results may not provide much in the way of clarity. In fact, they continue to perplex. Let’s have a look at what happened in Halton region during the month of June.
 
Halton Region
 
A few trends surfaced in Halton during the month of June.
 
First, we saw a 20% slowdown in speed of sale compared with the prior month. May 2021 saw an average of 10 days on market, but by June this had slowed to 12 days across all home styles, which is the slowest speed of sale we’ve seen for a few months.
 
Second, in terms of average sale price there were some clear winners and losers in June.

The most notable market segment standouts for Halton were detached houses and condo apartments. 

Detached homes in Halton showed a 3% increase in average sale price during June compared to May, 2021. The average sale price of a detached home in Halton region was $1.56M during June, as compared with $1.52M in May of this year.
 
Condo apartments showed an impressive increase in average sale price compared with May: 11.2%. This resulted from an average sale price lift of condo apartments from $615,000 in May to $684,000 in June, 2021. 

“We have seen market activity transition from
a record pace to a robust pace
over the last three months,”
said TRREB President Kevin Crigger.

Most noticeable for this trend was in Burlington, with condo apartments increasing in price by 19.1% since the prior month. The condo apartment price average in June was a striking $698,000 compared with just $588,000 in May.

Semi-detached homes showed very little change from the May 2021 data, demonstrating a similar speed of sale and slightly under $1M average sale price. 
 
Condo townhouses lost ground in Halton region during June. The average selling price for a condo townhouse in May 2021 was $805,000. By June this had dropped to $774,000, a 4% decrease month over month.

Both Oakville and Milton showed relatively consistent results in June compared with May. There was very little movement in terms of pricing or days on market for these areas. 
 
Detached home prices were relatively flat in June compared to May, with an average price of $1.87M in Oakville and $1.3M in Milton. Overall, Milton showed very little change in any of the home styles during the month of June, compared to May.
 
However, Oakville experienced some interesting segment-specific shifts.
 
Semi-detached homes lost 3% in average sale price between May and June. Semis in Oakville were selling for $1.18M during May, while those sold in June fetched only $1.14M. Condo townhouses in Oakville also lost ground during the month. Condo townhomes that sold for $958,000 during May only brought in $817,000 in June, a substantial drop of almost 15%.
 
Conclusions
 
Overall results in Halton region during June indicate that the pace of the market has indeed slowed in the past month. This is now the third month in a row to experience a minor shift downwards.

Interestingly, specific market segments are showing dramatic shifts while other home styles are maintaining similar pace and pricing as the prior months. For example, condo apartments in Burlington showed a huge jump in interest, as evidenced in the dramatically increasing sale price over the past 30 days. Condo townhouses in Burlington also saw some appreciation during the month of June.
 
We are seeing mixed results in the other housing styles, however. Detached homes in Burlington showed slight price increases, while those in Milton and Oakville demonstrated minor downtrends. Semi-detached properties saw a very slim average price increase in Burlington, there was no effective change in Milton, and just a moderate drop in Oakville average pricing.

Condo townhomes in Milton saw no change from May’s results, while Oakville saw a precipitous drop in interest for this segment.

While June’s market results may appear to be all over the place in terms of trend, the resulting drop in pace and average selling price for this time of year is in fact consistent with prior years. Further, the average selling price for June 2021 is still well ahead of June 2020 results – by robust double digits.

Perhaps the most interesting and significant takeaway from June is how well condo apartments performed. In all areas of Halton, condo apartments showed an increase in average sale price between 2-19%, averaging 11.2% for Halton region overall. This is in alignment with condo apartment trends in the GTA as well.
 
This is welcome news for condo apartment owners who watched their property investment falter during a good portion of 2020 and the early days of 2021.
 
In summary, “we have seen market activity transition from a record pace to a robust pace over the last three months,” said TRREB President Kevin Crigger. “While this could provide some relief for homebuyers in the near term,” he continued, “a resumption of population growth based on immigration is only months away."
 
“While the primary focus of policymakers has been artificially curbing demand,” said Crigger, “the only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region.” (TRREB, 2021).***
 
References:
Regional Housing Market Tables. Halton Region. June 2021.
Regional Housing Market Tables. Halton Region. May 2021.

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