How is Oakville's Housing Market?
Oakville is a magnificent lakeside town and part of the
Greater Toronto Area.
This historic town is famous for its arts, vibrant communities, good schools, spectacular harbors and great restaurants.
Oakville has over 182,000 residents. It has the best weather in Canada thereby attracting a great number of visitors.
If you are looking to buy or sell a home in Oakville, you may want to enlist the services of a REMAX agent. They are connected to a network of agents who may have the ideal properties you want or potential buyers.
Ensure that the agent is an expert in dealing with the type of property you’re selling or buying. Their expertise may help you get the best deals and save you some bucks. Oakville’s housing market has remained strong for some time.
Oakville Real Estate Market
Most people looking to buy or sell property in Oakville are likely to ask about trends in the housing market. There are various factors that influence housing market and house price.
The demand for housing is determined by income. An increase in economic growth will lead to a rise in peoples’ incomes thus enabling them to spend more on houses. This will increase the demand for houses and push up the prices. Normally, housing demand is considered as income elastic; an increase in income will lead to a larger percentage being spent on housing. A decrease in income level means that people can’t afford to buy homes. Those who are paying mortgages won’t afford to keep up with the mortgage payments and may have their homes repossessed.
Interest rates determine the amount of monthly mortgage payments you’ll pay. Higher interest rates will cause an increase in the cost of mortgage payments thus leading to a decrease in the demand for houses. When the interest rates are high, most people prefer to pay rent. The high interest rate is even worse for homeowners who have large variable mortgages.
In April 2014, the Bank of Canada advertised a 5 year lending rate of 4.99% down from 5.24% at the previous bank announcement on March 2014. The bank made it clear that it would not raise the interest rates sooner than anticipated. This led to an increase in the number of property sales in April. In a report released by OMDREB, the number of properties sold increased by 3.2% compared to the same period in the previous year.
The ease of obtaining mortgages will increase the demand for houses. If banks ask for bigger deposits to buy a house, they reduce the availability of mortgages thus leading to a decrease in the demand for houses. Oakville’s mortgage rates have remained low for some time and experts suggest that this may be the best time to apply for a mortgage, refinance or renew your loan.
If people are confident that the house prices will rise, they’ll take the risk of obtaining a mortgage. If they fear that prices will decrease, they will not buy and demand will decrease.
If the supply of houses is greater than the demand, the prices will fall.
When the demand for houses is more than the supply, prices are likely to increase. This is true according to a report released by Oakville Milton District Real Estate Board. In March 2014, the number of residential houses available for sale reduced to 246 from 265 recorded in the previous year. This caused 7.96% increase in average price from $780,592 in 2013 to $842,748 in 2014.
A property’s value may vary depending on its physical location. For example, you cannot expect to sell an apartment in a rural area at the same price as an apartment in the city. Most buyers are likely to look at the property’s view; a property with a great view will cost more than that with a blocked view.
In a report released by The Globe, foreign buyers in Oakville are attracted to waterfront properties and the availability of good schools. They are also ready to pay up to $3 million for a property. People will buy a house that can be sold after a few years; no one would want to stick with a house that is difficult to sell.