Despite some softening in the top end of Oakville’s luxury market in 2018, it took considerably less time to sell a home over the $3-million price point in the first two months of the year. The six properties that changed hands so far in 2018 spent an average of 24 days on market, down from 42 days in 2017 and 70 days in 2016. Fifteen homes were sold between January 1 and February 28 in 2017, while seven moved during the same period in Oakville in 2016.
With strong demand from local buyers and an adequate supply of inventory, Oakville’s luxury homes are well-positioned for the advent of the traditional spring market. Economic fundamentals remain solid, confidence is climbing, and call volumes to real estate offices are on the upswing.
Southeast Oakville remains the most coveted, with the area located east of downtown and north of the lake seeing the greatest home-buying activity at the $3-million-plus price point. Infill continues unabated, with buyers more than willing to fork over $1.5 plus for a generous lot size. Sales in the southeast tend to involve move-up buyers relocating from communities north of the QEW, such as Joshua Creek. The Coronation Park area is also an up and coming luxury market.
Currently, 44 homes over the $3-million price point are listed for sale in Oakville. Of this number, 18 have asking prices over $5 million. The city’s most expensive property is an 11,000-sq.-ft. estate on a one-acre lot listed at $17.9 million. While most 2018 luxury sales occurred between $3 and $4 million, there were two sales over $5 million in February. The priciest sale year to date was a manor in Eastlake, at $6.3 million.
While 2018 may be off to a slower start, there should be a notable shift in home-buying activity in late spring and early summer. Luxury sales are expected to climb, with the total number of homes sold over the $3-million price point falling between 36 and 48 (representing between three and four sales a month) at year-end. The average price of luxury homes is forecast to experience a modest increase over 2017 levels.
About RE/MAX and the Luxury Market:
RE/MAX sells more luxury property over the $5 million price point than any other real estate company in the Greater Toronto Area. Between January 1 and December 31, 2017, RE/MAX participated in 96 residential transactions, almost double that of their closest competitor.