By Staff
July 17th 2017
BURLINGTON, ON
It was great while it lasted for the sellers – the buyers might see these price drops quite a bit differently.
Burlington appears to have lost approximately 10-20% of residential property values when comparing June 2016 to June 2017, pretty much across the board.
There are a few communities that are down considerably more – Tyandaga, Mountainside, Orchard which makes sense as these were communities where property values swelled unsustainably, during the late spring months.
For the month of June, as compared to the same month in 2016, sales are down by 33% in Burlington and prices paid are on average 9% higher than in June 2016 which is still not too shabby an increase.
Several communities did not experience as dramatic a change as others. Aldershot, Plains, Longmoor all saw slight adjustments to average prices but nowhere near as dramatic as some. It remains to be seen if these communities soften further.
By the end of June, Burlington had close to 3-3 ½ months worth of inventory. This may sound like a lot but it is the number needed for a healthy, sustainable market. It’s good for buyers because they now have choices, they can do home inspections, and they can pay fair market value which is good for sellers too.
Some stunning changes in real estate prices
The data used is courtesy of the Rocca Sisters and Associates
Not the least bit concerned about the real estate market, Burlington’s selling prices year after year will continue to trend upward, and an adjustment here and there is normal. I mean, houses that were built 10 years ago and sold for $400K are now selling on the resale market for upwards of $1.4M, which is honestly insane. A 10% or even %20 percent price drop still puts a good lump of money in the seller’s pocket. No need to panic. And the interest rate increase has put a few potential buyers on their heels temporarily, so all of this is to be expected. Everyone’s just taking a moment to catch their breath, and that’s a good thing.
“Burlington appears to have lost approximately 10-20% of residential property values when comparing June 2016 to June 2017, pretty much across the board.” – This is a grossly inaccurate reading of the statistics in front of us. You are dealing with averages. That conclusion simply can’t be made. If anything the data shows a reduction in the number of active buyers. Period.