Buyers getting a break as housing market cools in Burlington, Oakville, Milton

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Published November 16, 2022 at 12:04 pm

The housing market in Burlington, Oakville, Milton and Halton Hills is looking better for buyers after being a red-hot sellers’ market for more than a year.

According to Zoocasa, an online real estate company, housing prices in Canada have steadily declined this year since the Bank of Canada began introducing interest rate hikes.

“The record price highs of last winter are long gone, and many markets in Ontario have experienced fluctuations in average prices, levels of inventory, and transactions,” said Daniel Crook, Zoocasa’s marketing and social media specialist.

“With 2023 just around the corner, we analyzed market competition across 34 cities and regions in Ontario by comparing sales and new listing data for each city for October.”

Zoocasa used the data to determine the sales-to-new-listings ratio (SNLR) for the month, calculated by dividing the total sales by the number of new listings in each region.

SNLR is used to effectively show the level of demand and supply in each area, and help identify how much competition local buyers face with regard to supply.

The SNLR can be broken down into three percentage parameters:

  • An SNLR under 40 per cent suggests a buyer’s market where new listings outweigh and buyers have more options
  • An SNLR between 40 and 60 per cent is a balanced market where demand and supply are balanced
  • AN SNLR over 60% means a seller’s market where demand outpaces supply, benefiting sellers

“Our findings show that of 34 provincial markets, just six are currently not in balanced territory, with only one favouring buyers, and the remaining five markets favouring sellers,” wrote Crook.

“The balanced markets are widespread across Ontario, reflecting the stalemate seen between buyers and sellers with interest rate hikes taking priority over financial decisions.”

As housing competition has cooled across the entire GTA, all four Halton municipalities have swung from a seller’s market last year at this time to a more balanced market.

The area as a whole saw 4,961 sales last month with 10,390 new homes coming to market, leading to an SNLR of 53.2%. With talks of another rate hike in December, it may be a while before the area begins favouring sellers again.

Some cities in the GTA have seen sharper declines than others.

Burlington’s SNLR, for example, has fallen by 39 per cent year-over-year to 44 per cent, as sales have dipped by 32 per cent to 163. New listings in Burlington have picked up by 26 per cent to 331.

In Halton Hills, the SNLR has dropped 15 per cent, to 57 per cent, Milton’s has dropped 33 per cent, to 50 per cent, and Oakville’s is down 26 per cent, to 52 per cent.

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