Cost of a home purchase fell in November in Oakville, Milton, Burlington

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Published December 6, 2022 at 11:39 am

The cost of buying a new home in Burlington, Oakville, Milton and Halton Hills continued to plummet in November.

According to a report released by by the Toronto and Region Real Estate Board (TRREB), the market continued to be influenced by the impact of higher borrowing costs.

Across the region, sales were down markedly compared to the same period last year, following the trend that unfolded since the commencement of interest rate hikes in the spring. New listings were also down substantially from last year, and at a very low level historically.

“Increased borrowing costs represent a short-term shock to the housing market,” said TRREB President Kevin Crigger.

“Over the medium to long-term, the demand for ownership housing will pick up strongly. This is because a huge share of record immigration will be pointed at the GTA and the Greater Golden Horseshoe in the coming years, and all of these people will require a place to live, with the majority looking to buy.

“The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth.”

The reduced cost in Halton municipalities has been drastic.

In Burlington, the year-to-date average selling price has been $1.22 million. In November, it was $964,000. In Halton Hills, year-to-date is $1.26M and November is $1.06M. In Milton, year-to-date is $1.17M and November is $1.07M. In Oakville, year-to-date is $1.63M and November is $1.39M0

“We have seen a lot of progress this year on the housing supply and related governance files such as the More Homes Built Faster Act. This is obviously good news,” said TRREB CEO John DiMichele, a sentiment that is not shared by municipal governments.

“However, we need these new policies to turn into results over the next year. Otherwise, the current market lull will soon be behind us, population growth will be accelerating, and we will have done nothing to account for our growing housing need.”

For the full TRREB report, visit here.

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