January has proven to be a very busy month in real estate and it seems that 2014 will continue along the same path!
Last year, our residential real estate market demonstrated extraordinary resilience and 2013 ended up being the second best year in housing sales since 2008! As housing values continue to climb, the average housing price is set to appreciate by 5% over the next year. This being said, the high demand and shortage of listings will contribute to the boom in activity throughout 2014.
Purchasers who are looking to move-up in the real estate market will continue to represent a large share of the purchases and sales over the next year, driving the sales of properties between $600,000 and $1 Million – a market where inventory has typically been tight. Furthermore, the demand for luxury homes in excess of $1.5 million will continue to increase as foreign investments become increasingly evident and continue to contribute to the upper tier home sales in excess of $2 Million.
The trend towards custom homebuilding in almost every Oakville neighbourhood will also continue in 2014 as purchasers move to build what they can’t buy, creating their own personal home vision. The older, existing homes in blue chip areas still experience strong demand from both end users and builders due to a tight inventory which commands a serious premium.
Lastly, and just as importantly it seems that all signs are pointing towards low interest rates and buyer excitement which will contribute to the rising home values this coming year. If you are planning on buying or selling a home in 2014, this might just be your best year to do so!
Wishing everyone a healthy, happy and prosperous New Year!