Hot July in both weather and real estate

It’s August. Where did the last five months go? I see posts about PJ’s, midday snacks and a new trend of baking bread. I wish I could say I have been relaxing in “sweats,” however, the real estate market has been as busy as our weather has been hot. This column will focus on where we are in Oshawa for prices and how heated the market has become.

We are continuing to experience record lows in the homes that are currently for sale. As of August 4, Oshawa had a total of 246 homes for sale. Compare this to the end of July 2019, the number of homes listed for sale was 532! I will cover the results below, however the lack of availability of homes is one of the contributing factors to multiple bids and home prices increasing on a monthly basis. If I can use a retail example, when you are out buying a car and you have five dealerships you can shop prices from, you will go to the dealer that will offer the best price and terms. If you have only one dealer, your ability to negotiate is lessened dramatically. Likewise, with fewer homes for sale and a steady flow of buyers, the negotiation takes on a different approach. Rather than “how much do you think we can get it for,” the narrative becomes “how much will I have to pay to buy this home?” Let’s dig into how this inventory shortage is affecting Oshawa.

Oshawa Bungalow:

End July/20 Average selling price $611,500 End June/20 $588,700 +$22,800

• 66 sold – 70 per cent sold for full price or over asking.

Oshawa 2 Storey:

End July/20 Average selling price $734,000 End June/20 $700,000 +$34,000

• 76 sold – 54 per cent sold for full price or over asking.

Oshawa Semi-Detached:

End July/20 Average selling price $516,000 End June/20 $504,000 +12,000

• 35 sold – 80 per cent sold for full price or over asking.

This may seem counter intuitive. We are in a pandemic and in a real estate boom market at the same time.

One of the factors seems to be a cohort of buyers coming from the Toronto area and west into Mississauga. I read recently that Oshawa has one of the highest rental rates in Ontario, and given the fact we have one of the lowest price points in the Toronto area, homes here are seen as offering a good return on investment. As per the CCPA website, Oshawa is ranked as having the eighth highest rental rates in Canada.

It is a fascinating time for real estate in Oshawa. Low inventory of homes for sale is driving prices up, causing multiple bids on properties and an influx of buyers coming from the west looking for homes to live in and to rent out as investment properties. The fix is an easy one. Once sellers decide to get their homes on the market and our inventory grows, bidding wars will lessen, selection will increase for the buyers, and once the newly acquired rental properties hit the market, the market will adjust the rental rates with more availability for tenants. It all begins with sellers making a decision to move.

If you have any questions about how to navigate the buying or selling process, or if you see a real estate emergency on the horizon, I can be reached at lindsay@buyselllove.ca.

Lindsay Smith
Keller Williams Energy Brokerage