Milton Market Update | January 2024
Have the tides turned for buyers and sellers in Milton?
Whether you're considering buying or selling or just curious about our local real estate dynamics, you won't want to miss this comprehensive overview. Let's delve into the intricacies of what's truly transpiring within the real estate market in Milton, focusing on new listings and real estate trends.
How has the housing inventory in Milton evolved from December 2023 to January 2024?
111 homes were sold in Milton this January, representing a 53% increase over last year. The average sale price in Milton's real estate market was $1,033,641, indicating a 4.3% increase over December. Statistics were used from the Toronto District Real Estate Board. The Median Price was $999,999.
It took 53 days on average for a property to sell, and the Average list price to sale price was 99%, which is up over the 97% we saw in December, meaning sellers are getting closer to their asking price.
What are the current real estate market trends in Milton for January 2024?
The real estate market trends in Milton for January 2024 indicate a promising start to the year, with steady home price growth.
How do the house prices in Milton compare to those in Oakville?
The house prices in Milton are currently more affordable compared to Oakville, making it an attractive option for homebuyers looking for a relatively more budget-friendly housing market.
Why the sudden increased activity?
Buyers have been patiently waiting in the wings, and there is a discernible accumulation of pent-up demand in the Milton neighbourhoods. With most economists predicting that rates will start to come down by mid-year with the slight declines we saw in the fixed rates coupled with lower inventory levels, you've got a recipe for what looks like a frothy spring market.
That increased buyer activity was a welcome change from the last quarter for sellers and as we progressed in January, we saw more sellers opting to list their home at an artificially low price and hold back on offers.
Pricing Strategy and Inventory Demand
This is where you see a home listed at a "too good to be true price." This could look like fifty thousand to even two hundred and fifty thousand dollars lower than their desired sale price and holding offers. This method implies that the sellers set an offer date, typically 3-7 days in the future, and notify potential buyers when they will be open to reviewing all offers. This is a marketing price they are putting on the property, not a true "asking price " as most sellers wouldn’t accept the price they are listed at when they are choosing this pricing strategy.
This strategy is useful in a low inventory market, where the demand is higher than the available homes for sale. It is used to drive appointments and generate multiple offers.
What are the Risks?
The RISK is that on offer day, you may not receive offers in the price range that you were hoping for or possibly no offers at all. Some sellers will then either accept an offer less than they had hoped to receive or choose not to accept any of the offers and relist the property at a higher price.
This list low-and-hold strategy has continued into February in Milton, and as a team, we've found our clients in multiple offer situations a number of times already this year.
What are the current housing market issues?
This fundamentally goes back to the underlying issue that remains: lack of supply. We do not have enough homes available. We've seen government intervention into this issue many times. The Federal Government recently announced that they've extended the foreign buyer ban for an additional 2 years until Jan 1, 2027.
This move hopes to ensure that the available housing will be available as homes for Canadians to live in and not as a speculative financial asset class.
What Has Changed in 2024?
Open Offers
Other changes we have seen come into play include the ability to hold Open Offers. The details of your offer to buy a home is no longer a secret. The rules have changed under the new TRESA legislation, changing the landscape of what we are allowed to share when there are competing offers on a property. We still must disclose the NUMBER of competing offers…but the details? They were top secret... until now! Sellers call the shots on sharing offer CONTENT if they so choose to, in addition to our requirement to share the number of offers. Sellers can now direct agents in WRITING on what to share, including prices, conditions, or closing dates. We have yet to see this in any of the multiple offers we’ve been a part of, but we have heard of other sellers opting to share.
Coming Soon - Advertising Changes
Additionally, how we can advertise our coming soon properties has changed. We can only advise the public of coming soon properties to the public three days before the property goes on the MLS.
Connect with Us!
The Milton real estate market demonstrates resilience with increased activity and a quicker turnaround for listings. As we move forward, these insights can guide sellers in pricing strategies and inform buyers about the competitive landscape awaiting them.
If you’ve been thinking of making a move, we’d love to connect with you for a conversation. Connect with us in the form below!