A real estate artificial intelligence model is predicting Oshawa’s residential home price average will spike by nearly three per cent this month from January 2024, with more higher-priced homes changing hands helping to boost the average.
The model, developed by real estate brokerage Zown, also declared that the city’s condo market will cool off and experience a 10.27 per cent decrease in year-over-year prices over the same period.
Zown, which singles out a “pent-up demand” in the market as the driver behind the price changes, is forecasting an average price for homes sold this month of $846,874, up 2.56 per cent from last year when 144 homes were sold in Oshawa at an average price of $825,740.
Condo sales are expected to be another story entirely, with average sale prices of $448,645 predicted – nearly $52,000 down from last year when 28 condos were sold.
The spike in activity this month could be a signal that the end of the market lull is near, said Zown CEO and co-founder Rishard Rameez.
“The anticipated interest rate cuts are unleashing pent-up demand, while limited inventory continues to put upward pressure on prices, Rameez said, adding that Oshawa’s proximity to Toronto and its relative affordability are attracting both first-time buyers and investors, “further fueling this growth.”
“As we move into 2025, we expect this trend to continue, with Oshawa emerging as a hotspot outside of the Greater Toronto Area real estate market.”
Rameez said buyers have more purchasing power for higher-priced properties than they did last January, mainly due to lower interest rates and reduced down payment requirements for homes over one million. This shift has led to an increase in the average sold price.
“It’s not that properties once priced at around $800,000 are now selling for $1 million; rather, more sales are occurring in the higher-end market, which drives up the overall average price.”