As we move through February 2025, the Burlington housing market is showing signs of change. Whether you're considering selling your property or simply keeping an eye on local trends, it's important to understand the current conditions and how they could impact your next move. Let’s break down the key trends, price shifts, and market projections to help you navigate the market with confidence.
Market Overview: Key Property Trends
1-Storey Detached Homes
In February 2025, the Home Price Index (HPI) for 1-storey detached homes saw a solid increase of 4.9% from January 2025 to February 2025, with a year-over-year increase of 6.0%. The absorption rate stands at 27.7%, placing this segment just outside of a balanced market.
2-Storey Detached Homes
While 2-storey detached homes experienced a slight dip of -4.4% month-over-month, their year-over-year HPI shows a decrease of -1.5%. These homes have an absorption rate of 27.7%, which is also slightly outside of a balanced market.
Townhomes
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Condo Townhomes saw a modest 0.4% increase in HPI from January to February 2025, with a 25% absorption rate. This indicates that while it’s not quite a balanced market, it's performing relatively well.
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Freehold Townhomes are standing out with a 39.5% absorption rate, indicating a balanced market with strong buyer interest.
Apartments
Apartment absorption rates have dropped to 16.5%, signaling a buyer’s market. These properties saw a slight decrease of -0.2% over the past month, with a -0.5% decline year-over-year.
Current Market Conditions for Burlington
The market has experienced a dramatic slowdown in early 2025. Here are some key insights:
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Sales Volume Decline: Burlington has seen the lowest number of sales recorded for February in recent years, dropping 51.9% year-over-year.
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Rising Inventory: Although new listings have decreased by 17%, inventory has increased by 28.5%, leading to more homes available on the market.
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Months of Supply: The months of supply have surged by 167.3% year-over-year, now sitting at 4.6 months. This indicates that homes are taking longer to sell and that buyers have more options available to them.
Price Trends and Changes
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Benchmark Price: The benchmark price for homes in Burlington is currently $1,008,100, which is down 2.7% from last year. The price trend has been mixed, with row homes showing a 3.6% price increase, while detached homes have seen a 13.0% decrease.
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District Variance: Prices in specific districts of Burlington have seen different trends. For example, Burlington 33 experienced a 26% increase in average prices, while Burlington 31 saw a significant 18.1% decrease. These fluctuations highlight the importance of understanding local sub-markets when pricing a property.
Market Projections & Economic Outlook
While initial projections for 2025 predicted a 2.5% growth in the housing market, recent developments, particularly the ongoing trade war and the potential impact of U.S. tariffs, have introduced some uncertainty into these forecasts. The effect of these economic changes on the housing market remains unclear. In the short term, they could either suppress or support home prices, making it difficult to predict exact outcomes.
For sellers, this uncertainty means it's especially important to price properties strategically to navigate potential challenges in buyer sentiment and purchasing power.
Pricing Strategy: How Sellers Can Stay Competitive
Given the current market conditions, here are some recommendations to help sellers price their properties effectively:
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Competitive Pricing: With rising inventory levels and slower sales, it's critical to price the home competitively. Homes priced too high may linger on the market longer and become stale. Pricing just below market value could attract more buyers in a competitive environment.
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Flexibility in Negotiation: Buyers in this market may be more cautious, so sellers should be prepared to negotiate. Offering flexibility on price or terms can help move a property in a slower market.
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Monitor Market Segment: Different property types are seeing varying trends. For instance, row homes have shown a slight price increase, while detached homes have seen price declines. Sellers should benchmark against similar properties in their category and district to ensure they are pricing appropriately.
Market Timing: The Right Moment to Sell
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Longer Time to Sell: With months of supply increasing, properties are taking longer to sell. Sellers should be prepared for extended listing periods and be patient with the process.
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Economic Pressures: Given the surrounding economic uncertainty—especially with potential U.S. tariffs impacting nearby cities—sellers should keep an eye on broader economic trends. These factors could influence buyer behavior and market sentiment in Burlington.
Conclusion
As we head into 2025, the Burlington housing market presents a mix of challenges and opportunities. While price trends and sales volumes have been affected by broader economic uncertainty, there are still opportunities for sellers to succeed. By pricing strategically, staying informed of local market trends, and being prepared for longer sale periods, sellers can navigate the current market effectively.
If you're thinking about buying or selling, or just want to understand how these trends could impact your decisions, don’t hesitate to reach out. Let’s work together to find the right approach for you!
