KITCHENER-WATERLOO, ON (September 5, 2019) ––459 residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in August, a decrease of 9.1 percent compared to the same month last year.
Home sales in August included 267 detached (down 11.9 percent), and 56 condominium apartments (down 13.8 percent). Sales also included 97 townhouses (down 4.9 percent) and 39 semi-detached homes (up 11.4 percent).
“The number of homes sold last month was below the average for August; however, we continue to see strong price gains across all property types,” says Brian Santos, KWAR President.
The average sale price of all residential properties sold in August increased by 6.4 percent to $524,482 compared to August 2018. Detached homes sold for an average price of $615,568 (an increase of 5.4 percent compared to August of last year. During this same period, the average sale price for an apartment-style condominium was $324,778 for a decrease of 3.1 percent. Townhomes and semis sold for an average of $420,239 (up 18.3 percent) and $441,802 (up 10.2 percent) respectively.
The median price of all residential properties sold last month increased 8.1 percent to $495,000 and the median price of a detached home during the same period increased by 2.8 percent to $560,000.
REALTORS® listed 574 residential properties in K-W and area last month, a decrease of 14.5 percent compared to August of 2018, and a decrease of 13 percent in comparison to the previous ten-year average for the month of August. The total number of homes available for sale in active status at the end of August totaled 734, a decrease of 17.3 percent compared to August of last year, and well below the previous ten-year average of 1,426 listings for August. Months Supply of Homes for sale stood at 1.5 months in August, which is 16.7 percent lower than the same period last year.
The average days it took to sell a home in August was 26 days, which is two days fewer than it took in August 2018.
“We’re noting differences in market balance depending on the price range,” says Santos. “For homes priced under $600 thousand, it is still a strong seller’s market, whereas above $600 thousand, it is a more balanced situation.”
As an indicator, Santos points to the month’s supply of homes, also known as the absorption rate. For homes priced at more than $600,000, the months of supply stood at 3.4 in August, compared to 0.9 months for homes prices under that amount. Months supply is the inventory of homes for sale at the end of a given month, divided by the average monthly closed sales from the last 12 months. The previous ten-year average months supply across all price ranges has been just over 3 months.
“It all comes down to what the buyers can find in their price range,” says Santos. “Homes in Kitchener-Waterloo are definitely in high demand, and there is strong competition among buyers trying to find one that will suit them.”
Santos advises buyers to work with a local REALTOR® who has a complete understanding of our region to give them an advantage in this crowded KW housing market.