KITCHENER-WATERLOO, ON (September 3, 2020) ––There were 686 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in August, the most ever recorded for the month. August’s home sales represented an increase of 48 percent compared to the same month last year, and a decrease of 8 percent compared to the previous month. The previous ten-year average number of residential sales for August is 470.
“Waterloo Region has had an extremely hot market all summer,” said Colleen Koehler, President of KWAR. ”Following a spring market where most people were observing physical distancing guidelines, sales in August continued to be very active with demand continuing to outstrip supply forcing buyers to act quickly.”
Total residential sales in August included 433 detached homes (up 61.5 percent from August 2019), and 79 condominium apartments (up 38.5 percent). Sales also included 138 townhouses (up 40 percent) and 39 semi-detached homes (no change).
The average sale price of all residential properties sold in August increased 21 percent to $634,409 compared to the same month last year, while detached homes sold for an average price of $734,427 an increase of 18.9 percent. During this same period, the average sale price for an apartment-style condominium was $386,972 for an increase of 16 percent. Townhomes and semis sold for an average of $495,932 (up 18.3 percent) and $535,330 (up 21.1 percent) respectively.
The median price of all residential properties sold in August increased 20.8 percent to $597,955 and the median price of a detached home during the same period increased 17.4 percent to $675,000.
“This summer, local home sales rebounded from the COVID-19 slow down we had in the spring,” said Koehler. “While not as heated as July, August sales were another month for the record books, as home buyers returned to the market with renewed intensity.”
There were 833 new listings added to the MLS® System in KW and area last month, an increase of 43.8 percent compared to August of last year, and 26.4 percent more than the previous ten-year average for August.
The number of Months Supply (also known as absorption rate) continues to be very low at just 1 month for the month of August. The previous ten-year average supply of homes for August was 3.3 months, and in the past 5 years, the average supply for August was 2.2 months.
The average days to sell in August was 16 days, compared to 26 days in August 2019.
Koehler notes real estate was deemed an essential service from the beginning of the lockdown and REALTORS® have been taking all the necessary precautions to ensure transactions are done safely. KWAR’s president advises consumers to talk to their Realtor® about what measures they will be taking to protect your health and safety as they help you on your real estate journey.
KWAR cautions that average sale price information can be useful in establishing long term trends but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. 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 Those requiring specific information on property values should contact a local REALTOR®. REALTORS® have their fingers on the pulse of the market. They know the questions to ask, the areas to probe and what to look for so that you get a complete picture of the property and community you’re considering.