KITCHENER-WATERLOO, ON (October 5, 2020) ––There were 758 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in September, the most ever recorded for the month. September’s home sales represented an increase of 41.6 percent compared to the same month last year, and an increase of 8 percent compared to the previous month. The previous ten-year average number of residential sales for September is 460.

“This is far more home sales then what we would normally see in September as buyers continue to play catch up from the COVID-19 hindered spring market,” said Colleen Koehler, President of KWAR. “While the pandemic has had devastating impacts on many aspects of our lives it has only solidified the importance of home and homeownership.”

Total residential sales in September included 431 detached homes (up 28.6 percent from September 2019), and 93 condominium apartments (up 127 percent). Sales also included 178 townhouses (up 43.5 percent) and 54 semi-detached homes (up 59 percent).

The average sale price of all residential properties sold in September increased 17.5 percent to $637,691 compared to the same month last year, while detached homes sold for an average price of $768,762 an increase of 25 percent. During this same period, the average sale price for an apartment-style condominium was $390,690 for an increase of 13 percent. Townhomes and semis sold for an average of $ 476,636 (up 8.7 percent) and $544,874 (up 16.5 percent) respectively.

The median price of all residential properties sold in September increased 13.7 percent to $580,250 and the median price of a detached home during the same period increased 16.5 percent to $676,000.

“We saw more new listings coming to the market in September which was welcome,” said Koehler. “However, demand continues to outpace supply.”

There were 929 new listings added to the MLS® System in KW and area last month, an increase of 13 percent compared to September of last year, and 17.7 percent more than the previous ten-year average for September.

The number of Months Supply (also known as absorption rate) continues to be very low at just 1 month for the month of September. The previous ten-year average supply of homes for September was 3.3 months, and in the past 5 years, the average supply for September was 2.2 months.

The year-to-date number of residential sales has increased 2.6% over 2019 indicating that the decreased activity in April and May has been more than made up in the past four months.

KWAR’s president believes one of the results of the pandemic is that it has forced many employers to realize their staff can in fact work remotely. This has freed employees to migrate from some large urban areas to more affordable areas such as Waterloo Region that offers a higher quality of life.

To help encourage new listings and address our supply shortage, Ontario’s REALTORS® are asking the government to introduce a short-term Land Transfer Tax holiday. More information about this and other proposals can be read in the Ontario Real Estate Association’s (OREA) recently released policy report, Rebuilding Ontario: A Framework for Recovery.

The average days to sell in September was 14 days, compared to 23 days in September 2019.

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