KITCHENER-WATERLOO, ON (Mar 4, 2021) ––There were 597 residential homes sold through the Multiple Listing Service® (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in February, an increase of 27.8 percent compared to February 2020, and an increase of 66.7 percent compared to the previous month. The previous 10-year average number of residential sales for February is 407.
“Competition for homes continued to be extremely intense in February, leading to a record-breaking number of home sales for the month,” says Nicole Pohl, President of KWAR.
Total residential sales in February included 337 detached (up 23.9 percent from February 2020), and 101 condominium units (up 57.8 percent). Sales also included 47 semi-detached homes (up 46.9 percent) and 112 townhouses (up 13.1 percent).
In February, the average sale price of all residential properties sold in 2021 increased by 32.1 percent to $752,289 compared to the same month last year. Meanwhile the average price of a detached home hit yet another new milestone by exceeding 900-thousand-dollars for the first time, coming in at $910,126 an increase of 35.4 percent. During this same period, the average sale price for an apartment-style condominium was $415,322 for an increase of 11.9 percent. Townhomes and semis sold for an average of $609,566 (up 37.5 percent) and $684,787 (up 41.1 percent) respectively.
“We continued to see dramatic increases in the average price in February due to the persistent and fierce competition for homes in our region combined with short supply,” says Pohl.
The president of KWAR notes that buyers are very frustrated competing in this hyperactive market. The low inventory and mortgage rates are resulting in multiple offers, higher prices and creating a fear they are missing out on the chance to become homeowners in this unprecedented market.
“The rise in the average price we’ve been tracking the past several months has included some exceptional sale prices. That’s why this month and going forward we will also be including the MLS® HPI to provide a clearer picture of our local housing market trends.”
The MLS® HPI is a sophisticated statistical model and more stable price indicator than average or median price measures because it considers how the features of a home affects its price – such as age, number of bedrooms, and number of bathrooms.
The MLS® Home Price Index composite benchmark price for all residential properties in Kitchener-Waterloo was $709,600 in February. This represents a 27.9 percent increase over February 2020 and a 5.6 percent increase compared to January 2021.
The benchmark price for a detached home was $788,500. This represents a 28.8 percent increase from February 2020 and 6.1 percent increase compared to January 2021.
The benchmark price for an apartment-style condominium was $341,200. This represents a 13.9 percent increase from February 2020 and a 0.1 percent increase compared to January 2021.
The benchmark price for a townhouse is $526,700. This represents a 33.1percent increase from February 2020 and a 6 percent increase compared to January 2021.
There were 737 new listings added to the MLS® System in KW and area last month, an increase of 21 percent compared to February of last year, and a 15.7 percent increase compared to the previous ten-year average for February.
The total number of homes available for sale in active status at the end of February was 295, a decrease of 33.6 percent compared to February of last year, and 73 percent below the previous ten-year average of 1,096 listings for February.
The number of months of inventory in Waterloo region was 0.5 in February and has numbered less than 1 month since October. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.
The average number of days to sell in February was 10 days, compared to 17 days in February 2020 and a previous 5-year average of 33 days.
Those requiring specific information on property values should contact a local REALTOR®. Working with a Realtor is the best way to get a complete picture of the property and community you are considering.