Low inventory of homes contributing to record prices
KW housing prices continued to soar in January, with the benchmark price for the average detached home eclipsing $500,000 for the second straight month. “The continued strong demand combined with a tight supply of listings means that many properties are not on the market for very long,” said James Craig, President of the Kitchener-Waterloo Association of REALTORS®. “This has created an extremely competitive buying environment.”
The number of residential sales in January through KWAR’s Multiple Listing System increased 5.8 per cent compared to January 2016 – 22 per cent above the five-year average for January.
A total of 327 residential properties sold last month including 194 detached homes (down 5.4 per cent compared to January 2016), 79 condominium units (up 19.7 per cent) which include any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 32 semi-detached homes (up 128.6 per cent) and 20 freehold townhouses (down 9.1 per cent).
While demand remained strong in January, the number of active listings was down significantly: 367 active listings at the end of January versus 1,068 in 2016.
The average days on market in January were significantly shorter than a year ago: 22 days, compared to 47 days, and six days quicker than in December.
The average sales price of all residential properties sold in January was $421,104, a 0.5 per cent decline compared to the previous month, and a 19.1 per cent increase compared to January 2016.
Reaching a new milestone in December, was the average price of a detached home sold through the KWAR’s MLS® System which for the first time surpassed the half million mark; a benchmark that was repeated again in January, with the average detached home selling for $501,821, an increase of 22.7 per cent compared to the same month a year ago.
In the condominium market the average sale price for an apartment style unit was $237,220 in January, a 2.8 per cent