Homes sales slow but steady
Atotal of 483 residential sales occurred through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in August. This was 19.2 per cent below August 2016’s record breaking 598 units sold but still ahead of the previous five-year August average of 473 sales.
Residential sales last month brings a year-to-date total of 4,876 residential units, an increase of 3.7 per cent compared to 2016.
“I think we’re seeing some stability return to the market” says James Craig, President of KWAR. “Last summer’s record setting sales was unsustainable and created a market that no one enjoyed.”
Residential sales in August included 286 detached homes (down 18.8 per cent), and 105 condominium units (down 30.9 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 50 semi-detached homes (up 25 per cent) and 32 freehold townhouses (down 34.7 per cent).
The average sales price of all residential sales increased 10.1 per cent to $441,992 compared to August 2016. Detached homes sold for an average price of $519,910 for an increase of 5.9 per cent, while the average sale price for an apartment style condominium was $294,787 for an increase of 26.5 per cent. Townhomes and semis sold for an average of $338,191 (up 13.4 per cent) and $351,233 (up 17.3 per cent) respectively.
Realtors listed 589 residential properties in K-W and area last month, which is on par with August of 2016. Inventory levels continue to be low at just two months of inventory at the end of August. The number of months of inventory represents the time it would take to deplete current inventories at the current rate of sales. The long-term average of months of inventory for KW and area is three and half months. Last month there were 800 active listings on the KWAR’s MLS® System, compared to 760 in August of last year.
The average days on market in August was 26, compared to 33 days a year ago. On a month to month basis, it took three additional days on average from list to sale date in August compared to July.
“While the tight supply in the market continues to favour sellers we are pleased to see more inventory coming online; the steady rate of sales continues to reinforce that Kitchener-Waterloo and area remains an attractive place to invest in homeownership,” Craig said.
The 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. Those requiring specific information on property values should contact a local REALTOR®. REALTORS® know the questions to ask, the areas to probe and what to look for so that buyers get a complete picture of the property and community they’re considering.