By Cindy-lou Schmidt
There were 5,823 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in 2018, a decline of 11.1 per cent compared to 2017.
With 263 transactions taking place last month, December’s home sales were down 13.2 per cent from this time last year and slightly behind the previous 10-year average of 268 sales for the month of December.
The combination of rising interest rates and the mortgage stress test have continued to impact our market here in Waterloo Region. As a result of the changes over the last year and a half, December showed evidence of a trend to typical sales numbers as seen in 2016 and previous.
NUMBER OF HOMES SALES SUMMARY:
Total residential sales in 2018 included 3,355 detached (down 16.2 per cent), and 1,553 condominium units (up 6.4 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 417 semi-detached homes (down 23.6 per cent) and 431 freehold townhouses (down 7.7 per cent).
Cindy-lou’s Simplified Market Update
AVERAGE SALES PRICE SUMMARY for 2018:
The average sale price of all residential properties sold in 2018 increased 3.4 per cent to $483,537 compared to 2017. Detached homes sold for an average price of $575,412, an increase of 4.8 per cent compared to 2017. During this same period, the average sale price for an apartment style condominium was $304,676 for an increase of 12 per cent. Townhomes and semis sold for an average of $373,307 (up 5.5 per cent) and $396,391 (up 4.7 per cent) respectively.
NUMBER OF SALES:
265 detached homes were sold in November (up 9.5 per cent compared to November 2017). Of those sold:
- 152 condominium units (up 52 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.).
- 27 semi-detached homes (down 46 per cent)
- 31 freehold townhouses (up 14.8 per cent).
Sellers: Be very attentive to the price you plan to list at. What matters is what a home sells for, not what it lists for. So don’t set yourself up to chase a market in which your price is set for a 2018-2018 era when it needs to acclimatize to the current market value.
Buyers: Don’t let the declining number of homes being sold make you feel that prices are going to drop and waiting for this drop. Prices will likely continue to appreciate in a healthy manner because of the desirability of Waterloo Region.
Additionally, Realtors are beginning to handle more lease contracts between landlords and tenants indicating an increase in the trend in higher rental costs.
I hope you enjoyed my Simplified Market Update. I strive to keep my clients and readers informed and empowered to live and become Real Estate Champions.
Full Official Full KWAR Media Release here.