By Cindy-lou Schmidt
It was a steadfast year for home sales in KW with single detached homes taking the lead on the most popular purchases by home buyers, while yes, prices continued to rise overall for all styles of homes for the year.
Substantially low inventory levels and a continual attraction of home buyers from outside of our Region is fueling continuing rising prices despite the number of homes sold slowing down in December.
Watch my first video of 2020 below for insight of what this means and insight into how things could look for you as a buyer, seller and homeowners!
NUMBER OF SALES:
KITCHENER-WATERLOO, ON (Jan 6, 2020) ––There were 5,925 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in 2019, an increase of 1.6 per cent compared to 2018. Contrasted to past years, 2019’s annual sales were 2.3 per cent below the previous 5-year average, and 3 per cent above the previous 10-year average.
On a monthly basis, sales dipped 9 percent compared to last year, with 244 home sales in the month of December.
Total residential sales in 2019 included 3,590 detached (up 5.9 per cent), and 648 condominium units (down 7.8 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 421 semi-detached homes (down 0.7 per cent) and 1,266 freehold townhouses (down 3.7 per cent).
The average sale price of all residential properties sold in 2019 increased 9.3 per cent to $527,718 compared to 2018. Detached homes sold for an average price of $614,743 an increase of 7.1 per cent compared to 2018. During this same period, the average sale price for an apartment style condominium was 332,409 for an increase of 9.6 per cent. Townhomes and semis sold for an average of $409,979 (up 10 per cent) and $439,844 (up 11 per cent) respectively.
The median price of all residential properties sold last year increased 10.1 per cent to $490,000 and the median price of a detached home during the same period increased 8.6 per cent to $570,000.
The number of months of inventory averaged 1.5 throughout the year, hitting its highest point in May when there was 2.1 months of supply, and ending the year at 0.7 (3-4 months supply is historically normal for Waterloo region). The average days to sell in 2019 was 23 days, compared to 24 days in 2018 and a previous 10-year average of 38 days.
Dollar volume of all residential real estate sold last year increased 10.9 per cent to $3.1 Billion compared with 2018.
While the majority of residential MLS® System activity is properties for sale, REALTORS® are increasingly representing landlords and tenants. Last year 733 residential leases occurred through KWAR’s MLS® System, which is on par with last year and, 2.5 times as many as just four years ago.
- 424 homes sold through MLS in KWAR total (DOWN 12.8%)
- 265 detached homes were sold (DOWN 1.5% )
- 46 condominium apartments (DOWN 28.1%)
- 75 freehold townhouses (DOWN 38.5%).
- 38 semi-detached homes (UP 31%)
- Sellers: Start planning for Spring Market 2020. Meet with your agent in January.
- Buyers: Want to own, upsize or downsize? Be proactive. Rising prices and stats show you’re paying more over time for the same thing by waiting.
- Rent is rising….which is why more homes are showing up on the MLS for lease with real estate agents.
I hope you enjoyed our Simplified Market Update! We strive to keep you informed and aim to elevate your life through smart real estate decisions.