Fewer Home Sold and Not Enough Homes for Buyers — So what was the theme for January 2020? It was a tough one for buyers and a little misleading when you see that sales have been on the decline for three months. But why are they on the decline? It’s because there at not enough homes on the market to fulfill buyer need here in Waterloo Region.
Substantially low inventory levels and a continual attraction of home buyers from outside of our Region is feeding the rising prices and it doesn’t look like it will slow down as we head into the heat of spring market.
Watch my Simplified Market Update for February 2020 to see how things could look for you as a buyer, seller and homeowner!
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 8.2 percent compared to last year, with 281 home sales in the month of January. It was also 3.6% below the 10 year average and 3.8 % below the 5 year average.
Total residential sales in January included 153 detached homes (down 19 per cent), and 39 condominium units (up 18.2 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 21 semi-detached homes (on par) and 68 freehold townhouses (up 7.9 per cent).
The average sale price of all residential properties sold in January increased 15.7 per cent to $561,029 compared to the same month last year, while detached homes sold for an average price of $670,944 an increase of 18.8 per cent. During this same period, the average sale price for an apartment-style condominium was 382,636 for an increase of 26.1 per cent. Townhomes and semis sold for an average of $439,765 (up 20.3 per cent) and $484,190 (up 18.7 per cent) respectively.
The median price of all residential properties sold in January increased 17.3 per cent to $536,000 and the median price of a detached home during the same period increased 22.6 per cent to $650,000.
REALTORS® listed 464 residential properties in KW and area last month, a drop of 21.1 per cent compared to January of 2019, and a decrease of 35.4 per cent in comparison to the previous ten-year average for January. The total number of homes available for sale in active status at the end of January was 392, a decrease of 38.7 per cent compared to January of last year, and 63.7 per cent below the previous ten-year average of 1,080 listings for January. The number of Months Supply (also known as absorption rate) in January was just 0.8 months, 38.5 per cent below the same period last year. The previous ten-year average supply of homes for January was 2.32 months, however, in the past 5 years the average supply for January was 1.96 months.
The average days to sell in January was 22 days, compared to 27 days in January 2019.
- Sellers: Start planning for Spring Market 2020. Meet with your agent now to maximize the sale of one of your biggest assets.
- 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. Imagine if you bought last year. How would you feel now?
- Homeowners: Enjoy your asset and think about home maintenance to keep your home in great condition.
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.