Kitchener Market Snapshot for 2019

2019 A STEADFAST YEAR FOR HOME SALES IN KW

Sales Dip in December, While Prices Continue to Escalate 

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.

“Overall, it was a steadfast pace of home sales in 2019,” says Colleen Koehler, President of KWAR.  “When annual home sales in Kitchener-Waterloo hit near 6000 transactions, I consider it to be a strong real estate market.”

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.

“In 2019, the lack of supply continued to be a hurdle for anyone who was trying to buy their first home, move-up from their current residence, or downsize. This ongoing state of the market caused further escalation of home prices in 2019. With interest rates expected to stay low in the year ahead combined with Waterloo region’s ongoing growth, I expect 2020 will see more price gains alongside a steady increase in sales,” says Koehler.

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.

Historical Sales by Property Type

Months Supply of Homes for Sale

Historical Median Sales Price – By Property Type

Average Sales Price – By Property Type

Historical Sales – By Price Range

Average Days on Market

KITCHENER-WATERLOO, ON (May 3, 2018) –– In April, the 616 residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) were up 13.7 per cent compared to last month and down 19.6 per cent compared to home sales a year ago. “Home sales in April were as brisk as the temperatures”, says Tony Schmidt, KWAR President. “While down from last year’s record breaking number of sales, it was a slightly more active April than average historically speaking.”

Read the Full Release Here! 

In March, the 540  residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), represented an increase of 43.6 per cent compared to last month and a decrease of 25.8 per cent compared to home sales a year ago.

“Home sales in Waterloo Region last month mirrored the greater activity across the Greater Golden Horseshoe. Numbers are down year over year, but the market is showing signs of warming up after the long winter”, says Tony Schmidt, KWAR President. “Make no mistake; we are still deep in a sellers’ market and not expecting that to change for the remainder of the year. And while 2018 won’t be quite as hectic as 2017, the market is going to be demanding. REALTORS® on the street are reporting strong demand throughout the region and receiving multiple offers on many homes.”

VIEW FULL RELEASE

In February, the 377  residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), were an increase of 40 per cent compared to last month and a decrease of 20.5 per cent compared to home sales a year ago.

“When we consider market activity we have to acknowledge that sales from the previous year or two were an anomaly”, says Tony Schmidt, KWAR President. “If you compare last February against the ten year average of sales, it was a pretty typical February”.

VIEW FULL RELEASE 

READ FULL RELEASE

READ FULL RELEASE

This article appeared in the Saturday, May 20, 2017 issue of Waterloo Region Homes.

Knock Knock? Who’s there? Someone who wants to buy your house? Consumer Beware! For most readers this is no newsflash: Waterloo region’s residential real estate market is red hot!

Like many markets across the Greater Golden Horseshoe (GGH), we in Waterloo region have been experiencing record breaking sales combined with low inventory levels for months now. In other words, it is a sellers’ market.

During the first quarter of 2017, there were 1,532 home sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR). The average price of a residential home during this same period increased a whopping 28.3 per cent on a year-over-year basis to $468,653.

While statistics like this can paint some of the picture, what it cannot tell you is what your home will sell for. The fact is no one really knows what price their home will fetch until it is put to the test of being listed with your Realtor on the MLS® System.

These days we are seeing some sticker shock. For example, when a house priced in the $300,000 range subsequently sells for a hundred-thousand dollars over asking! Does this mean that every home listed for $300,000 will bring substantially more? Absolutely not! In fact, it might sell for exactly $300,000 or even less. Only the market can determine sale price, but the experience of a knowledgeable local Realtor can certainly help predict it.

With a shortage of listings (we have been sitting at less than two month’s inventory or less for the past 12 months) inventory levels are at an unprecedented low and buyer creativity at an all-time high. One strategy some buyers and their Realtors have turned to in these times is good old fashioned door-knocking to find homeowners who could be tempted to sell while the market is hot.

Now, knowing what you do know about today’s market, what would you do if someone came knocking on your door tomorrow, offering you X amount for your house? Would you know if what they were offering was fair market value?

There is certainly nothing wrong with this practice and when it works out it can be a win-win for both buyer and seller. On the other hand, my caution to homeowners is: the person doing the knocking may be offering you a price that sounds attractive, but how can you be sure?

Sometimes in this scenario, sellers are attracted by the idea of a quick hassle-free transaction. They’ve been offered a price that is way more than what they originally paid for their home, and maybe even way more than what they ever dreamed they could ever get.

I have heard a few anecdotes recently where the buyer knocking on the door has actually encouraged the homeowner NOT to use a Realtor (It would be unethical and illegal for a Realtor to do this by the way).

In one case, the gentleman did sell his house without the aid of a Realtor, and the price he sold it for – while far more than what he paid when he purchased it over 30 years ago, was substantially less than what he would have got had he put it on the open market.

I think the Canadian Real Estate Association’s latest advertising campaign says it best: “Live with No Regrets.” Using a Realtor is the most important decision you can make when buying or selling.

On whatever side of the transaction you are on, if you have a Realtor in your corner (i.e. you’ve entered into either a listing agreement or a buyer representation agreement) they have a legal duty to only act in your best interests. Furthermore, they are bound by the Real Estate Council of Ontario, the Canadian Real Estate Association and their local real estate board’s Code of Ethics, rules and regulations.

When your home is listed by a Realtor you get the counsel of someone who understands the market and can guide you on the best pricing and selling strategy. If you’re purchasing, your Realtor will provide you with insight and advice on the home, the neighbourhood, and when it comes to submitting an offer, how many other buyers you are competing against and advice on the price you offer. So what should you do when someone comes knocking on your door? Please take my advice: take their information and then talk to a Realtor. He or she will be able to assist you in reviewing the doorknockers’ offer and help you understand all of your options to ensure you end up with the offer that is best for you.