Despite June being the first month of this year to show a year-over-year decrease in sales, the overall state of the Kitchener-Waterloo real estate market looks very strong over the first half of the year. A slight decline compared to June of last year was certainly no cause for concern, given that 2016 saw many all-time records broken. Sales levels in 2017 stayed well above the 10-year average, and the market shows signs of ongoing strength moving into the second half of the year.
Overall, the region saw 716 home sales in the month of June. This brings the year-to-date sales total to 3,834 homes for the first half of 2017. This paints a much more accurate view of the strength of the local market than statistics from a single month, and shows a 9.1% year-over-year increase in sales when held up to the first half of last year.
More Listings Helping to Meet Demand
The number of months of available inventory in Kitchener has been, and continues to be, quite low. At the end of June 2017 there was less than a month of available inventory left on the market. However, an influx of new listings is helping to offset the strong sales figures in the area. For June 2017, 1,083 new homes were listed in the city, which was 28.7% more than were listed in June of the previous year.
Prices Moving More Dramatically than Listings or Sales
The high demand and low availability of homes in Kitchener has certainly driven prices sharply upward. In June, the average price of all homes sold during the month was 19.8% higher than last year’s average, settling at $465,772. That breaks down to $537,389 as the average for detached homes, while condos were averaging $276,443. Townhouses and semi-detached homes saw even sharper increases in prices than other segments of the market, with townhomes increasing 23.2% to $341,716, and semi-detached properties climbing 28.4% to $380,660.
Until the supply in Kitchener starts to catch up with demand, prices are going to continue to be driven sharply upwards. Although new listings are increasing, which is good news for those hoping for balance to come to the market, the low overall levels of inventory mean that it could take many months for balanced market conditions to reassert themselves. In the meantime, those looking to sell in the area are able to capitalize on high demand, limited options, and premium pricing.
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