July 2017 KW Real Estate Update
August 10 2017 Posted by Heather Maitland
In July there was a total of 558 residential sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), a decline of 5.1 percent compared to the same month last year, but still slightly above the previous 5-year average for July (542).
July’s sales bring the year-to-date total to 4,387 residential units, an increase of 6.9 per cent compared to 2016.
“Home sales remain very strong, and while they have eased in comparison to July of last year, we have to remember that was a crazy busy time,” says James Craig, President of KWAR. “What we’re seeing now is the more typical summer slowdown, but overall July was still an above average month.”
Residential sales in July included 365 detached homes (on par with July 2016), and 113 condominium units (down 21.5 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 38 semi-detached homes (down 20.8 per cent) and 36 freehold townhouses (up 44 per cent).
The average sales price of all residential sales increased 17.4 per cent to $455,217 compared to July 2016. Detached homes sold for an average price of $519,507 for an increase of 14.7 per cent, while the average sale price for an apartment style condominium was $277,866 for an increase of 13.9 per cent. Townhomes and semis sold for an average of $350,342 (up 22.8 per cent) and $352,721 (up 14.3 per cent) respectively.
REALTORS® listed 811 residential properties in K-W and area last month, a 22.9 per cent increase compared to July of 2016. While inventory levels continue to be low at just two months of inventory at the end of July – supply is up from where the measure has stubbornly stayed at just one month or less for the past 11 months. The number of months of inventory represents the time it would take to deplete current inventories at the current rate of sales. The long term average of months of inventory for KW and area is three and half months.
“The tight supply in the market continues to favour sellers; however the market seems to be shifting towards more balanced conditions,” says Craig. The average days on market in July was 22, compared to 26 days a year ago. On a month to month basis, it took six additional days on average from list to sale date in July compared to June.