It’s officially summer, and along with the temperature rising the real estate market has also been heating up. Demand is up, we are still experiencing low inventory, and it seems like the spring market has officially started (even though it’s technically summer).
In June 2020 we saw 580 residential properties sell, compared to 357 in May of 2020, and 589 in June of 2019. WOW! That’s a huge recovery compared to what we were seeing in the last few months due to COVID-19.
Another way to see the increase in demand is by observing the number of showing requests on homes for sale. Here’s a quick look at viewing requests for homes in Ontario:
With the government loosening up some of the restrictions, and the real estate industry coming up with creative plans to keep everyone safe, the buyers are back in the market at full force. In fact demand seems to be higher than at the same time last year. The only problem? We still don’t have enough homes available for sale.
Does this mean Kitchener-Waterloo real estate prices are going up?
The average sale price across all residential properties in June 2020 was $593,027 which is a year-over-year increase of 13.16% compared to the June 2019 average of $524,022, and a 7.4% increase compared to May 2020 ($551,753). The average sale price for detached homes in June 2020 was $695,978. Up 13.5% compared to $613,146 in June 2019. Prices are up, and they are up significantly compared to last year! We are also seeing that the market has bounced back significantly from the impacts of COVID-19. What this means for homeowners is that if you’ve been thinking about selling, right now is the time to do it. With inventory being so low there will be a number of buyers competing for your home.
The average number of days to sell in June 2020 was 15, compared to 19 in June 2019. So once again, homes are selling fast, and the main driving force is the increase in demand and the persistent low supply of homes.
Below is a line of best fit for average sale prices of detached homes in KW:
The line appears to be sloping upwards indicating to us that the price trend is increasing. This is a positive change compared to the neutral trend we were saying the last few months.
Taking a look at semi-detached homes:
Very similar to what we saw with detached properties. Sloping upwards indicating a price increase trend.
Taking a look at townhomes:
Townhomes are also showing an upward trend, indicating prices are increasing.
As we can see from all of the details above, the KW market has bounced back from the COVID-19 impacts and appears to have an upward trajectory in terms of prices. As has been the story for the last year we are plagued by low inventory for homes, meaning we are in desperate need of homes for sale.
While this is great news for the local market, it’s still important to proceed with caution. Practice safe social distancing, wear face covers as much as possible, and avoid unnecessary trips by only visiting homes which are very likely to work for you.
If you are curious about your home’s value you can check out our instant home evaluation tool by filling out the information below:
Thanks for your time!
Written by George Dmitrovic