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Kitchener-Waterloo Real Estate Market Report June 2018

June 2018 Market Report

 
Hello, and welcome to the WRX Property Group blog! It’s time, once more, for a brand new edition of the WRX Property Group Monthly Market Report. At the start of each new month, we take a moment to look back at what happened in the Kitchener-Waterloo real estate market in the previous month, as well as placing the data in a historical context.


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Overview

 
If you take away one thing from the Kitchener-Waterloo real estate market in May 2018, it’s that it was quite active. There was much buying and selling of homes throughout the Region, and just as April had more activity than March, now May has even more activity.
 
However, like every month this year, May 2018 has been put in the tough position of following the record-breaking year that was 2017. 2017 was an incredibly active year – so much so that its comparisons with 2018 need to be taken with that context in mind.
 
Yes, May 2018 had notably lower overall MLS home sales compared to May 2017 (a 15.3 per cent decrease), but it did have 12.5 per cent increase over April 2018. In terms of overall sales, May 2018 had 692 residential properties sold, as opposed to 817 in May 2017.
 
But highlighting the anomalous quality of 2017: the ten-year average of Kitchener-Waterloo and area home sales in May is 625. So when you look at the bigger picture, accepting that 2017 broke all sorts of records, 2018 is looking really good.
 
Compared to the ten year average of 625 home sales, May 2018’s total of 692 is a respectable 10.7 per cent increase.
 

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Sales by Type of Home

 
First off, if you ever want to clarify what a certain real estate term refers to, you can check out our Common Types of Homes for Sale in Kitchener-Waterloo article. Now, for May 2018’s specific sales breakdown, we’ll be comparing the numbers to May 2017’s specific sales, so remember that 2017 was a record-breaking year.
 
In terms of residential sales, May 2018 saw 682 of the following property types sold, and for the following prices: 414 detached homes sold (down 15.7 per cent from May 2017) for an average price of $572,206 (down 3.4 per cent from May 2017).
 
In terms of condominium units of various shapes, sizes, and styles (for example, units in semi-detached homes, townhomes, and apartment buildings), there were 169 sales (down 7.1 per cent from May 2017); apartment-style condominiums’ average sale price was $301,052, which was a 2.7 per cent increase from last year.
 
Sales also included 46 semi-detached homes (a 28.1 per cent decrease from 2017), for an average price of $393,616 (up 2 per cent from May 2017), and 53 freehold townhomes (down 24.3 per cent from last year), which sold for an average price of $365,715 (up 1.3 per cent).
 
For all residential property sales in May 2018, the total was up 12.5 per cent from the previous month (April 2018), but down 15.3 per cent from May 2017. Alright, now let’s slice Kitchener-Waterloo into four quadrants and analyze those.

 

 

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Waterloo West

 
The western quadrant of Waterloo sets the tone for what’s to come: all but one quadrant saw an increase in average sale price, and all but one saw an increase in total homes sold. As for Waterloo West, there were 144 homes sold in May 2018, up from 121 in April 2018.
 
The average sale price was $537,399, up from $505,531 in April; the average price per square feet climbed to $333 up from $327. The one number that went down for Waterloo West was a good one: the average number of days to sell was 22, down from 23 in April.
 

Waterloo East

 
Waterloo East saw 91 homes sold in May 2018, an impressive 28% increase from the 71 homes sold in April 2018. The average sale price was $503,370, also up from April’s average of $480,291. The average price per square foot actually reversed course: in May, the average was $338, whereas in April it was $341 (this variable can mean more smaller homes, or fewer larger homes, were sold, as the average price per square foot tends to go down as the home’s overall size goes up).
 
There was a slight increase in average number of days to sell: May 2018 took an average of 21 (three weeks even), versus just 19 in April.
 

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Kitchener West

 
Every Market Report, it’s to be expected that the Kitchener West quadrant will be the site of the most sales (often by a substantial margin). There’s much growth and development in this part of the city, and many families are looking to buy homes in this part of Kitchener-Waterloo.
 
Between March 2018 and April 2018, there was a 23% increase in sales of homes. However, between April 2018 and May 2018, there was actually a decrease in sales of homes: last month saw 258 homes sold in Kitchener West, versus 298 in April.
 
It’s still an incredibly hot market, though. The average sale price went down to $443,162 from $457,881 in April; and the average price per square foot went down to $316 from $320. The average number of days to sell also went down: just 20 days, down 2 from April’s 22 days average.
 

Kitchener East

 
The Kitchener East quadrant holds the record for biggest leap forward in terms of homes sold: there were 121 homes sold in May 2018, compared to 72 in April 2018. That’s an incredible 68% increase! The average sale price was $436,826, down from $445,792 in April; the average price per square foot was $318, also down from April’s average of $332.
 
Finally, there was an increase in the average number of days before sale: 18 in May 2018 versus 15 in April.
 

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Overall

 
In all of Kitchener-Waterloo (the cities and not the surrounding Townships), there were 614 homes sold in May 2018, compared to 729 in May 2017. The overall average sale price was $472,398, compared to $487,724 in 2017; the overall average price per square foot was $324, compared to $321 in 2017.
 
The overall average number of days to sell also increased: May 2017’s average was 13 days, whereas May 2018’s was a (still respectable) 20 days.
 

Wrapping Up

 
There is still strong demand for homes in Waterloo Region, and with the possibility of an increase to interest rates in July, people are motivated to buy. 2017 (and 2016) had an incredible amount of sales, but 2018 is actually faring quite well for itself compared to ten-year averages, staying well ahead of the curve.
 
Written by Will Kummer
 
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