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Kitchener-Waterloo Real Estate Market Report May 2018

May Market Report

With a new month upon us, it’s time for two things: it’s time to look ahead to the month ahead and enjoy the warmth of the sun now that winter seems to finally be behind us. But perhaps more importantly, it’s time for another edition of the WRX Property Group Monthly Market Report! In this May edition of the Monthly Market Report, we will be looking back at what went on in Kitchener-Waterloo real estate this April.

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Overview

The Kitchener-Waterloo real estate market in April 2018 made two things clear: sales and activity were up from last month, but down from last year. That is to be expected, though, because April 2017 was an incredibly active month, with record-breaking numbers. Indeed, 2016 and 2017 have recorded the two highest total sales stretching years into the past, by a significant margin. However, it should be noted that 2018’s sales numbers, though overshadowed by 2017, are actually on the high end of the spectrum over the last ten years: the fourth highest overall. Let’s dive into the numbers themselves, but stay tuned after for a quick assessment at the end.


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Sales by Type of Home

Looking at Kitchener-Waterloo and the surrounding area, there were a total of 616 residential property sales processed through the local MLS System in April 2018. Of these, 343 were detached homes (down 30.7 per cent from April 2017), which sold for an average price of $569,159 (down 4.2 per cent from April 2017); 185 were condominium units, whether apartment-style, townhome, or otherwise (an increase of 12.8 per cent from 2017 – the condo market continues to grow); 41 sales were semi-detached homes (a decrease of 22.5 per cent); and 46 were freehold townhouses (down 13.2 per cent from last year). If you need to verify any of these terms, feel free to check out WRX Property Group’s helpful Common Types of Homes for Sale in Kitchener-Waterloo online compendium. Apartment-style condo units sold for an average of $296,958 (up 10 per cent from last year); townhomes averaged $386,082 (up 2.5 per cent from 2017); and semi-detached homes sold for an average of $402,842 (down 3.3 per cent). The overall average sale price for Kitchener-Waterloo residential properties in April 2018 was $478,578 (down 6.6 per cent from last year).

 

Waterloo West

In Waterloo West, April was a notable improvement over March in terms of homes sold (a common theme this month). Specifically, there were 121 homes sold in Waterloo West in April 2018 versus 102 homes sold in Waterloo West in March 2018. The average sale price went down to $505,531 in April from $535,979 in March. The average price per square foot went down correspondingly, from $332 in March to $327 in April. Finally, there was a slight increase in average number of days required before a home is sold: it was 23 in April, up from 20.

Waterloo East

Waterloo East is the only Kitchener-Waterloo quadrant that had fewer sales this month than last; but it was a very slight drop. There were 71 homes sold in Waterloo East this April versus 72 in March. The average sale price was $480,291 (down from $519,669). Interestingly, the average price per square foot climbed to $341, up from $332 in March (the two factors are linked, but they don’t necessarily increase or decrease simultaneously – it just depends on the types, and sizes, of homes being sold). The average days to sell was 19, down from 20 in March.


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Kitchener West

As is so often the case, Kitchener West absolutely dominated the Kitchener-Waterloo real estate market in terms of sales. With a total of 298 homes sold in April of 2018, it was again the most active quadrant by far. It also underwent fairly impressive growth in terms of sales: March’s total in Kitchener West was 242 – that’s over a 23% increase! The average sale price here was $457,881, up from March’s average of $443,693; the average price per square foot was $320, up from March’s average of $313. As in Waterloo West, there was a slight increase in average number of days to sell: 22 in April as opposed to just 20 in March. Still, these are very fast sale times, compared to months past.

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Kitchener East

Last but not least, it’s Kitchener East! The number of homes sold increased to 72 in April 2018, up from 69 in March 2018. The average sale price underwent a greater shift than any other quadrant: April’s average of $445,792 was a full $43,711 less than March’s average of $489,503. With lower numbers overall, one might view Kitchener East as an easier market for new buyers to tap into. The average price per square foot here was $332, down from $341. The average number of days required to sell a home went from an impressive 17 in March down to an incredible 15 in April: just over two weeks!

 

Overall

To wrap up our comparison of April 2018 with March 2018, there were an additional 78 homes sold this month; the average sale price was $11,457 lower; the average price per square foot was $3 more; and the average number of days required to sell increased by one. Now let’s look at April not in comparison to the month before, but to the year before. April 2018’s total number of homes sold in Kitchener-Waterloo was 562, which is just over 100 less than April 2017’s total of 665 (as noted, though, it’s tricky comparing to 2017, as it was literally a record-breaking year for Kitchener-Waterloo sales). The average sale price dropped somewhat significantly as well: in April 2018, the average sale price was $469,423 versus $500,838 in April 2017. The average price per square foot was fairly steady, dropping to $326 from $330 in 2017. The average number of days required to sell increased to 21 in April 2018 up from a somewhat astounding 11 days in April 2017 (it was quite a month).

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Wrapping Up

Looking at the numbers, there is still much to be excited about in the bustling Waterloo Region and its real estate market. One remaining issue is a shortage of listings – particularly listings of properties under $500,000. Indeed, despite 71% of April 2018’s residential sales being priced below $500,000, more than half of the homes listed on the local MLS are over that price. Factors like this scarcity of homes with lower price points, and the newly-implemented mortgage stress test (which makes higher-priced homes more difficult to qualify for a mortgage), mean that demand – and consequently, competition – for these lower-price homes will likely remain high.

If you’re looking to buy a home in Kitchener-Waterloo, or you want to sell your home in Kitchener-Waterloo and would like it listed on the local MLS – WRX Property Group would love to help! Please don’t hesitate to contact us if you have any questions.

Written by Will Kummer

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