Sales volume drops about 12 per cent year-over-year
Average house prices spiked in Kitchener and Waterloo last month, even as sales volume dropped.
The Kitchener-Waterloo Association of Realtors said the average sale price of all residential properties rose by 18.7 per cent year-over-year, to $566,866. Detached homes rose 14.2 per cent to an average of $660,071.
The median price for all properties rose 17.6 per cent to $516,500, while the median price for a detached home climbed 14.7 per cent to $596,250.
The average price for apartment-style condos rose 13 per cent to $342,561, while townhomes rose 22.4 per cent to $443,633 and semis saw a modest 3.5 per cent increase to an average of $431,635.
Sales were down 12.4 per cent compared to the previous year, with 424 properties sold last month.
“Home sales were slower in November,” new association president Colleen Koehler said in a news release. “However, looking at the last six months of activity combined, unit sales are up four per cent over last year, and trending above average.”
Low inventory continues to put the advantage in the hands of sellers. There were 553 homes available at the end of the month, down 34 per cent from a year ago and far from the previous 10-year average of 1,252 listings.
Months of supply — the time it would take to sell the current inventory at the current pace — is down to 1.1 months, more than 35 per cent lower than last year. The prior 10-year average for November stood at 2.68 months. Many analysts believe six months’ supply indicates a balanced market.
Realtors listed 432 properties last month, a year-to-year drop of nearly 28 per cent, and down 17.5 per cent compared to the previous 10-year average.
“People moving to this area from other places is continuing to be a significant factor for our market,” Koehler noted. “These buyers are selling wherever they are coming from and buying here, removing homes from the inventory but not putting anything in.”
Last week, market analysts told an association breakfast that prices are expected to continue to rise next year as inventory remains low — especially with an influx of newcomers making the region one of the fastest-growing places in the province.