Nearly 4,500 homes sold in Waterloo region this year, as sales reach new record in June
740 residential homes sold last month, representing a 10.1% increase over June 2020
Nearly 4,500 homes have been sold in Waterloo region for the first six months of 2021, the Kitchener-Waterloo Association of REALTORS (KWAR) said.
According to KWAR, the 740 residential homes sold through its multiple listing service last month set a new monthly high for June and represented an increase of about 10 per cent compared to June 2020, and a 13.6 per cent decrease compared to May 2021.
"The number of homes sold in the Kitchener-Waterloo area these past six months surpasses any previous six months of activity through our MLS system, KWAR president Nicole Pohl said in a release.
"Since the beginning of the year, we have reported 4,393 home sales in Kitchener-Waterloo and area, which is remarkable."
Pohl told CBC News that COVID-19 has helped people redefine what they're looking for in a home and prompted people to migrate to Waterloo region from other parts of the country.
All groups of people are buying
Meanwhile, Pohl said all groups of people are buying right now.
"We're seeing a lot of first-time home buyers who are feeling kind of pressured to get into the market and worried that if they don't do it now that they may not get into the market for a really long time," she said.
"We're seeing, again, because of COVID, people that are trading up. They've redefined home. They're realizing their home needs to be a little bit more than just four walls and a roof, they need space for a home office, they do need space for classrooms and potentially for gyms."
But not everyone is trading up, Pohl said, adding that some are downsizing as well.
One of the fastest-growing urban centres
Pohl said Waterloo has been touted as one of the fastest growing urban centres in Canada and it's expected that the uptick in the real estate sector will continue.
"We have, over the last three or four months now seen a stabilization in prices, which is really, really positive, not these crazy price increases every month, but that demand is still there," she said.
KWAR said total residential sales during this second quarter (April, May, June) are up 83.7 per cent compared to last year. On a year-to-date basis, they are up 65.7 per cent.
Total residential sales in June included 411 detached (down 0.2 per cent from June 2020), and 103 condominium units (up 51.5 per cent). Sales also included 74 semi-detached homes (on par) and 152 townhouses (up 14.3 per cent).
26.4% increase in home prices for June
In June, the average sale price for all residential properties in the Kitchener-Waterloo area was $759,115. This represents a 26.4 per cent increase over June 2020 and a 2.6 per cent increase compared to May 2021.
KWAR also shared the following:
- The average price of a detached home was $919,914. This represents a 31.9 per cent increase from June 2020 and an increase of 5.9 per cent compared to May 2021.
- The average sale price for an apartment-style condominium was $445,493. This represents an increase of 19.3 per cent from June 2020 and a decrease of 2.3 per cent compared to May 2021.
- The average sale price for a townhouse was $590,980. This represents a 29 per cent increase from June 2020 and a decrease of 1.9 per cent compared to May 2021.
- The average sale price for a semi was $647,918. This represents an increase of 28.3 per cent compared to June 2020 and a decrease of 1.8 per cent compared to May 2021.
Greatest challenge continues to be limited supply
Pohl said that while the real estate market has been "hot"since 2016, the reality is there's just not enough supply for the demand and this is putting pressure on prices.
"The greatest challenge of the housing market continues to be the limited supply of existing homes to purchase," Pohl said.
"What we could use right now is for more homes to get built to help meet the robust buyer demand, which continues to exceed supply."
There were 860 new listings added to the MLS system in the K-W area last month, a decrease of 6.6 per cent compared to June of last year, and a 5.4 per cent decrease compared to the previous ten-year average for June.
The total number of homes available for sale in active status at the end of June was 365, a decrease of 43 per cent compared to June of last year, and 73.9 per cent below the previous ten-year average of 1,400 listings for June.
The number of months of inventory was 0.5 in June, a decline from 0.7 months in May. Inventory has numbered less than one month since October. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.
The average number of days to sell in June was 11 days, compared to 17 days in June 2020 and a previous five-year average of 20 days.