January 2018 KW Real Estate Report
Here goes my first Real Estate Market Report this year. The first month of 2018 is behind us. The free market continues to be successfully burdened by governance. Thank you regulation. Thank you rules. Thank you stress tests and taxes. Thank you Justin and Kathleen. Thank you Trump…why not, when we are sarcastically thanking stuff.
The Real Estate market in KW has been affected but, everything considered, it is resilient and is chugging along nicely. Not crazy – The number of times I heard “this crazy market” last year has filled my “crazy” tank for life! Not crazy is good. When things get to the “crazy” point you actually start to worry a little. After a crazy night there is usually a hangover. After Bitcoin hits $20,000, it retraces to $6,000. When stock market charts look like shooting stars, they fall back to earth.
Our KW Real Estate market had a nice run up and took a breather at the end of last year. A well-deserved rest. We are still a bit stiff, but January has shown us that we can expect a continued move up at a sustainable pace. The numbers are showing strength vs the 5 year average, but are not in spring 2017 crazy mode.
There were 270 residential sales in January. Down 18% vs January 2017.
149 Detached homes sold: down 23.6%
70 Condominiums sold: down 11.4%
27 Semi-detached homes sold: down 18.2%
22 Freehold townhouses sold: Up 10%
Compared to January 2017, the average home price in the KW area is up 9% at $458,750
Detached home average price: $554,857 up 10.7%
Apartment average condo price: $246,821 up 4%
Townhouse average price: $371,095 up 14.5%
Semi-detached price: $388,974 up 9.7%
If you read my last report, I mentioned that the median price was a good indicator of the price range where most of the home sales were taking place. The December median price was $405,000 – the hypothesis was that the looming mortgage rule changes for January 1st would cause a bit of a rush in the lower price range as those buyers would likely be more affected by the rule change, and that the greater number of buyers at a lower price range would affect the average sale price. In January, the median sale price increased to $431,143… you think you’re pretty smart Drew, don’t you! Well, I think that kinda makes me Mr. Science because I think my hypothesis was right! Not really rocket science, but the real estate market is playing out as anticipated.
Real estate inventory is low and houses are selling in multiple offers. However, we do have headwinds in the form of higher inflation and consequently interest rate hikes. We don’t know what a NAFTA breakdown would do and we still need to see how the higher minimum wage will affect the economy and small businesses.
Happy Love Month