August 2017 Market Report
Confidence is slowly creeping back into the market.
We saw the Real Estate market peak in April and then pull back over the last 4 months. The pull back has resulted in the average home price dropping by about 14%. This pull back is healthy as the previous pace at which prices were rising was unsustainable. The pull back is also seasonally driven as can be seen in the graph below by the price dips in late summer and then the subsequent rise into the winter and spring. I would expect prices to bottom out and start to rise in the next month or two.
August saw 483 sales which is right in line with the 5-year average. It is 19.2% lower than last year. Year-to-date 4,876 homes have been sold in KW which is 3.7% above last year at the same time.
Here’s what sold:
286 Single detached homes (down 18.8%)
105 Condominiums (down 30.9%)
50 Semi-detached (up 25%)
32 Freehold townhomes (down 34.7%)
AVERAGE PRICE IN AUGUST: $441,992 (UP 10.1% VS August 2016)
Here is what happened to prices:
$519,910 single detached (up 5.9%)
$294,787 apartment style condo (up 26.5%)
$338,191 townhomes (up 13.4%)
$351,233 semi-detached (up 17.3%)
The long run picture for real estate is up!
Things can get choppy, shoot like a star and fall through the floor – but over time the trend is up. We can never predict or time the market with absolute accuracy. We can take advantage of trends by being flexible with our time frames to ensure when you eventually do sell that the market is higher than when you purchased: Buy low, Sell high.