KW November Real Estate Market Report
So how did our local real estate market perform last month? In the month of November there were 425 sales through the MLS system. This is a decline of 20.1% vs the same time last year, but is in line with the 5-year average of 424 sales.
New listings in November are up 22.6% with 601 new listings hitting MLS in the month.
Active listings at the end of November totalled 740 – up 50% versus the end of November last year, but still only about half of the 5-year average at 1,318.
What does the above mean? New listings are up, while sales are down resulting in more homes sitting on the market. This is all compared to November last year when the real estate market was in a frenzy.
Here is a breakdown:
246 Detached homes sold: down 30.9%
99 Condominium towns/semis/apartments sold: down 15.4%
52 Freehold semi-detached sold: up 67.7%
27 Freehold townhomes sold: down 3.6%
The average home price dipped to $445,363. Usually I would be a little concerned, but I believe the contributing factor is a large number of sales under $450,000 caused by a rush to buy homes before the new mortgage rules. Here is a link for a refresher on the new rules: http://www.moneysense.ca/news/what-the-new-mortgage-rules-mean-for-homebuyers-in-2018/
November 2017 Average prices in each category:
Detached homes: $515,721 UP 8.9% vs Nov 2016
Apartment condos: $277,660 UP 30.7% vs Nov 2016
Townhomes: $369,678 UP 19.3% vs Nov 2016
Semi-detached: $376,677 UP 15.1% vs Nov 2016
Apartment-style condos are being accepted and integrated into the KW culture. The downtown areas are becoming more vibrant, amenities are more readily available, and the idea of “walk everywhere” is being embraced. The Victoria Park Condo Horseshoe is a hot area with end users and investors acknowledging the current and future prospects of this area. Downsizers can’t downsize house to house anymore – it is house to condo. Investors can’t find homes at a price where major renovations aren’t needed and rents that can cover costs, so they are turning to low maintenance condos. First-time home buyers can’t find suitable homes under $400,000 so they are turning to condos. The price, the location, the ease of maintenance, along with future prospects and appreciation of apartment-style condos is driving this real estate class in a big way.