This post is late and I apologize!
The market seems to have been delayed this year, seemingly caused by a winter that just won’t quit! Listings have been pushed back by a month or two as Sellers have had to grapple with questions about the overall real estate market – due in part to so much news about trade and credit and economic cooling. Also, trying to time listing given the colder than usual weather. Into May we have seen more homes hit the market as evidenced by the number of for sale signs littering our neighbourhoods that seem to have sprung up in the first weeks of the month as Sellers have decided to quit waiting.
April saw 913 residential properties listed, a decrease of 6.9% versus the same month last year. There were 623 Sales, up only about 1.1% and active listings at the end of the month were sitting at 884, down 6.1%. These numbers are evidence of the listing delay we have been contending with.
Here is a breakdown of the April Sales:
Single detached homes: 394 Up 15.2%
Condominiums: 75 Up 1.4%
Townhouses: 113 Down 28.9%
Semi-detached homes: 41 Unchanged
The lack of listings created further constraint on supply that has caused our average home price to break to new highs. I was curious to see if we would make a new April high this year – something we accomplished. The next question is whether we will see May’s average price go even higher possibly due to the slight delay in our normal spring Real Estate season. We’ll see soon enough.
Here is what the average prices did in April:
Average home price: $529,800 Up 10.9%
Single detached price: $611,803 Up 7.6%
Apartment Condo price: $339,426 Up 14.3%
Townhouse price: $405,013 Up 5.3%
Semi-detached price: $433,949 Up 7.7%
Currently, Canada’s unemployment rate is the lowest the Country has seen in about 40 years and employment rose by a staggering 106,500 jobs in April. The economy seems to be healthy. Interest rates are low again. And as can be seen in the above graphic we have just hit a record Average home price in KW.
So, are we all clear? I am still cautious. I think quality rental properties with good tenants and rent income will always be a stable and relatively safe investment. Owning and living in your primary residence where you have accounted for the two major risks: interest rate increases that inflate your monthly mortgage payment and dips in home price appreciation continue to be prudent planning.
There is the saying: It is always darkest before the dawn. Makes sense I guess, but what really matters is when it’s going to get dark. Sometime the sun seems like it’s taking forever to set and it’s a slow fade. Let’s make great decisions, build in buffers, plan for the unknown, and take advantage of opportunities so that we are prepared for when the sun finally sets.
Fingers crossed we get some sun soon!
Happy Real Estating!