Eric | Aug. 7, 2020
The reality is that when there is nothing else to do and you’re stuck in your house, you start with buying from Amazon, Wayfair, Apple, and then move on and buy something from Realtor.ca.
734 residential properties sold in July – an increase of 25.7% vs July last year. The increase is large but is definitely a result of the delayed Real Estate seasonality this year-justified given the soft numbers since March. In July, 888 new listings were added to MLS. There were 592 active listings at the end of the month – a decrease of 32.6% vs last year. People clearly had money burning holes in their pockets 😊
464 single detached homes sold – up 39.3%
65 Condos sold – up 3.2%
153 Townhomes sold – up 4.8%
52 Semis sold – up 23.8%
Homes are moving very quickly. The average days on market is 17, down from 22 days last year, and supply is at just 1.3 months.
With a move towards more people working from home – the ability to live away from the office has become a reality for many people. Why wouldn’t you want to live in a more affordable city with fewer people? Home prices in Kitchener-Waterloo are still about half of what they are in Toronto, and what better way to socially distance than to move to a larger lot in a less densely populated place? We are seeing more Buyers looking for single detached homes rather than apartment style condos and we are seeing more Buyers here from the GTA. The consequence of the above also apply to Sellers. Homeowners seem to be more tied to their homes than ever, as they work, educate, vacation and quarantine in their homes. It’s the reason you can’t find a pool company that isn’t back logged until 2022! There is a lot of upgrading rather than moving happening right now. When you couple the demand side with a short supply, you have a recipe for prices to soar, and wow, how they have soared!
The average price of all residential real estate now sits at $639,814 – up 22.8%
The average price of a single detached home is now $745,149 – up 21.4%
The average price of an apartment condo is $392,770 – up 15.2%
The average price of a townhouse is $465,756 – up 12.8%
The average price of a semi-detached home is now $522,872 – up 20.4%
Remember when you had to pay 3% or 4% for money! Those were crazy times! Now money can be borrowed at 2%. Money is almost free. It’s hard not to be compelled to borrow and spend – Especially if you buy an asset that will continue to appreciate. With Trillions being printed around the world it makes it tough to want actual money – there is always a risk of inflation when money supply increases. With the shocking increase in the price of homes – if it is any indication at all – inflation may be a concern this time compared to the last time we saw the money printing presses running at full tilt. It almost makes you want to buy crypto currency! Lol – I didn’t actually just say that.
It’s a weird feeling right now. Real Estate prices are a freight train. A 7 billion horsepower electric Elon Musk rocket to Mars freight train. The stock markets are that freight train on Trump steroids. Tech stocks are that Trump Musk Mars train on Incredible Hulk juice! It all seems breath taking during a time when the government is sending people money, small businesses are limping along, and unemployment is high. And then we have home price ups 22.8%! It this temporary? Or is this the start of a new credit infused world that no longer cares about the state of reality?
I don’t know how to pick the top of markets and I don’t know how to pick the bottom. But here are my top picks of how to make some decisions:
Wear a mask and maybe the new smile is a wink? – Lol, that would be weird.
Thank you for reading!!!
