KW Real Estate Report for June 2019
The first half of the year has wrapped up and our KW market continues to show strength. We did start the year will strong sales in those properties priced under $750,000. But into the second quarter strength came back in the higher end market and made up for some of the slack in the first months of the year. In June our average home price stood at $533,619 – an increase of 8.9% vs the same month in 2018. This number was slightly lower than May, but we are definitely sitting at all time highs as can be seen in the chart below:
All Residential homes: $533,619 UP 8.9%
Single Detached: $618,186 UP 7.9%
Condos: $332,716 UP 4.4%
Townhouses: $411,126 UP 10.7%
Semi-detached: $430,427 UP 9.9%
The Median price of homes sold also keeps moving up, rising to $494,500: UP 9.9% This move in the median price is proof of the demand in the lower price ranges that are causing homes to appreciate quickly. These home prices are being driven up by competition where homes below $400,000 are almost impossible to find making the only option apartment condos.
888 homes were listed in June, an increase of 4.3% vs last year. And at the end of the month the listing balance stood at 890, a decrease of 10.8% vs the end of June last year. We are seeing more listings but demand is strong and keeping active home numbers down. The average number of days on the market also dropped from 22 to 20.
In June there were 658 Sales, up 8.8% vs the same month in 2018.
404 Single detached homes sold UP 8.9%
50 Condominiums sold DOWN 28.6%
159 Townhomes sold UP 27.2%
45 Semi detaches homes sold UP 15.4%
For the first 6 months of the year 3154 homes have sold, up 1.4% vs the first 6 months last year.
All of the June data is very positive. Perhaps some reasons for the strength is the delayed seasonality of the spring market caused by the cold weather we saw sticking around this year. I think the slim supply at the beginning of the year helped keep the market rolling despite the high mortgage rates we had in place. The weather warmed up, supply started coming on line, and what really helped was an almost 1% dip in interest rates to below 3% again. Great stuff! I really can’t see low rates going away. With cheap money the consumer in North America keeps buying stuff keeping the economy strong. And this global low inflation environment allows rates to stay low which helps the consumer to borrow to spend and is also keeping the cost of living constant. It really is a confusing economic environment but it’s working!