admin | Oct. 11, 2016
The trend continues as the KW area continues to experience high demand for homes! MLS listings are down by 51% to 815 active listings at the end of the quarter as properties are being bought within days of being listed. This doesn’t indicate that there are fewer homes being listed than in the past – in fact, at the end of September, we recorded 5,241 properties sold year-to-date; we have never before broken through the 5,000 mark at this time of year. At the same time last year we were sitting at 4,456 properties sold. Sales are strong in 2016!
September also saw a record for the month with 540 homes sold. This is an increase of 29.2% over September last year. The average selling price of homes in the KW area in September was $397,722.
What does this mean for prices? When demand is strong and outstrips supply, prices rise as more people chase the homes that are for sale. Sellers are receiving multiple offers on their homes and getting prices above their list price in most instances. Sellers and their agents are confident and are comfortable waiting for a great price for the homes that they are selling – there are no deals to be had. We are also seeing homes listed at unwarranted prices, however, these over-priced homes are also being snapped up. The buyers are coming from markets where home prices are out of reach. The average price of a single detached home in Toronto is now at $1,300,000. The average price of all types of properties in Toronto is $755,755! The KW area is a relative bargain for these buyers and are at a price point where mortgages are being approved. There is also the possibility of an interest rate hike and tougher rules for mortgages are around the corner – these factors also drive buyers to act now and make a purchase to lock in at historically low rates and avoid the stricter mortgage rules. Another thought is that the devaluation of the yuan (Chinese currency) is driving real estate prices up around the world in an attempt by the Chinese to avoid the devaluation of their wealth. We are seeing a large number of Chinese buyers in the KW market. When there is a possible 30% devaluation of your money at home in China you look for places to park your wealth outside of the country and in a different currency – paying a little more for a home in KW is a good bet to protect your savings.
In the KW area, the average price for all properties has risen 9.7% from last year to $380,692. The average price of a single detached home is now 11.8% higher at $443,554. The apartment-style condo average price has risen 4.5% to $231,187. The average price for a townhouse is now $281,709, 8.3% higher and the average price for a semi-detached home is 8.5% higher at $293,167.