Highest Number of Home Sales Recorded in First 6 Months of the Year!
We are six months into 2016 and the records keep piling up. Year-to-date we have seen an 18% increase in sales over the same period last year and we are 22.8% stronger than the five-year average. There have been 3,519 homes sold so far this year which means that more than 530 additional homes have been sold this year than usual. With the lack of inventory on the market and homes selling in multiple offers left right and centre there is no doubt that this number would be a lot higher if all of the Buyers out there had a place to buy.
June 2016 is ranked as the most active on record with a 13.1% increase in sales versus 2015 and a whopping 29.7% higher than the five-year average. June’s sales included 485 single detached homes (up 13.6%) and 145 condominium type units (up 2.1%) which include any property regardless of style (ex. semis, townhomes, apartment, detached etc.). Sales also included 46 Semi-detached homes (up 9.5%) and 54 freehold townhouses (up 42.1%). The average sale price of all residential sales in June increased 11.2% to $390,144 compared to June 2015.
And all of this means that there is tremendous upward pressure on prices. Townhouses and Semi-detached properties are up $30,000 to $50,000 versus last year. Homes $400,000 to $600,000 are being snapped up throughout Kitchener/Waterloo. We are seeing tons of activity in the higher priced homes over $1,000,000 as well. These homes can sit for years. We sold a $2.5M home in weeks. A $1.5M home in Waterloo went for above the list price is 3 days!
However, it is a bit frustrating for Buyers. Having to make decisions about homes within hours of seeing a property, deciding on a price that makes sense, and often times going in firm (no conditions for financing or inspection), and losing a home to a higher bid. It is very important to have a competent Real Estate agent in your corner. Someone that can provide insight into the value of the home, quality of construction, possible repairs, future appreciation potential, schools, amenities and of course how to actually negotiate a winning offer.
In this hot market it can be hard to keep our emotions under control. Making a home purchase is a very important and often life changing decision. Even when time is limited and excitement is abound, it is prudent to take a moment to just quickly ask yourself and your loved ones if the decision is the right one. If it isn’t right, there will always be more houses and the next one may just be perfect.