admin | Jun. 8, 2016
KW May Residential Sales
The Real Estate market in Kitchener-Waterloo sees the trend continue with a record May 2016!
752 properties sold in May – setting a record. This represents a 19.6% increase over May 2015 and well above the 5-year average by 27.7%.
Year to date sales have also set a record with 2776 homes sold in the first 5 months of 2016. This represents a 19.2% increase over the first 5 months of 2015 and a 21% increase versus the 5-year average.
We definitely continue to see high demand for homes in the region. With low interest rates, migration from more expensive markets East of KW, job growth in the area, foreign buyers and investors driving purchases.
Also, with 5 months behind us in 2016 we are now able to determine that one of the main factors contributing to increased prices in KW is the lack of inventory on the market. At the end of may we have 1283 active listings on KWAR’s MLS system. This is 26.1% lower than the same time last year.
High demand for homes in KW with a lack of properties to buy indicates a Seller’s market with competition for the short supply of homes on the market causing Buyers to have to compete to win homes – thus driving up prices.
May’s sales included 474 single detached homes (up 15.6%) and 166 condominium type units (up 37.2%) which include any property regardless of style (ie. semis, townhomes, apartment, detached etc). Sales also included 47 Semi-detached homes (down 11.3%) and 56 freehold townhouses (up 27.3%).
The average sale price of all residential sales increased 7.3% to $378,248 compared to May 2015. Single detached style homes sold for an average price of $438,708 an increase of 9.8% compared to last year. The average sale price for an apartment style condominium was $221,073, a decrease of 1.2%. Townhomes and semis sold for an average of $277,355 (up 1.1%) and $296,751 (up 10.2%) respectively.