Waterloo Region Real Estate Market Update – May Edition
Last Updated on May 20, 2020
As we continue to lead the way through this new landscape for buyers and sellers, we can see how the market is reacting to the daily changes. We are starting to see some restrictions lifting and many industries are developing strategies to prepare for the reopening of businesses in the coming months.
As mentioned in the previous edition, these changes have been fluid so I’m here to provide you with state of the market updates every month, to help keep you in the loop on what’s currently happening in the industry.
The Average Sale Price Of All Residential Properties Sold In April
While sales in April saw drops of 61% and higher compared to previous years, with everyone doing their part to flatten the curve, and everyone doing their best to self-isolate, the average cost of residential homes saw an increase across the board. (The average sale price is calculated based on the total dollar volume of all properties sold.)
- Detached homes: $657,042 – 7.3% increase
- Semi-detached: $491,816 – 13.3% increase
- Townhomes: $406,463 – 0.4% increase
- Apartment-style condominiums: $367,230 – 8.1% increase
Home Value Has Remained Stable
For a few years now it has been a seller’s market, with buyers competing over a limited number of listings. Now for the first time in a while, there is nearly a balance to the sales-to-new-listings ratio of 54% in April. Many expected the value of homes to depreciate dramatically, but that has not been the case, as the market is showing that prices have remained stable.
- The average days to sell in April was 19 days, compared to 21 days in April 2019.
Fewer Homes Listed in April
Koehler notes that most REALTORS® are advising sellers to hold off on listing their properties until after the state of emergency has been lifted. However, this is not an option for every buyer and seller, which is why real estate was included as an essential service. This has created a surge in Realtors using alternative methods, such as leveraging technology to show properties. As Koehler mentioned in the In-Market Update Report on KWAR, “In addition to health safety measures, our members are quickly adapting to new ways of showing property by conducting virtual showings for their clients, and other innovative practices.”
- There were 417 new listings added to the MLS® System in KW and area, a decrease of 54.8% compared to April of 2019.
- The total number of homes available for sale inactive status at the end of April was 571, a decrease of 36.6% compared to April of last year.
- The absorption rate sits at 1.2 months, a decrease of 36% compared to last year.
We’ve Been a Digital First Real Estate Brokerage from Day One.
We have the tools and experience to serve you using the latest technologies:
- All of our listings include a full online 360-degree virtual tour, so you may continue enjoying browsing properties from the comfort of your home.
- Electronic signature support for all documents.
- Our online move-in support platform.
- A private property web portal for Buyers.
- Online and video conferencing tools to enable Virtual Meetings.
Ontario Real Estate Forecast for 2020
The Kitchener Waterloo housing market is expected to favour sellers, driven by low inventory and multiple offers scenarios. Sale prices are expected to increase by 7%. With quarantine in effect, the volume is expected to decline; however, with population growth and strong employment in the region, the demand is there and will provide a boost in the housing market in 2020. Virtual tours and home photos have replaced multiple showings as the market adjusts to the current situation.
We can see that the market is still alive and there are many ways we can move forward and help both buyers and sellers adjust to the digital environment and all the tools at our disposal. With the limitations in place, we are seeing new innovations and more businesses moving forward into the digital landscape, which will, in turn, offer new avenues and opportunities in the future.