Waterloo Region Market Update – July Edition
It’s been difficult to forecast where the market is headed in such a volatile state. June, however, like the warmth and promise of the summer sun, comes in showing gains almost across the board.
People have feared the worst, but as we’ve seen, home value has remained stable, if not rising, even though sales numbers saw a drop due to the lockdown in April and May. Now, in June, we saw some positive results with the number of homes sold shooting up 57.6% from May.
“After a pandemic–induced delay to the typical spring market, home sales sprung back to life in a big way in June,” said Colleen Koehler, President of KWAR. “As the Waterloo region entered stage two of reopening, we saw many buyers and sellers resuming their home buying and selling plans.”
The average days to sell in June was 16 days. 673 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in June 2020, according to KWAR. An increase of 2.1% compared to June 2019 and an 8.5% increase compared to the previous 10-year average for June.
- Detached homes: 413 sold – 1.7% increase (from June 2019)
- Condominium Apartments: 67 sold – 36.7% increase
- Semi-Detached Homes: 59 sold – 31.1% increase
- Townhouses: 134 sold – 15.7% decrease
The Average Sale Price Of All Residential Properties Sold In June
“I expect for the remainder of 2020 will see the number of home sales returning to near historical levels,” says Koehler. “There will be some catching up to do in the coming weeks, but I don’t think you will see the market taking a hiatus this summer.”
- All residential properties: $601,285 – 12.8% increase (from June 2019)
- Detached homes: $698,736 – 13.2% increase
- Apartment-Style Condominiums: $372,392 – 13.2% increase
- Semi-detached Homes: $504,816 – 17.3% increase
- Townhomes: $457,851 – 11.4% increase
New Home Listings in June
June finishes in style, beating the last 13 months, as the most added listings since May 2019. It’s also an increase of 1.9% over the previous 10-year average for June.
- There were 920 new listings added to the MLS® System in KW and area in June.
- The total number of homes available for sale in active status at the end of June was 640, a decrease of 28.7%.
- The absorption rate remains low, at 1.4 months, a decrease of 22.2% compared to last year. (The previous 5-year average was 2.22 months.)
Safety First / Digital First
Koehler advises buyers to speak with their Realtor about the digital tools they use to minimize the need for direct physical contact. We must ensure that all of Health Canada’s guidelines are in place to reduce the risk of transmission. As we have previously stated, we have been a digital-first Real Estate Brokerage from day one, with the tools and experience to help you.
- 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.
What’s Ahead for the Real Estate Market?
The Bank of Canada is expected to keep its key interest rate on hold at 0.25%. As we mentioned last month, this is great news for home buyers looking to take advantage of lower mortgage rates. Lower mortgage rates can bring down monthly payments or increase a buyer’s purchasing power, as well as making it easier to qualify for a loan.