Waterloo Region Real Estate Market Update – June Edition
Last Updated on July 13, 2021
Home Sales Continue to Break Records
In May, strong home sales continued as the Kitchener-Waterloo Association of REALTORS® (KWAR) once again posted a record-setting number of monthly home sales.
There were 854 residential homes sold through the Multiple Listing Service® (MLS® System) of KWAR last month, which was over double that of May 2020 (with an increase of 100.9 percent), and a 0.9 percent increase compared to April 2021.
“While last May home sales were restrained due to the pandemic, May 2021 was another extraordinary month of home buying and selling activity,” says Nicole Pohl, President of KWAR. “Prior to 2020, the previous 10-year average number of residential sales for May was 656.”
Total residential sales in May included:
- 485 detached (up 85.8 percent from May 2020)
- 106 condominium units (up 152.4 percent)
- 74 semi-detached homes (up 72.1 percent)
- 188 townhouses (up 138 percent)
The average sale price in May for all residential properties in the Kitchener-Waterloo area was $740,103. This represents a 30.4 percent increase over May 2020 and a 2.4 percent decrease compared to April 2021.
- The average price of a detached home was $868,990. This represents a 32.6 percent increase from May 2020 and a decrease of 3.4 percent compared to April 2021.
- The average sale price for an apartment-style condominium was $457,935. This represents an increase of 38.6 percent from May 2020 and an increase of 3.1 percent compared to April 2021.
- The average sale price for a townhouse was $601,987. This represents a 33.7 percent increase from May 2020 and a decrease of 1.8 percent compared to April 2021.
- The average sale price for a semi was $659,975. This represents an increase of 36.8 percent compared to May 2020 and an increase of 1.2 percent compared to April 2021.
The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $749,100 in May. This represents a 35.8 percent increase over May 2020 and a 0.4 percent increase compared to April 2021.
- The benchmark price for a detached home was $815,800. This represents a 35.8 percent increase from May 2020 and a 0.8 percent decrease compared to April 2021.
- The benchmark price for an apartment-style condominium was $373,700. This represents a 16.9 percent increase from May 2020 and a 2.1 percent decrease compared to April 2021.
- The benchmark price for a townhouse is $574,900. This represents a 49 percent increase from May 2020 and a 0.5 percent decrease compared to April 2021.
New Home Listings in May
There were 1,061 new listings added to the MLS® System in KW and area last month, an increase of 83.2 percent compared to May of last year, and a 2.6 percent increase compared to the previous ten-year average for May* (*calculated from 2010 to 2019 to adjust for the impact of the state of emergency on activity in May 2020).
The total number of homes available for sale in active status at the end of May was 448, a decrease of 20 percent compared to May of last year, and 70.5 percent below the previous ten-year average of 1,520 listings for May* (*calculated from 2010 to 2019 to adjust for the impact of the state of emergency on activity in May 2020).
The number of months of inventory was 0.7 in May, which is unchanged from April. Inventory has numbered less than 1 month since October. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.
The average number of days to sell in May was 9 days, compared to 21 days in May 2020 and a previous 5-year average of 20 days.
Safety First / Digital First
Pohl 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?
Home sales in May continue to break records in 2021, and we are seeing steady increases in home prices as well, which may carry into June.
“Last month, the market took a breath and calmed a bit, but there is still very strong demand throughout our region,” says Pohl. “This started prior to the new mortgage stress test that came into effect on June 1. While these changes will impact the affordability for some, I do not expect it to be very impactful due to the sheer number of buyers in our market.”
Competition continues to be fierce, and KWAR President, Nicole Pohl says working with a local REALTOR® has never been more important.
To help encourage new listings and address our supply shortage, Ontario’s REALTORS® are asking the government to introduce a short-term Land Transfer Tax holiday. More information about this and other proposals can be read in the Ontario Real Estate Association’s (OREA) recently released policy report, Rebuilding Ontario: A Framework for Recovery.
You can also head back to last month’s state of the market to learn about what happened in April.