MLS Listings Review October 2018
In review of MLS listings numbers for October 2018 we will share what prices and inventory are doing the Waterloo, Kitchener, Cambridge and Guelph real estate markets. To compare similar numbers to earlier this year and the same time last year check the visuals below and our previous blog post.
Real Estate Inventory Numbers
Months of inventory is the number of active listings on the market in the previous month divided by the number of sales that month. This metric is key to determining the amount of available listings there are in our local real estate markets. October 2018 had just under 2.5 months of inventory in the major market centers Kitchener, Waterloo, Cambridge and Guelph. This is still about half of the amount of available listings we would need to even see a balanced market. Low inventory signals that buyers do not have a lot of options and the seller’s market will continue. Low inventory levels also supports price growth.
MLS Listings Price Numbers
Are prices going down? What prices does this type of place sell for? Are listings still selling in multiple offers? Comments and questions on prices are the most common things we hear from our network.
Prices are not going down and yes some listings are still selling in multiples. We are still in a competitive market for buyers, especially anything in the lower 400’s and under. As you can see in the graphic here the average price of residential listings in Kitchener, Waterloo, Cambridge and Guelph was $475,268. The average sale price has fluctuated around 1-2.5% of October’s average sale price for the better part of the last 5 months.
The average of the monthly prices for residential listings was $461,967 in 2017 and $479,908 so far in 2018. This is a 3.58% increase compared to 2017 prices.
What You Need to Know as a Buyer – Realtor Notes
For buyers we encourage looking at opportunities to purchase within the next three months for two main reasons. First, interest rates are likely to increase again in 2019. Get in before it becomes more expensive for you. Check out how interest rate increases can affect your mortgage HERE. Second, Although inventory is historically low we have noticed that competition has softened slightly. This is fairly common for this time of the year but recent increases to interest rates and media/market sentiment shifting towards price uncertainty is revealing more opportunities for savvy buyers than usual. Contact me directly or check out our Facebook page for buyer resources, search tools and updated listings.