May 2019 Real Estate Review
Single family homes in Waterloo Region continue to experience consistent price growth while selling quickly. As we review other key market data for the condo and Townhouse/Semi-detached segments we notice some short term fluctuations and long term trends. For condos there was slight decrease in average sale price and a little more inventory coming to market. In the townhouse and semi-detached segment of the Waterloo Region real estate market listings are selling quickly, prices rose as well as inventory.
*note there was a previous issue with discrepancies in median and average data figures for April 2019. The issue has be resolved. Contact us directly via contact page or comment for specific questions.
Key Market Stats
- Single family average sale price up to $563,056
- Condo average sale slid to $331,581
- Single family listings are selling in 2 weeks or less on average (for a 5th straight month)
- Overall inventory increased in May 2019 to 2.1 months of supply
Single Family Homes
Kitchener, Waterloo and Cambridge continue to account for the largest volume of single family homes in Waterloo Region sold. In these cities, as well as the rest of Waterloo Region, the averages sale price of single family homes continue to rise.
Average Sale Price: $563,056 UP 7,058
The average sale price in May 2019 was $563,056, up from $555,998 last month. Last month’s average sale price for single family homes in Waterloo Region means there has been just over a 7% increase in average sale price since May 2018.
*Note average sale price was about $525,000 in May 2018
Days on market: 11 Days DOWN 1 Day
Single family homes in Waterloo region continue to sell QUICKLY. Single family homes in Waterloo Region sold in 11 days on average, one day quicker than April. Listings in this segment have sold in 14 days or less every month so far in 2019.
Months Supply – Inventory: 2.1 Months UP 0.2 Months
In Waterloo Region single family homes have experienced an extended period of low inventory. Our local real estate markets have not had more than 2.1 months of inventory for single family homes for over 3 years. On a positive note, in December 2018 Waterloo Region only had just one month of inventory. Since then, we have experienced five straight months of rising inventory for single family homes in Waterloo Region.
The condo market remains red hot. Redevelopment in city centres promises additional inventory but it can’t come quick enough. Investors and buyers searching for value in lower price points continue to scoop up great condo deals!
Average Sale Price: $331,581 DOWN $2,213
The average sale price of condos in Waterloo Region slid from $333,812 in Aril to $331,581 in May. This was a minor decrease of $2,213 from the average sale price last month. We can expect the condo market to experience more short term volatility compared to the single family markets in Waterloo region primarily because of the nature of Condo markets (see realtor notes for more on this).
Average Days on Market: 27 Days SAME AS APRIL
The average days on market for condos in Waterloo Region was 27 days. This is the same as April 2019. It is important to note that the overall trend o condos selling in fewer days has continued for year.
Months of Inventory: 3.1 Months UP 0.3 Months
Inventory of condos in Waterloo Region increased for the 5th straight month. May marks the first month since September 2018 that Waterloo Region condo market has had more than three months of inventory. Short term fluctuations in condo inventory numbers can be attributed to the release of new condo developments.
Townhouses & Semi-Detached
Check out the key stats on this market segment below! Want more information on this segment? Drop a comment or contact us here.
- Average sale price was $409,728 UP from $407,512 in April
- The average days on market was 10 days in May DOWN 1 day from April
- There was 1.6 months of inventory in May 2019 UP 0.4 months from last month
Although the average sale price for condos dropped in May the other segments in our local real estate markets continue to experience price appreciation. Even over the next few months we can expect the average sale price of condos to continue to increase. Price growth in our real estate markets is currently fueled by low inventory, strong buyer demand, and low financing rates.
List to sale price ratio (or “Percentage of original price”) is another data point we review to measure how competitive our local real estate market landscape is. For May 2019 that was 101.2% compared to 101% of May last year. That means that on average listings are selling for about 1% above asking price. That compared to the previous 10 year averages of closer to 96-98%.
As noted in the condo market section of this monthly real estate market update this segment will experience short term volatility in key metrics like inventory, price and days on market. One reason for that is that large amounts of inventory being introduced and sold in small time frames. As new condo buildings are ready for sale large numbers of condo units are made available and sold in short periods of time. Compare this to a how a builder releases just a small handful of single family homes at a time. A larger volume of condo units released and sold in a short time frame will create these types of short term volatility in the condo market.
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