Record High Home Prices Continue in May

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The number of home sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in May were on par with the same month last year. There were 694 residential sales last month, an increase of 11 per cent compared to April, and an increase of 7.2 per cent compared to the previous ten-year average for May.  

Total residential sales in May included 429 detached (up 2.6 per cent), and 68 condominium apartments (down 23.6 per cent). Sales also included 137 townhouses (down 4.2 per cent) and 60 semi-detached homes (up 36.4 per cent). 

“Home sales were strong last month,” says Brian Santos, KWAR President. “May is often the most active month in a given year, but the way sales picked up in momentum after the Victoria Day holiday makes me think we could see sales activity in June surpass May.

The average sale price of all residential properties sold in May increased by 10.6 per cent to $534,348 compared to May 2018. Detached homes sold for an average price of $623,289 an increase of 9.1 per cent compared to May of last year. During this same period, the average sale price for an apartment style condominium was $332,309 for an increase of 11.3 per cent. Townhomes and semis sold for an average of $402,426 (up 9.8 per cent) and $432,207 (up 9.3 per cent) respectively.

The median price of all residential properties sold last month increased 11.2 per cent to $495,000, and the median price of a detached home during the same period increased by 10.4 per cent to $575,000

REALTORS® listed 1,123 residential properties in K-W and area last month, an increase of 5 per cent compared to May of 2018, and an increase of 12 per cent in comparison to the previous ten-year average for the month of May. The total number of homes available for sale in active status at the end of May totalled 1,012, a decrease of 0.8 per cent compared to May of last year, and well below the previous ten-year average of 1,607 listings for May. Months Supply of Homes for sale stood at 2.1 months in May, which is on par with the same period last year.  

“It was good to see more listings coming onto the market in May, but home buying demand continues to outpace the number of homes available,” says Santos. “I hope to see more listing activity in June and into the summer months. With mortgage rates as low as they are—demand from buyers is bound to stay strong, making it a good time to sell your home.”  

The average days it took to sell a home in May was 12 days, compared to 13 days in May 2018.

While the majority of residential MLS® System activity is properties for sale, REALTORS® are increasingly asked to represent landlords and tenants. Last month 65 residential leases occurred through KWAR’s MLS® System, an increase of 8.3 per cent compared to May of last year and a 164.2 increase compared to the previous ten-year average.