“Real estate was included as an essential service in Ontario
from the outset of the COVID-19 shutdown, and Realtors have stepped up to
ensure those who need to list or buy can do so safely,” said Colleen Koehler,
President of KWAR.
Total residential sales in May included 255 detached homes (down
41 per cent from May 2019), and 42 condominium apartments (down 42.5 per cent).
Sales also included 79 townhouses (down 42.8 per cent) and 43 semi-detached
homes (down 29.5 per cent).
The average sale price of all residential properties sold in May
increased 6.5 per cent to $568,275 compared to the same month last year, while
detached homes sold for an average price of $657,274 an increase of 5.4 per
cent. During this same period, the average sale price for an apartment-style
condominium was $330,336 for an increase of 0.6 per cent. Townhomes and semis
sold for an average of $454,197 (up 13 per cent) and $482,479 (up 11.4 per
cent) respectively.
The median price of all residential properties sold in May
increased 10.1 per cent to $545,000 and the median price of a detached home
during the same period increased 9.6 per cent to $630,000.
“In May we saw the strong appetite for homes in the
Kitchener-Waterloo area is still very much alive,” said Koehler. “But as the
virus continued to circulate in the community many would-be sellers were
reluctant to put their homes on the market. For the homebuyers who cannot wait
out the pandemic, they are not finding any fire sales as homes are not only
maintaining their value, but also increasing.”
There were 577 new listings added to the MLS® System in KW and
area last month, a decrease of 48.7 per cent compared to May of 2019, far fewer
than the previous 10-year average of 1,035 listings in May.
The total number of homes available for sale in active status at
the end of May was 567, a decrease of 43.9 per cent compared to May of last
year.
The number of Months Supply (also known as absorption rate)
continues to be very low at just 1.3 months for the month of May, 38.1 per cent
below the same period last year. The previous ten-year average supply of homes
for May was 3.25 months, and in the past 5 years, the average supply for May
was 2.32 months.
Koehler acknowledges the pandemic has pushed even the most
traditional real estate practitioners to adopt to digital and virtual
technology to interact with clients. She advises consumers should talk to their
Realtor about the digital tools they use to minimize the need for physical
contact and to ensure that all of Health Canada’s guidelines are in place to
reduce the risk of transmission of the virus when in-person showings are
required.”
The average days to sell in May was 20 days, compared to 19 days
in May 2019.
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