Photo Credit: Breno Assis

K-W REAL ESTATE MARKET UPDATE

Monday Jan 10th, 2022

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The average price of a detached home reaches million-dollar milestone in December.
 
The 7,581 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in 2021 represent an increase of 18.3 per cent compared to last year’s record-setting number of sales that ended the year 2020.
 
On a monthly basis, there were 344 residential homes sold last month, a decrease of 1.7 percent compared to the same month last year.
 
“Home sales in 2021 have absolutely smashed last year’s record by more than 1,000 units,” says KWAR’s president, Megan Bell.

“While this is a good time to sell your home, it remains a tremendously difficult market for buyers. Affordability for all types of housing within our community continues to be a concern which we expect to continue throughout 2022.”
 
Total residential sales in December included 177 detached (down 12.4 per cent from December 2020), and 56 condominium units (down 11.1 per cent). Sales also included 23 semi-detached homes (up 9.5 per cent) and 88 townhouses (up 37.5 per cent).
 
For 2021, total residential sales included 4,272 detached (up 10.8 per cent), and 1,127 condominium units (up 43.4 per cent). Sales also included 578 semi-detached homes (up 31.1 per cent) and 1,602 townhouses (up 20.9 per cent).
 
In December, the average sale price for all residential properties in the Kitchener-Waterloo area was $842,014. This represents a 32.5 per cent increase over December 2020 and a 2.5 per cent increase compared to November 2021.

The average price of a detached home was $1,021,353. This represents a 34.7 per cent increase from December 2020 and an increase of 3.4 per cent compared to November 2021.

The average sale price for an apartment-style condominium was $500,352. This represents an increase of 30.6 per cent from December 2020 and an increase of 1.0 per cent compared to November 2021.

The average sale price for a townhouse was $717,475. This represents a 39.4 per cent increase from December 2020 and an increase of 2.1 per cent compared to November 2021.

The average sale price for a semi was $770,246. This represents an increase of 33.5 per cent compared to December 2020 and an increase 7.3 per cent compared to November 2021.
 
On a year-to-date basis, the average sale price for all residential properties in the Kitchener-Waterloo area increased 25.8 per cent to $770,596 compared to 2020.

The year-to-date average price of a detached home was $920,726. This represents a 28.0 per cent increase compared to 2020.

The year-to-date average sale price for an apartment-style condominium was $448,208. This represents an increase of 17.3 compared to 2020

The year-to-date average sale price for a townhouse was $632,875. This represents an increase of 34.9 per cent compared to 2020.

The year-to-date average sale price for a semi was $673,543. This represents an increase of 29.4 per cent compared to 2020.
 
KWAR cautions that average sale price information can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value.

The MLS® Home Price Index (HPI) provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.
 
The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $851,700 in December. This represents a 32.1 per cent increase over December 2020 and a 3.2 per cent increase compared to November 2021.

The benchmark price for a detached home was $945,600. This represents a 33.5 per cent increase from December 2020 and 3.3 per cent increase compared to November 2021.

The benchmark price for an apartment-style condominium was $412,700. This represents a 21.1 per cent increase from December 2020 and a 3.7 per cent increase compared to November 2021.

The benchmark price for a townhouse is $647,000. This represents a 40.0 per cent increase from December 2020 and a 3.0 per cent increase compared to November 2021.
 
There were 291 new listings added to the MLS® System in KW and area last month, an increase of 1.7 per cent compared to December of last year, and a 14.6 per cent increase compared to the previous ten-year average for December.
 
On a year-to-date basis, there were 9,040 new listings added to the MLS® System in KW and area in 2021, an increase of 11.5 per cent compared to 2020, and a 3.8 per cent increase compared to the previous ten-year annual average.
 
The total number of homes available for sale in active status at the end of December was 104, a decrease of 45.3 per cent compared to December of last year, and 85.7 per cent below the previous ten-year average of 727 listings for December.
 
The number of months of inventory touched an all time low of 0.2 in December. Inventory has settled at under 1 month for fourteen consecutive months. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.
 
“Supply not keeping up with demand was a steady refrain in 2021, and unfortunately I expect that will continue to be the case in the year ahead,” says Bell. “We need all levels of government working together to bring more supply into the housing market.”
 
The average number of days to sell in December stayed at 10 days, compared to 16 days in December 2020 and a previous 5-year average of 28 days. The average days to sell in 2021 was 10 days, compared to 16 days in 2020 and a previous 5-year average of 22 days.

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