Kitchener-Waterloo Real Estate Market Update October 2019
|K-W Real Estate Market Update|
Second strongest September ever for K-W home sales.
There were 526 residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in September, an increase of 17.7 per cent compared to the same month last year.
Home sales in September included 330 detached (up 20.4 per cent), and 38 condominium apartments (down 24 per cent). Sales also included 125 townhouses (up 34.4 per cent) and 33 semi-detached homes (up 10 per cent).
“This was the second strongest September for home sales we’ve had on record, and only the second time transactions exceeded 500 units in the month of September,” says Brian Santos, KWAR President.
Alongside the strong sales in September, average and median prices of all residential properties hit all-time highs. The average sale price of all residential properties sold in September increased by 10.2 per cent to $541,850 compared to September 2018.
Detached homes sold for an average price of $612,643 (an increase of 7.1 per cent compared to September of last year. During this same period, the average sale price for an apartment–style condominium was $335,110 for an increase of 3 per cent. Townhomes and semis sold for an average of $439,522 (up 16.3 per cent) and $459,588 (up 18.9 per cent) respectively.
The median price of all residential properties sold last month increased 12.6 per cent to $510,000 and the median price of a detached home during the same period increased by 10.9 per cent to $576,500.
The average days it took to sell a home in September was 22 days, which is three days fewer than it took in September 2018.
REALTORS® listed 811 residential properties in K-W and area last month, a decrease of 2.1 per cent compared to September of 2018, but an increase of 5.2 per cent in comparison to the previous ten-year average for the month of September.
The total number of homes available for sale in active status at the end of September totalled 775, a decrease of 21.7 per cent compared to September of last year, and well below the previous ten-year average of 1,458 listings for September. Months Supply of Homes for sale stood at 1.6 months in September, which is 23.8 percent lower than the same period last year. The previous ten-year average months supply of homes for September was 3.16.
“Tight supply is the new normal,” says Santos. “We’ve been tracking under two months of supply for over three years now, and this has put steady upward pressure on prices.”
Santos says market conditions have made it especially challenging for first time home buyers, noting that all the major political parties have made policy commitments related to home buying going into the upcoming federal election.
Santos advises buyers work with a local REALTOR® who has a complete understanding of our region to give them an advantage in the highly competitive KW housing market.
|> The Frederick Art Walk|
| Get a head start on your holiday shopping at the Frederick Art Walk!
What started out 19 years ago as a simple pottery sale has now turned into a thriving craft tour featuring over 70 artists that work out of 27 different heritage homes.
The Frederick Art Walk is a 4 km walking tour through one of Kitchener’s oldest neighbourhoods located between Victoria Street and Krug Street to Lancaster Street and East Avenue.
There will be a variety of original arts and crafts such as jewellery, stained glass, woodcrafts, candles, soaps, photography, paintings, fused glass, sketches, skincare items and stationery along with a variety of homebaked goods!
The Frederick Art Walk will be held on Saturday, November 9th from 10 a.m. to 5 p.m. Don’t miss your chance to enjoy a relaxing fall walking tour through one of Kitchener’s oldest neighbourhoods while shopping for one-of-a-kind crafts from local artisans. Hope to see you out and about!
|Co-ownership -- Will Your Friendship Survive?|
| Planning is key if you’re thinking of purchasing a property with a friend!
If you’re tired of renting but can’t quite scrape together a down payment for a home of your own, you may need to get creative. One option is to purchase a property with a friend or relative.
Co-ownership makes it so much easier to buy a home as you’re able to share the down payment and monthly expenses. It’s a partnership you don’t want to enter into lightly though as there are pros and cons.
On the plus side, it’s much more affordable, so you’ll be able to start building up equity instead of constantly throwing your money away on rent.
The drawbacks, however, include a lack of privacy and the potential loss of a valuable friendship. You may like and trust each other now, but things could change once you start living together.
Determine first whether your personality styles are a match. If you’re a neat freak and your friend doesn’t know one end of a vacuum from the other, then problems may arise.
Also, think about how you like to spend your leisure time. If you prefer spending quiet nights at home, but they’re more of a party person who loves to host, it may not be a great match.
If you’ve determined that you're a good fit, the first thing you’ll want to do is visit a mortgage broker to get pre-approved and lock in the lowest rate to protect yourself in case they rise while you’re out house hunting.
Next, draw up a list of essential items such as location and parking. Seemingly small issues, like who’s getting the master bedroom, may create future tension so sort out these types of details ahead of time.
Finally, draw up a contract that addresses potential problems and spells out maintenance issues. This is a business deal, so discuss worst-case scenarios such as death or how to proceed if one person wants to sell, but the other doesn’t.
Building up your financial security through co-ownership can work well for both parties if you have an open line of communication before, during and after you buy a home. A solid plan will help eliminate future problems so you can enjoy the benefits of co-ownership while remaining friends for life!
|Not Just a Bunch of Hot Air|
| Check your furnace now to save on costly repair bills down the road!
When we're poking around in the basement, we don’t give the furnace a second thought; that is until the weather turns cold and it’s time to fire it up!
The last thing you want is for your heat to fail on the coldest night of the year when service calls cost a fortune. Here are a few tips that’ll help keep your furnace in tip-top shape:
Regular furnace maintenance will increase efficiency, reduce energy use and prevent general wear and tear. Think of it as an investment rather than an expense as it'll help you avoid huge, unexpected repairs down the road.
|Knock Your Socks Off!|
| These handy home hacks give new meaning to the phrase “put a sock in it!”
We all have those odd, mismatched socks kicking around at home. Instead of tossing them in the trash, here are a few clever ways to put them back into service:
Don’t let single socks get you off on the wrong foot. Hunt down all those mismatched socks that have been kicking around for years and put them to good use!
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