There were 5,823 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in 2018, a decline of 11.1 per cent compared to 2017.
With 263 transactions taking place last month, December’s home sales were down 13.2 per cent from this time last year and slightly behind the previous 10-year average of 268 sales for the month of December.
“The combination of rising interest rates and the mortgage stress test definitely took some steam out of the market relative to what we saw in the previous two years,” says Brian Santos, President of KWAR. “These types of impediments are most impactful on first-time as well as other buyers entering the housing market.”
Total residential sales in 2018 included 3,355 detached (down 16.2 per cent), and 1,553 condominium units (up 6.4 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 417 semi-detached homes (down 23.6 per cent) and 431 freehold townhouses (down 7.7 per cent).
The average sale price of all residential properties sold in 2018 increased 3.4 per cent to $483,537 compared to 2017. Detached homes sold for an average price of $575,412, an increase of 4.8 per cent compared to 2017. During this same period, the average sale price for an apartment style condominium was $304,676 for an increase of 12 per cent. Townhomes and semis sold for an average of $373,307 (up 5.5 per cent) and $396,391 (up 4.7 per cent) respectively.
The median price of all residential properties sold last year increased 3.6 per cent to $445,304, and the median price of a detached home during the same period increased 6.1 per cent to $525,000.
The average time it took for a home to sell in 2018 was reflective of demand continuing to outpace supply. The number of months of inventory remained at under 2 months of supply throughout the year (3-4 months is historically normal for Waterloo region) and the average days to sell in 2018 was 24 days, compared to 19 days in 2017 and a previous 10-year average of 40 days.
While we may be seeing fewer buyers coming down the 401, Santos believes they are still a component of the Waterloo region real estate market, just not as speculative as what we saw in the previous two years. Santos says, “2018 continued to be a seller’s market in the region with stable sales activity and homeowners realizing solid gains in their property values.”
Santos points out that, “Even though prices increased more moderately overall compared to the last two years, they continue to respond to strong demand and the desirability of our area. For those would-be buyers who have been sitting on the fence these past two years, home prices are only getting further out of reach, as supply remains low and demand strong.”
Relocating to a new city can be an exciting yet overwhelming time.
The prospect of a work relocation means you’ll need to be well organized as there’s usually not much time to get acquainted with your new area.
First off, determine what the cost of living will be in the new location. There’s no point in relocating for a higher salary if the extra income will be eaten up by increased living expenses.
Make sure to also consider factors such as workload, expense accounts, travel expectations, job opportunities for your spouse and schools for the kids. Here are a few other points to keep in mind:
- Time is Money – Create a budget and a detailed timeline to help you stay on track.
- Recon Mission – Plan a trip to familiarize yourself with the local area or check out a few community websites if it’s too far to preview in person.
- Check Yourself – A detailed checklist will help ensure everything goes smoothly which will reduce the stress that’s associated with a major move.
- Smooth Move – Select a real estate agent to sell your home and ask them to refer you to an agent in your new city who can help familiarize you with the local market.
- Take the Credit – Employers often provide relocation packages to help offset expenses such as temporary housing and moving costs. There may also be certain tax credits available.
Deciding whether or not to relocate can be very stressful. Not only are you trying to negotiate a career move but you’ll also be starting a new life in an unfamiliar place. However, if you approach this process by paying close attention to all the details, you’ll enjoy a much more positive relocation experience. Please don’t hesitate to get in touch if you have questions or need any real estate advice!