WATERLOO REGION — Residential real estate provided a solid return on investment in 2019 in Kitchener and Waterloo, with average prices climbing 9.3 per cent.
Sales volume only increased slightly, with 5,925 transactions representing a 1.6 per cent increase over 2018, according to the Kitchener-Waterloo Association of Realtors. That’s 3 per cent above the previous 10-year average, but 2.3 per cent below the past five-year average, accounting for the overheated markets of 2016 and 2017.
December sales slipped 9 per cent compared to 2018, with 244 sales.
“Overall, it was a steadfast pace of home sales in 2019,” new association president Colleen Koehler said in a release. “When annual home sales in Kitchener-Waterloo hit near 6000 transactions, I consider it to be a strong real estate market.”
The average price for all residential properties sold last year climbed to $527,718. Detached homes were up 7.1 per cent to an average of $614,743. The median price of all properties rose 10.1 per cent to $490,000, while the median price of a detached home increased to $570,000, a jump of 8.6 per cent.
“In 2019, the lack of supply continued to be a hurdle for anyone who was trying to buy their first home, move-up from their current residence, or downsize. This ongoing state of the market caused further escalation of home prices in 2019,” Koehler said.
“With interest rates expected to stay low in the year ahead combined with Waterloo region’s ongoing growth, I expect 2020 will see more price gains alongside a steady increase in sales.”
Inventory remained well below average levels throughout the year, with the number of months of inventory averaging 1.5 for the year. That’s a measure of how long it would take to sell existing inventory at the current pace.
Historical norms for the region are in the three to four-month range. The highest level reached last year came in May, with 2.1 months of supply, dropping to a year-end low of just 0.7 months.
The only category of homes to see an increase in sales last year was detached homes — 3,590 sales represented a 5.9 per cent increase over 2018. All other categories declined. Sales of condominium units were down 7.8 per cent (648 sales), townhomes dropped 3.7 per cent (1,266 sales), and semi-detached homes declined 0.7 per cent (421 sales).
