Fewer homes sold in K-W in August but prices continue upwards

It's been the story of the summer: The number of homes being sold in Kitchener and Waterloo is lower than last year, but prices continue to rise.

• K-W housing sales down in July, prices remain high
• K-W real estate cools slightly in June compared to 2016 records

In August, there were 483 residential sales completed in Kitchener and Waterloo, which was 19.2 per cent lower than August 2016 when 598 homes were sold. This year's numbers are the third lowest in seven years — the two lower being 475 in 2010 and 459 in 2015.

But the Kitchener-Waterloo Association of Realtors (KWAR) noted last month's numbers are still above the five-year August average of 473 sales.

What is happening in K-W is similar to areas like Toronto, which saw a 34.8 per cent decrease in home sales year-over-year in August.

"I think we're seeing some stability return to the market," KWAR president James Craig said in a release Thursday. "Late summer's record-setting sales were unsustainable and created a market that no one enjoyed."

Tight supply of homes

Also like Toronto, the price of homes in Waterloo region is higher this year than last. 

The sales in August included 286 detached homes for an average price of $519,910, an increase in price of 5.9 per cent compared to August 2016.

There were 105 condominium units sold at an average price of $294,787, an increase of 26.5 per cent year-over-year; 50 semi-detached homes for an average of $338,191 which is up 13.4 per cent; and 32 freehold townhouses at an average price of $351,233, an increase of 17.3 per cent.

Last month's residential sales bring the year-to-date total number of sales of residential units to 4,876, an increase of 3.7 per cent compared to last year.

Craig said that while things have slowed down, it is still largely a seller's market.

"While the tight supply in the market continues to favour sellers, we are pleased to see more inventory coming online," he said.

"The steady rate of sales continues to reinforce that Kitchener-Waterloo and area remains an attractive place to invest in homeownership."

Homes sales in August in Waterloo region since 2010:

• 2017: 483 residential sales, average price $441,992.
• 2016: 598 residential sales, average price $402,000.
• 2015: 459 residential sales, average price $347,057.
• 2014: 567 residential sales, average price $329,892.
• 2013: 512 residential sales, average price $318,807.
• 2012: 495 residential sales, average price $314,623.
• 2011: 507 residential sales, average price $293,149.
• 2010: 475 residential sales, average price $280,493.