Local realtors saw strong home sales in November — the second best on record for the Kitchener-Waterloo association.
The 483 sales last month through the Kitchener-Waterloo Association of Realtors’ Multiple Listing System were up 14.2 per cent over November, 2017; that’s 19 per cent more than the prior 10-year November average of 406 sales.
“For the second straight month we are reporting stronger than average sales,” association president Brian Santos said in a release. Year-to-year sales were up nearly eight per cent in October.
“The prospect of further interest rate increases that were indicated last month could be responsible for the current surge in home sales.”
On Wednesday, the Bank of Canada left the key interest rate unchanged at 1.75 per cent.
The average price of all residential properties rose in November to $477,526, up 7.6 per cent from a year ago. The median price was up 6.3 per cent to $443,800.
Detached homes saw the greatest year-over-year average price increase, up nearly 13 per cent to $580,551. The median price for a detached home rose 9.5 per cent to $520,000.
Average sale prices for apartment-style condos and semis rose about 10 per cent each, to $305,334 and $416,878, respectively. Only townhomes saw a drop in the average price, down two per cent compared to a year ago at $361,177.
“Waterloo Region continues to be a very desirable place for purchasing a home,” Santos said.
But he said affordability remains a concern as prices rise, especially in the detached market.
“While we believe this is more a reflection of our region being ‘discovered’ by buyers from the (Greater Toronto Area), it is resulting in more entry-level clients pursuing condominiums and townhomes,” he said. “Combined with an ongoing tight supply of listings, buyers are facing continued upward pressure on sale prices in the region.”
The association had 888 active listings at the end of November, 449 fewer than the previous 10-year November average of 1,337 listings.
Area realtors listed 597 residential properties last month, down about one per cent compared to November, 2017. The number of new listings is considerably higher than the 10-year average of 505 listings posted in the month of November.