June market update: K/W real estate strong but cooling

What did the month of June 2021 look like for real estate in Kitchener/Waterloo? Compared to the previous month, residential resale home sales remained fairly strong overall. 

The number of sales, as well as the number of active listings, dropped by 15%. New listings are also down, 23% month over month. 

Keep in mind that these are typical trends, the kind we usually see this time of year as we transition from Spring to Summer.

Of the properties that sold, 82% sold over asking price. An important caveat, however, is that this doesn’t take into account the number of listings that are either still for sale or that were cancelled or expired. When you include those factors, about 70% of listings are selling quickly and for more than the asking price. The remaining 30% end up taking a bit longer to sell, and some will not sell at all without a drop in price.

Compared to May, months of inventory remained steady at 0.58.

“The market has been continuing to slowly cool off from the craziness of the Spring,” says Greig Turvey, Sales Representative, GoWylde Team/ReMax.

Prices have remained fairly flat and the number of days a home spends on the market has been increasing slowly. At its low in March, it was an average of 10 days, whereas it is 13 currently.

“Overall, the market remains very hot and it’s a very strong sellers’ market still,” says Turvey. Sellers may be able to capitalize on lower inventory as we move into the summer months, as it will drive competition. 

Says the Realtor®, “It will still be challenging for most buyers in this market. However, there are certainly many opportunities to purchase a new home without having to compete with any other offers, which was pretty much unheard of just a few short months ago.” 

If there continues to be a decline in buyer demand, prices could start to drop soon, he says. But decreasing supply is pretty much a guarantee for the rest of the Summer until September. 

Says Turvey, “It will be interesting to see how things go. I think it’s likely that demand will still outpace supply.”

For more information, or to contact real estate agents Brad Wylde and Greig Turvey, visit the GoWylde Team or call 519-826-7109.