It was expected that January would be a busier month for real estate transactions than in previous years, and that’s exactly what happened. People continue to hunt for available listings and no longer see the need to wait until Spring.
The first month of the year did indeed bring a rush of buyers into the real estate market. They were looking to purchase a home after the holiday season ended and with the lowest ever recorded levels of inventory.
“While the number of new listings significantly surpassed that of the previous few years, it was nowhere near enough to meet the demand,” says Greig Turvey, Sales Representative, GoWylde Team/ReMax.
Homes sold for 28% over the list price, on average, in January.
This pushed the average sale price for Kitchener/Waterloo up to a record-breaking $930,695. That’s up 11% from December 2021 and 40% compared to January of last year.
The average sale price was $1,143,799 for detached homes, $838,523 for attached homes and $534,890 for condos and apartments. An amazing 92% of listings sold over asking.
“When looking at Waterloo specifically, prices increased 49% year over year, which is the largest increase I’ve ever seen,” says Turvey.
This 11% increase meets or surpasses what most analysts predicted for the entire year of 2022—and it doesn’t look like price increases are done just yet. This runaway train is unlikely to cool off until the late Spring, says the agent; that’s the earliest point in the year that we might finally see inventory levels that are capable of satiating the huge demand from buyers.
One figure, at least, is trending in the right direction. That’s the months of inventory stat, which did rise to 0.54, up from December. While it’s still incredibly low, this particular metric is expected to increase throughout the coming Spring and Summer.
Clearly 2022 is off to a roaring start. Stay tuned for more details as we inch closer toward Spring.
Stay up to date with the latest market trends in Kitchener and Waterloo with real estate agents Brad Wylde and Greig Turvey. Visit the GoWylde Team or call 519-826-7109 for more information.