July was not a very exciting month when it comes to real estate in Kitchener, according to Greig Turvey, Sales Representative, GoWylde Team/ReMax.
Prices overall remained flat. Attached homes did see a month-over-month increase of 5%, while condos saw a decrease of 4%. Properties continued to sell over list price by an average of 12%, which means there are no major changes to report when it comes to prices.
“The most interesting stats to me are the number of new listings and the number of active listings,” says Turvey. “New listings were at a 5-year-low for July. We can speculate a bit on why that might be… People may be taking a break from real estate in order to travel and get out now that many of the Covid restrictions have been lifted. Or it’s possible that many people who were planning on selling this year have done so already. It’s true that year-to-date we’re up about 32% compared to new listings last year and up 9% from 2019, which was a ‘normal’ year.”
Another issue affecting inventory is that many people are waiting to buy first before putting their house on the market. Due to the low inventory available, most people who are moving are waiting to buy before they list, to make sure that they’ll be able to find what they want. Because the market is still so hot, people aren’t worried that they won’t be able to sell their home after they’ve bought.
This low inventory, then, is likely causing a backlog of eager sellers. In a more balanced market, they would have the courage to list their home either before or at the same time as they look to purchase. That would in turn help to keep the market more balanced.
Thanks to this new lack of listings hitting the market, sales have dropped 18% year-over-year. Inventory is at levels we haven’t seen since February of this year—which is absolutely unheard of for July. We can usually expect to see an average inventory of 700-800 homes on the market in July, and that figure currently sits at just 278. Months of inventory dropped 12% month-over-month to just 0.5.
Says Turvey, “I expect this trend to continue through August before we see the September rush. It will be interesting to see if September can bring some balance back into the market, or if supply will continue to drop to unprecedented levels as we move into the holiday season.”
For more information, or to contact real estate agents Brad Wylde and Greig Turvey, visit the GoWylde Team or call 519-826-7109.