Home sales were down double digits in the area last month but prices still jumped almost 20 per cent, according to the Kitchener-Waterloo Association of Realtors (KWAR).
The average sale price of a home in Kitchener-Waterloo was up 18.7 per cent year over year to $566,866, KWAR stated.
That number was buoyed in part by a sharp increase in the average price of a detached home in the area. It increased to $660,071, an increase of 14.2 per cent when compared with November 2018.
KWAR President Colleen Koehler believes that newcomers to the region are playing a large factor in rising prices.
“People moving to this area from other places is continuing to be a significant factor for our market. These buyers are selling wherever they are coming from and buying here, removing homes from the inventory but not putting anything in,” Koehler said in a statement.
“This has pushed up prices by decreasing inventory while demand persists.”
Another factor which could be playing a part in rising prices is a lack of inventory.
There were only 432 new listings in November which was 27.9 per cent lower than a year earlier and 17.5 per cent below the 10-year average.
Condos and townhomes also experienced double-digit increases on average to $342,561 (up 13 per cent) and $443,633 (up 22.4 per cent) respectively as townhomes were up 3.5 per cent to $431,635.
KWAR said 424 homes changed hands in the area in November, a total which was 12.4 per cent less than a year earlier.
While detached home sales (265 sold, down 1.5 per cent) were fairly consistent with a year earlier, there were only 46 condos sold (down 28.1 per cent) and 75 townhouses (down 38.5 per cent). Semis bucked the trend as 38 were sold which is up 31 per cent from November 2018.
“Home sales were slower in November,” Koehler said. “However, looking at the last six months of activity combined, unit sales are up by four per cent over last year, and trending above average.”
On average, it took 27 days to sell a house in November, just a day less than a year ago.