The average cost of homes in Waterloo Region continued their climb to new heights last month, according to the Kitchener Waterloo Association of Realtors (KWAR).
On average, KWAR says the average cost of purchasing a home rose to $639,814, a full 22.8 per cent higher than last year when the average price was $521,101.
It is also a significant increase from last month when the price reached $601,285, crossing the $600,000 threshold for the first time.
“Elevated homebuyer activity, combined with constrained supply, put huge pressure on prices last month,” KWAR president Colleen Koehler said.
“Homebuyers remain very confident about owning a home in Waterloo Region, and with mortgage rates still at near-record-low levels, I expect we will continue to see strong home buyer demand going into the fall.“
It cost buyers $745,149 (up 21.4 per cent from July 2019) to get a detached home last month, while buyers of condos paid an average $392,770 (up 15.2 per cent). Also experiencing increases were townhomes, which were an average $465,756 (up 12.8 per cent) and semis, which were $522,872 (up 20.4 per cent).
While buyers were forced to pay exorbitant prices in July, it did not slow sales at all.
A total of 734 homes changed hands last month, which is 25.7 per cent more than a year earlier and well above the 10-year average of 531.
“The rate of home sales in July resembled the kind of month we would normally see in May, and I chalk up much of that to the pent up demand that built as we moved into Stage 3 of reopening in mid-July,” Koehler said.
A lack of inventory could lead to even higher prices in August.
KWAR says there were only 592 homes in active status at the end of July, which is 32.6 per cent lower than July 2019.
Further, supply sits at just 1.3 months, which on average over the previous five years was 2.1 months.