May was another banner month for real estate in Kitchener-Waterloo! While still setting records for home sales for the month of May, it was relatively stable when compared to April 2021. The 854 residential homes sold in the month represent a 100.9% increase over May 2020, but only a 0.9% increase over April 2021. So, despite being under a stay-at-home order, May 2021 sales managed to remain strong through the lockdown. For some longer-term context, the previous ten-year average for May is 656 homes sold for the month.

Compared to May 2020, home prices are still very high, with the average sale price coming in at $740,103, which is 30.4% higher than the same month last year. However, it’s 2.4% lower than the April 2021 average, which may indicate some levelling off of the market. While the dramatic month-over-month increases seem to be calming, the high number of buyers in the area have managed to keep demand and prices high.

It’s possible that some of the activity in May was to beat the new stress test rules that came into effect June 1. While this new threshold will impact affordability for some buyers, it’s unlikely to have a big impact on the overall demand in the region. 

What do we have to look forward to in June? The new stress test rules, the gradual re-opening of the province, and a historically busy time for buying and selling will all play into what happens as the month progresses. If you’re looking for guidance on how to plan your next move, call us anytime!

Read the full article here.