Wow! Looks like the “spring market” started early in Waterloo Region this year. It is no secret that we are currently in a seller’s market – there are a lot more buyers than sellers which creates multiple offer situations on the majority of the homes that are selling in Waterloo Region. What are your thoughts on the current market in the Region?
The average price for a single detached home was almost $550,000 in the month of February. This is a substantial increase from over a year ago.
Why is this happening and what are people doing?
· We have seen an increase in buyers coming from the Toronto market. Prices have skyrocketed in Toronto over the past few years making it more difficult to enter and sometimes even move within the market. The Region of Waterloo offers buyers from the Toronto area a nice home, with some property and it is still only a short drive to Toronto.
· We are also seeing local industries continuing to grow. For example, the number and size of technology companies has rapidly increased in Kitchener Waterloo leading to a significant number of individuals and families interested in entering the local housing market.
· Under the current market conditions, many first-time buyers are finding that their money won’t go as far as it did even just a few months ago. Some buyers are reducing their expectations (For example, size, condition, location) while others are spending more than they had initially planned so that they can get what they want.
The key is to be realistic within the market conditions. Prices are increasing and it is currently a strong sellers market. The buyer needs to be ready to act quickly and needs to understand what creates a strong offer. Price is only one part of the equation, working with a local, experienced Realtor can benefits buyers greatly.
Press Release below from the Kitchener Waterloo Association of Realtors (KWAR)
KITCHENER-WATERLOO, ON (March 3, 2017) ––There were 474 residential sales in February through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), an increase of 4.2 percent compared to February 2016.
“Sales in February were well above what we would see in a typical February,” says James Craig, President of the KWAR. The 10-year average for residential sales in Kitchener-Waterloo and area for February is 405 units. “Last month’s sales would have been much higher still were it not for the fact that we continue to have a real shortage of listings.”
Residential sales in February included 299 detached homes (up 5.7 percent compared to February 2016), 107 condominium units (up 3.9 percent) which include any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 32 semi-detached homes (down 3 percent) and 31 freehold townhouses (up 3.3 percent).
A lack of listings to satisfy the strong consumer demand is fuelling multiple offers often resulting in sale prices above the actual asking price, which pushed the total residential average sale price in February up 27.5% compared to the same month last year to $463,355.
Detached homes sold for an average price of $549,691 an increase of 30.7 percent, while the average sale price for an apartment style condominium was $246,736, an increase of 8.8 percent. Townhomes and semis sold for an average of $388,721 (up 20.6 percent) and $369,624 (up 31 percent) respectively.