Like most of the country, the Kitchener real estate market saw a sustained surge through the end of the year because of the changing mortgage regulations that were set to come into effect on January 1st. 2016 set all-time records in the Kitchener-Waterloo market, and many expected something of a return to earth in 2017. However, the fast-approaching new mortgage regulations actually pushed this December’s sales figures slightly higher than those of the previous year.
This year, there were 301 homes sold in the Kitchener-Waterloo region during the month of December. This was 13% above the 5-year average. Even compared to last year’s incredible performance, this December climbed 1% higher year-over-year. When all of 2017 is compared to 2016, the 6,549 properties sold in the region this year were a scant 1% fewer than in 2016.
Increased Demand Creating Incredibly Fast-Moving Market
Shopping for a home in Kitchener is a sprint, not a marathon, at present. When averaged over the last 10 years, it has taken the typical home 43 days to sell. The average home sold in 2017,however, has taken only 19 days to sell. This type of fast moving marketplace requires buyers to make decisions and move quickly if they don’t want to see their dream home going to someone else.
Part of the reason that homes are moving so quickly in the region is linked to supply issues. Homes are being listed for sale at very near to the 10-year average. However, with sales figures tracking so much higher than normal, this is putting a strain on supply. At the end of December, there were fewer than 600 properties available for sale in Kitchener.
Demand Driving Prices Up Quickly
Prices in Kitchener seem to be climbing almost as fast as the houses are selling. With 2017 over, it can be useful to look at average sale prices for the year to get a picture of the larger trends at play. The average price of all homes sold during the year was $467,513. This is a 20.7% year-over-year increase, driven largely by detached homes. The average sale price of $549,046 for a detached home was up 21.5% year-over-year. Detached homes also made up the lion’s share of overall sales. Of all properties sold in the city in 2017, 4,005 of them were detached homes.
Industry observers have seen the buying frenzy in Kitchener cool since the new mortgage regulations came into effect. However, buyers shouldn’t expect any sort of price drop any time soon. Kitchener has been under-valued for some time compared to many of its Ontario neighbours, which has been somewhat corrected thanks to the growth seen in 2017.
Lethbridge Housing Market
Vancouver Housing Market
Montreal Housing Market
Regina Housing Market
Winnipeg Housing Market
Edmonton Housing Market
Hamilton Housing Market
Halifax Housing Market
Ottawa Housing Market
Toronto Housing Market
Saskatoon Housing Market
Calgary Housing Market
Victoria Housing Market
Windsor Housing Market
Mississauga Housing Market
Kingston Housing Market