1st Quarter Update 2017
When considering growing real estate markets, we’re often told to look at metropolises such as Vancouver and Toronto. Yet, Kitchener-Waterloo seems to be drawing investors and attention on a provincial scale, as speculation appears to be heading to fruition.
Not only does April mark a blank slate for spring, but it is also the debut of 2017’s housing results as we enter the second quarter.
During the first quarter of 2017, there were 1,532 home sales, which is 13.4% above last year’s result during the same period, and 30% above the previous five-year quarterly average. Market research shows that we’re noticing an influx in housing prices due to Toronto’s vibrant economy, and Kitchener-Waterloo, Cambridge, and Guelph have been able to reap the benefits of their ‘big’ neighbour.
However, the GTA is not the only factor responsible as Kitchener-Waterloo has recently developed a strong local economy led by the presence of Google Inc. and dozens of start-ups. The continuing low mortgage rates and curiosity by investors, such as former Bay-Street trader and investor, Michael Wekerle, have tweaked interest within the Tri-city area.
On a monthly basis, home sales were 41% above the previous five-year average for the month of March. Compared to March 2016, the average sale price of residential homes in the Kitchener-Waterloo region has risen by 32.3%. If we dive a bit deeper, the multi-split shows that detached homes increased upwards of 35.6%, selling at an average price just under $590,000. Local condominiums complemented one third of the split as they sold for an average of $265,524, which is 25.9% higher than last year’s market price. As for semi-attached homes and townhomes, these have experienced an increase upwards of 49.1% and 29.9% respectively, fetching prices in the ballpark of the 400,000’s (semis) and as high as $368,554 (townhomes).
As quickly as the 'for sale' signs have been going up, these prices have been eye openers for both sellers and buyers. Currently, the average number of days for which a home has been on the market is at one of the lowest points we’ve witnessed. Compared to last spring, where homes were listed for an average of 35 days, as of 2017, homes have been on the market for a mere 14 days.
It’s evident that Kitchener-Waterloo has evolved from its high-geared student housing development, and is drifting towards an economy revolving around the ‘Northern Silicon Valley’.
In addition to the Light Rail, local businesses, start-ups, tech companies, coupled with both universities, the Tri- Cities area has developed quite the economical ecosystem. In that industry alone, during a five-year span, 1,772 full-time jobs were created, and 484 part-time equivalent jobs were made available. Whether it is from the Toronto overflow, or its the new business growth, Kitchener-Waterloo has been remediating its status, pulling in attention from various aspects of economic growth and infrastructure. According to the Ontario Economic Update 2016, the greatest economic forecast for the year was dubbed in favour of the Kitchener-Cambridge-Waterloo housing market.
Of course prices are relative to certain areas, and that averages shouldn’t paint a picture for every home in the Kitchener-Waterloo, Cambridge, and surrounding areas, but simply as a grasp for the current market. These stats represent an overall perspective as some pockets of the Tri-City hold higher values, and have potential for even higher appreciation rates.
For more market research information and properties within the Kitchener-Waterloo area, feel free to contact me at firstname.lastname@example.org and at (519) 500-9950.