Real estate values are continuing a momentous surge in the Waterloo Region. Our local Real Estate Association just marked another month of record sales. April 2017 saw the region produce more residential real estate transactions than any other April on record despite historically low inventory.
Recently, the Ontario government announced a slew of regulatory measures in an attempt to curb perceived market volatility in home sales for the Greater Toronto Area. The measures include a 15% tax on foreign buyers, further rent controls, and a review of practices surrounding real estate transactions, read more on the new housing regulations here. Since the announcement, market activity in Waterloo Region
has not perceptibly changed. In the 14 days before the government’s announcement, there were 480 residential real estate transactions, an average sale price of $514,972, while the average listing spent 8 days on the market. The 14 days following the announcement there were 469 transactions, an average sale price of $510,236, while the average listing spent 11 days on the market. These stats suggest buyer demand remains very strong and the differences between the two periods is marginal based on the sample size. Benjamins Realty will continue to monitor market conditions as the timeline for the introduction of the regulations draws nearer.
Meanwhile, the month of April in the Waterloo Region market generated the following growth. Residential sales volume was up 14.7% overall with the largest increase coming from freehold townhouses up a staggering 60.6% compared to last year. The rising costs of detached homes have made freehold towns very popular in this new market. The average sale price for all residential sales increased by 39.7% from last year. Detached home sales in April averaged in at $594,453 (up 40% from last year) creeping ever close to $600,000 while it was only in January 2017 we were seeing this number move past $500,000 for the first time.
What does this mean for clients of Benjamins Realty? There has never been a better time to sell your home. However, Buyers should be prepared for heavy competition and will need a solid game plan and realistic expectations to acquire a property. There are still good deals to be had in this market for the careful consumer.
Historical Summary for Residential Market Statistics in Waterloo Region