New Benchmarks For Value and Volume In September 2019
The Kitchener-Waterloo residential real estate market has shown impressive growth through September 2019. With listing supply at chronically low levels (less than 2 months supply) and interest rate cuts from most major banks over the summer, we are seeing increased activity from Buyers looking to step up into mid-range housing. Townhouses and semi-detached properties saw the largest year-over, average value increase up 16.3% ($439,522) and 18.9% ($459,588) respectively. Detached properties increased 7.1% ($612,643) while condos lagged behind at a still-respectable 3% ($335,110). This is a reversal from last year’s fall market trends when economists were flouting the possibility of rate hikes and lending rates were tighter. At that time, condominiums were moving upwards in value at a much faster pace compared to freehold property.
The Bank of Canada just made another rate-hold announcement on October 30th, the next announcement will be December 4th. While global trade uncertainty is continuing to weigh down markets, the BOC’s decision to hold rates shows confidence in the consumer economy of Canada. Strong unemployment numbers and a firmer stance on rates is buoying the Canadian dollar against the American greenback. All the same, many analysts predict a rate cut in the near future, perhaps as early as December to keep Canadian currency competitive for exports. This is leading to continued projections for real estate growth in 2020. In an already active local market, we could be poised for another strong run in value gains.
For Buyers and Sellers
What does this mean for local Buyers and Sellers? As a Buyer, expect to face stiff competition for mid-tier housing. The median price for all residential real estate in Kitchener Waterloo for September 2019 was $510,000. Detached homes ranging in the 450k-600k are selling on average in just 10 days in Kitchener. It’s a pace that matches peak market activity in years past and is almost half the amount of time the average residential transaction takes in Kitchener-Waterloo (22 days September 2019).
Sellers can continue to enjoy record level Buyer activity. For those considering downsizing, there are many opportunities. New developments in our region continue to add quality stock to the housing supply (see our most recent development review on Avenue M). An existing homeowner can partner with Benjamins Realty Inc. to source a new build and then comfortably sell their home on a timeline that works for them. Contact us today if you have any questions regarding this market report or interest in future real estate transactions, or you can simply fill out the form below.