Local Real Estate Sets
New Benchmark Spring 2019
As the spring has drawn to a close and we head into the warmer summer months, Benjamins Realty provides this market review to update our readers on the happenings in our local real estate market.
Kitchener-Waterloo Sales Stats
The residential real estate market in Kitchener-Waterloo set a new benchmark for average sale values this spring surpassing the previous apex of April 2017 ($512,656) by a considerable amount. In May of 2019, the average sale price for residential real estate registered with the Kitchener-Waterloo real estate board was $534,348, this also represents an increase of 10.6% year over from May of 2018. Detached homes have also seen a strong rebound from slower value growth in 2018, prices were up year over by 9.1% for May (average detached sales value of $623,289) and also surpassed the $600k mark for the first time in April of 2019. Apartment condos were +11.3%, townhomes + 9.8% and semis were +9.3% year over for May 2019.
Our local market has continued to outpace many urban real estate markets in Canada. We are now the second fastest growing urban centre in Canada. Combined with relative affordability in comparison to neighbouring GTA cities, it’s creating another banner year for local property owners. Furthermore, a drop in interest rates to help a sluggish national economy and bolster against continued fears of trade wars has resulted in some very attractive fixed rate offers from mortgage lenders (looking for financing options re-fi or new? Contact Us for a referral to industry experts). This can also help to explain the resurgent value growth in the more expensive end of the residential market, detached homes. Lower rates are contributing to a brisk buying season and easing affordability pressure from the mortgage stress test. Buyers should take note that this does not appear to be a permanent drop in rates and recent inflation numbers confirm that the Central Bank’s position remains likely entrenched towards long term rate hikes.
Finally, you’ve likely noticed the weather this spring has been wet and cloudy, unusually so as confirmed by the UW weather station. This has resulted in a flurry of real estate activity in the back-half of the spring market the weather improves. Sellers can perhaps expect an extension to the buying season by a few weeks to make up for some lost time in rainy May. Listing activity continues to remain strong in June and with interest rates at their current lows, there may be a short window left to capitalize on Buyers taking advantage of optimal financing conditions.