The Market Guide To Luxury Property
Population growth and the emergence of the white-collar industry in Kitchener-Waterloo is fueling residential luxury property. Housing costs are between 30-50% cheaper in South Western Ontario compared to the GTA according to an RBC housing report. This perceived affordability along with a very strong local economy is driving a population boom for Waterloo Region.
Our area is the second-fastest-growing urban centre in Canada according to census data. It's also driving the sale of luxury housing in the region at a volume inconceivable 4 to 5 years ago. While some homeowners are stepping up from mid-tier equity gains, others are migrating in to take on premium positions within the local tech sector and building industry.
Strong Growth Leads To Booming Luxury Market
A rough metric for measuring the luxury market is the magical $1,000,000 threshold.
Granted, outside of Waterloo Region that may not buy much but locally this will typically get you a large lot and a 3000+ sq. ft. home.
In 2014, there were a total of 32 residential properties sold in Waterloo Region with a sale price of 1M+ ($1,000,000+) and in 2015 that number rose to 38. Since then we've seen a dramatic increase in luxury sales, in 2017 (our peak year) there were 165 residential transactions of 1M+ (that's an increase of 434% compared to 2014!)
So far in 2019, we are tracking just below the 2017 output for luxury residential sales, although the month of May 2019 was the second strongest on record with 27 transactions alone exceeding the 1M+ threshold.
Buying Luxury Property in Kitchener-Waterloo
Luxury property
When it comes to determining the correct market value for luxury real estate, a comparative analysis is important.
This means more than looking at past listings and sales. Photographs tell a very curated story (see Selling Luxury property in Kitchener-Waterloo below for more on this). Experience is perhaps more important in this segment of the market than any other.
At Benjamins Realty having built customs luxury homes, we can also provide a critical eye. Are the trims MDF or plaster mouldings? What type of flooring is that... engineered hardwood, luxury vinyl plank or solid oak? What is the value of the pool upgrade and landscaping in the backyard?
Finally, we also try to provide projections for long term growth potential and flag value-added improvements to target. Once a consensus on value is reached negotiations can be carried out confidently.
Luxury property
Selling Luxury Property in Kitchener-Waterloo
If you are considering selling a luxury residence in Waterloo Region, your choice of representation and marketing will be critical to determining the overall return. Like any item of worth, a luxury property must be showcased.
It should be put on display in such a way that doesn't just inventory the features and amenities but actually tells a story. That story should be so compelling Buyers can't help but imagining themselves a part of it. Then, a savvy and experienced agent can leverage that interest into a successful outcome for the Seller.
Here's how we do it at Benjamins Realty Inc.
Check Out Our Video at 34 Silverbirch Lane, A Gorgeous Custom Home...
Key Points For Luxury Property Sellers to Consider When Listing With Benjamins Realty Inc...
Photography and videography that tell a story, digital showcasing is vital and likely the first impression a Buyer will have of your home.
Complimentary (but not obligatory) home design consultation for staging with an award-winning interior design team
Paid digital and print advertising which presents the property to thousands outside of the MLS system and Realtor.ca
Transactional experience: As a boutique agency, all of our agents complete up to 30+ transactions a year. We're busy enough to be highly successful but never too busy to directly deal with our clients. We disagree with large team approaches where a client is handed off to a less experienced agent after an initial meeting with the realtor face they might have seen on the park bench.
Have Questions About Luxury Real Estate in Waterloo Region? Please Contact us!
In our experience at Benjamins Realty, most real estate transactions operate smoothly. Two or more parties agree to terms on a property while legal and financial professionals work alongside those parties to ensure the agreement is carried out in “good faith”. But what exactly does that mean?