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Kitchener-Waterloo Real Estate Market Report April 2018

 

Kitchener-Waterloo Real Estate Market Report April 2018

Welcome to the WRX Property Group website and blog. With a new month upon us, it’s time once more for the WRX Monthly Market Report. In this April edition, we’ll be looking back at the month of March, and what went on within the world of Kitchener-Waterloo real estate.


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Overview

There are two broad headlines regarding Kitchener-Waterloo real estate data in the month of March, 2018: sales numbers are drastically up from February 2018, but down from March of 2017. The overall takeaway from this is that Kitchener-Waterloo remains an attractive market for sellers, and a competitive market for buyers. Furthermore, with demand for properties rising (again, March was much more active than the prior month), multiple offers on any given home is a likely scenario. Indeed, Kitchener-Waterloo continues to fall short in terms of overall listings through the MLS (Multiple Listing Service), with far fewer houses on the market at any given time than the prior ten year average (the total number of active residential listings through Kitchener-Waterloo’s MLS to the end of March was 792, versus the decade’s average of 1424). One thing sellers need to keep in mind, though, is that this does not mean you are assured of a lucrative sale without properly preparing your property – Kitchener-Waterloo’s a competitive market, yes, but to ensure a speedy sale, you need to make sure your property stands out. If you decide you’d like some professional expertise (whether you’re selling a home in Kitchener-Waterloo or looking to buy a home in Kitchener-Waterloo) we invite you to contact us at your convenience – we know this market and we’re prepared to work to ensure the best possible outcome for you.

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Sales by Type of Home

Before reading this section, it might be helpful to check out our article on Common Types of Homes for Sale in Kitchener-Waterloo to clarify what the various terms mean. Breaking it down by the types of homes that were sold, let’s start with detached: a total of 310 detached homes were sold in March of 2018, which is down 29.6 per cent from last year. 40 semi-detached homes were sold, which is down 40.3 per cent from last year. In terms of condominium units, there were 136 sales in total (note that this number includes every variety of condominium, including but not limited to townhomes, apartments, and even detached units) – this is down 17.6 per cent from last year. Finally, there was one type of property that increased over March of 2017: freehold townhouses, which accounted for 52 sales (up 8.3 per cent from last year). Let’s move on to total numbers per quadrant of Kitchener-Waterloo.

Waterloo East

Waterloo East saw a total of 72 homes sold in March of 2018, up from 56 in February 2018. The average sale price was $519,669, with the average price per square foot coming out as $332. The average number of days until a completed sale was an even 20.

Waterloo West

In Waterloo West, there were 102 homes sold overall – a big leap forward from February 2018’s total of 72. The average price here came out as $535,979, and the average price per square foot was $329. The average number of days on the market in Waterloo West was the highest within Kitchener-Waterloo at 22 – but still quite low, at just over three weeks.


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Kitchener East

Kitchener East had the lowest overall total of homes sold in March of 2018: 68 in total. The average sale price was $489,503, with an average price per square foot of $317. In terms of average days needed before a finalized sale, Kitchener East led the pack this month: a mere 17 days on the market.

Kitchener West

As usual, Kitchener West dominated Kitchener-Waterloo and the broader area in terms of overall sales. There were a total 242 homes sold in Kitchener West in March of 2018. Incredibly, this is the same number of the other three quadrants combined (it’s also a significant increase over February 2018’s Kitchener West total of 163). We’re not exaggerating when we say that Kitchener West, and especially its southwestern and southern neighbourhoods, is a hot market. The average sale price was $443,693, with an average price per square foot of $313. The average number of days on the market before sale was 20.

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Overall

Across Kitchener-Waterloo, there were a total of 484 homes sold in March of 2018, with an average sale price of $480,880, and an average price per square foot of $323. The overall average number of days required to sell was 20.

Interestingly, both the average price and the median price of residential real estate sales in Kitchener-Waterloo and the surrounding area have increased every single year between 2009 and 2017 – sometimes significantly. Between 2017 and 2018, though, the average prices actually went down, and the median price climbed only slightly compared to the past few years (the median price of Kitchener-Waterloo sales, for example, increased by just $500). This is a unique development that stands out on the graph: what was once a noticeable incline has not only plateaued, but also began to recede (at least for the time being). Of course, this could just be an anomaly, but there is perhaps a more concrete explanation. The new mortgage stress test rules that were introduced on January 1st, 2018 may be steering prospective buyers away from homes with higher price points, and towards homes for which they’re either more likely to be approved for a mortgage, or for which they’ll be able to handle a larger down payment. We’ve discussed the new rules over the past few months, but to reiterate: the new mortgage stress test rules mean banks/lenders will assess potential borrowers’ ability to make mortgage payments at a 2 per cent higher interest rate than that which they’re applying for.

WRX Property Group will continue to monitor and assess developments like these, and share our findings and interpretations with you. The effects of the stress test, and the broader state of the market itself, are still revealing themselves. Indeed, looking back at February and January of 2018, the average and median prices did climb over years past, so we’ll have to see what happens this month to understand the broader implications.

Read Our Monthly Market Report

 

Wrapping Up

Our Market Reports are designed to provide anyone interested in Kitchener-Waterloo real estate with an overview of the trends and developments within the region, as well as an analysis of what the data means. If you’re looking at a specific area, or you have specific goals in mind – whether you’re buying a home or selling a home – this information can help you in your decision making process, but we invite you to contact us so one of our expert Realtors can take a look at your specific needs, and answer any questions you may have. And as always, WRX Property Group is happy to help, however we can.

Written by Will Kummer

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