Waterloo Region Real Estate Market Update – September Edition
Last Updated on October 13, 2020
August closes off the summer of 2020 with another record-breaking month, selling the most homes ever recorded for the month.
Home value remains stable and growing, showing gains across the board. August saw an increase of 48% in sales for the month, compared to the same month last year, and again, well above the 10-year average.
“Waterloo Region has had an extremely hot market all summer,” said Colleen Koehler, President of KWAR. “Following a spring market where most people were observing physical distancing guidelines, sales in August continued to be very active with demand continuing to outstrip supply forcing buyers to act quickly.”
The average days to sell in August was 16 days, compared to 26 days in August 2019. 686 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in August 2020, according to KWAR, up from the 10 year average of 470.
- Detached homes: 433 sold – 61.5% increase (from August 2019)
- Condominium Apartments: 79 sold – 38.5% increase
- Townhouses: 138 sold – 40% increase
- Semi-Detached Homes: 39 sold – no change
The Average Sale Price Of All Residential Properties Sold In August
“This summer, local home sales rebounded from the COVID-19 slow down we had in the spring,” said Koehler. “While not as heated as July, August sales were another month for the record books, as home buyers returned to the market with renewed intensity.”
- All residential properties: $634,409 – 21% increase (from August 2019)
- Detached homes: $734,427 – 18.9% increase
- Apartment-Style Condominiums: $386,972 – 16% increase
- Townhomes: $495,932 – 18.3% increase
- Semi-detached Homes: $535,330 – 21.1% increase
New Home Listings in August
August saw an increase of 43.8% compared to August of the previous year and 26.4% over the previous 10-year average for August.
- There were 833 new listings added to the MLS® System in KW and area in August.
- The total number of homes available for sale in active status at the end of August was 592, a decrease of 32.6% compared to August 2019.
- The absorption rate remains very low, at 1 month. (The previous 5-year average for August was 2.2 months.)
Safety First / Digital First
Koehler advises buyers to speak with their Realtor about the digital tools they use to minimize the need for direct physical contact. We must ensure that all of Health Canada’s guidelines are in place to reduce the risk of transmission. As we have previously stated, we have been a digital-first Real Estate Brokerage from day one, with the tools and experience to help you.
- All of our listings include a full online 360-degree virtual tour, so you may continue enjoying browsing properties from the comfort of your home.
- Electronic signature support for all documents.
- Our online move-in support platform.
- A private property web portal for Buyers.
- Online and video conferencing tools to enable Virtual Meetings.
What’s Ahead for the Real Estate Market?
The Bank of Canada lowered its five-year conventional mortgage rate on August 12, from 4.94% to 4.79% — this is the second time it has reduced the qualifying rate in the last three months. The last time was back in May when the rate changed from 5.04% to 4.94%. According to James Laird, co-founder of Ratehub.ca and president of CanWise Financial, this change to the benchmark qualifying rate will increase homebuyers’ affordability by 1.5%.
“Over the last few years, rule changes have made it harder for Canadians to qualify, so the recent reductions in the benchmark qualifying rate is welcome news for first-time homebuyers hoping to enter the housing market,” said Laird.