Waterloo Region Real Estate Market Update – October Edition
Last Updated on November 11, 2020
Yet another record-breaking month for September, again selling the most homes ever recorded for the month.
Home value still holds stable and growing, showing positive gains. September saw an increase of 41.6% in sales for the month, compared to the same month last year, and again, well above the 10-year average.
“This is far more home sales then what we would normally see in September as buyers continue to play catch up from the COVID-19 hindered spring market,” said Colleen Koehler, President of KWAR. “While the pandemic has had devastating impacts on many aspects of our lives it has only solidified the importance of home and homeownership.”
The average days to sell in September was 14 days, compared to 23 days in September 2019. 758 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in September 2020, according to KWAR, up from the 10 year average of 460.
- Detached homes: 431 sold – 28.6% increase (from September 2019)
- Condominium Apartments: 93 sold – 127% increase
- Townhouses: 178 sold – 43.5% increase
- Semi-Detached Homes: 54 sold – 59% increase
The Average Sale Price Of All Residential Properties Sold In September
“We saw more new listings coming to the market in September which was welcome,” said Koehler. “However, demand continues to outpace supply.”
- All residential properties: $637,691 – 17.5% increase (from September 2019)
- Detached homes: $768,762 – 25% increase
- Apartment-Style Condominiums: $390,690 – 13% increase
- Townhomes: $476,636 – 8.7% increase
- Semi-detached Homes: $544,874 – 16.5% increase
New Home Listings in September
September saw an increase of 13% compared to September of the previous year and 17.7% over the previous 10-year average for September.
- There were 929 new listings added to the MLS® System in KW and area in September.
- The year-to-date number of residential sales has increased 2.6% over 2019 indicating that the decreased activity in April and May has been more than made up in the past four months.
- The absorption rate remains very low, at 1 month. (The previous 5-year average for September 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?
KWAR’s president believes one of the results of the pandemic is that it has forced many employers to realize their staff can in fact work remotely. This has freed employees to migrate from some large urban areas to more affordable areas such as Waterloo Region that offers a higher quality of life.
To help encourage new listings and address our supply shortage, Ontario’s REALTORS® are asking the government to introduce a short-term Land Transfer Tax holiday. More information about this and other proposals can be read in the Ontario Real Estate Association’s (OREA) recently released policy report, Rebuilding Ontario: A Framework for Recovery.