Waterloo Region Real Estate Market Update – November Edition
Last Updated on November 11, 2020
In the November Market Update, the trend of the past few months continues with another record-breaking month for October, again selling the most homes ever recorded for the month.
Home value continues to grow and hold stable, revealing positive gains. October saw an increase of 28% in sales for the month, compared to the same month last year, and above the 10-year average.
“This is the fourth month in a row we have set a monthly record number of home sales,” said Colleen Koehler, President of KWAR. “Demand for homes in October continued to strongly outpace supply in Kitchener-Waterloo and area.”
The average days to sell in October was 13 days, compared to 23 days in October 2019. 691 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in October 2020, according to KWAR, up from the 10 year average of 471.
- Detached homes: 417 sold – 25.6% increase (from October 2019)
- Condominium Apartments: 94 sold – 34% increase
- Townhouses: 134 sold – 26.4% increase
- Semi-Detached Homes: 46 sold – 48.3% increase
The Average Sale Price Of All Residential Properties Sold In October
“Consumers buying/selling real estate continues to be one of the few shining lights to help Ontario’s economy recover from the pandemic,” said Koehler. “We’re continuing to see more buyers than sellers, including additional buyers migrating here from out of the region looking for the quality of life this region offers.”
- All residential properties: $635,301 – 19.4% increase (from October 2019)
- Detached homes: $742,596 – 21.7% increase
- Apartment-Style Condominiums: $395,627 – 14.8% increase
- Townhomes: $499,641 – 15.6% increase
- Semi-detached Homes: $539,434 – 16.6% increase
New Home Listings in October
October saw an increase of 16% compared to October of the previous year and 11.5% over the previous 10-year average for October.
- There were 783 new listings added to the MLS® System in KW and area in October.
- The median price of all residential properties sold in October increased 19.2% to $595,000 and the median price of a detached home during the same period increased 20.5% to $686,000.
- The absorption rate continues to be very low, at 1 month. (The previous 5-year average for October was 1.8 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 says the market we have been experiencing is extraordinary.
“While our association does not track where buyers are coming through the MLS® System, I can say, unequivocally, we are seeing strong demand from GTA buyers. What people want and need in a home, and where they want to be located has been redefined in a very short period. Waterloo region is quite rightly, a highly desirable place to own a home.”
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.