Waterloo Region Real Estate Market Update – December Edition
Last Updated on January 19, 2021
The 2020 trend continues into November with the fifth consecutive record-breaking month, selling the most homes ever recorded for the month.
Home value continues to remain stable across the board. November saw an increase of 35% in sales for the month, compared to the same month last year, and above the 10-year average.
“We are now well beyond any pent-up demand from the first lockdown,” said Nicole Pohl, President of KWAR. “Now we’re simply dealing with straight-up demand for our community as an attractive place to put down roots, and the current COVID-19 pandemic is only further fuelling the already hot market and elevating Waterloo region as a desirable place to own a home.”
The average number of days to sell in November was 14 days, compared to 28 days in November 2019. 575 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in November 2020, according to KWAR, up from the 10 year average of 433.
- Detached homes: 341 sold – 28.6% increase (from November 2019)
- Condominium Apartments: 82 sold – 60.7% increase
- Townhouses: 112 sold – 53.4% increase
- Semi-Detached Homes: 40 sold – 5.2% increase
The Average Sale Price Of All Residential Properties Sold In November
“Prices continued to climb in November as buyers across all price points compete for listings as soon as they come on the market,” said Pohl. “The number of available properties going up for sale simply can’t keep up to the number of people wanting to purchase them.”
- All residential properties: $637,336 – 13% increase (from November 2019)
- Detached homes: $753,641 – 14.4% increase
- Apartment-Style Condominiums: $400,882 – 12% increase
- Townhomes: $482,901 – 8.6% increase
- Semi-detached Homes: $562,988 – 30.4% increase
New Home Listings in November
November saw an increase of 34.8% compared to November of the previous year and 13% over the previous 10-year average for November.
- There were 584 new listings added to the MLS® System in KW and area in November.
- The median price of all residential properties sold in November increased 16.5% to $600,000 and the median price of a detached home during the same period increased 15% to $685,000.
- The absorption rate continues to be very low, at 1 month. (The previous 5-year average for November was 1.8 months.)
Safety First / Digital First
Pohl 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?
Canada’s housing markets have shattered records since the early summer. During the first nine months of this year, 402,578 homes changed hands over Canadian MLS® Systems, a nearly 6% jump from the same period in 2019.
KWAR’s president says the sales-price-to-list-price ratio for all residential properties sold in November was 107.9%.
“The only other time I’ve seen the sale to list ratio this high was in May of 2017 when it hit 108.6%,” says Pohl.
For comparison, in 2019, the monthly close price to list price ratio was at or near 100% from January through to December. Since August it has been over 105%.
With competition this fierce, Pohl says working with a local REALTOR® has never been more important.
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.