Waterloo Region Real Estate Market Update – February Edition
Last Updated on March 9, 2021
2021 has started off strong with an above normal number of homes sold in January, compared to January 2020.
January saw an increase of 24.9% in sales for the month, compared to the same month last year, and above the 10-year average.
“January’s home sales were more active than what we typically see this time of year,” says Nicole Pohl, President of KWAR. “But nothing has been typical about our housing market.”
The average number of days to sell in January was 16 days, compared to 22 days in January 2020 and a previous 5 year average of 30. 351 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in January 2021, according to KWAR, up from the 10 year average of 286.
- Detached homes: 201 sold – 31.3% increase (from January 2020)
- Condominium Apartments: 71 sold – 97% increase
- Townhouses: 56 sold – 17.6% decrease
- Semi-Detached Homes: 21 sold – unchanged
The Average Sale Price Of All Residential Properties Sold In January
“With demand for homes unabated and consumer preferences leaning predominantly toward single detached homes, in January we saw buyers paying a premium for this property type,” says Pohl. “Conversely, even as condo sales were increasing in January, we saw prices for this style of housing soften by comparison.”
The average price of a detached home hit a new milestone by exceeding $800,000 for the first time.
- All residential properties: $695,582 – 23.9% increase (from January 2020)
- Detached homes: $853,945 – 27.3% increase
- Apartment-Style Condominiums: $383,196 – 1.4% decrease
- Townhomes: $566,345 – 29% increase
- Semi-detached Homes: $626,512 – 29.3% increase
New Home Listings in January
January saw a decrease of 7.4% compared to January of the previous year and 37.6% decrease over the previous 10-year average for January.
- There were 432 new listings added to the MLS® System in KW and area in January.
- The median price of all residential properties sold in January increased 25.9% to $680,000 and the median price of a detached home during the same period increased 23.3% to $801,500.
“The number of months of inventory in Waterloo region has numbered less than 1 month since October. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales,” KWAR’s president explains.
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 continue to be strong in 2021, after a record-breaking year in 2020.
KWAR’s president points to supply not being able to keep up with continuing demand, much of it coming from the GTA, for the strong increases in home prices in Waterloo Region and in many other parts across the province.
Competition continues to be fierce, and KWAR President, Nicole 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.