Waterloo Region Real Estate Market Update – March Edition
Last Updated on April 8, 2021
We’ve had yet another record-smashing month in February, compared to February 2020.
“Competition for homes continued to be extremely intense in February, leading to a record-breaking number of home sales for the month,” says Nicole Pohl, President of KWAR.
February saw an increase of 27.8% in sales for the month, compared to the same month last year, an increase of 66.7% compared to February, and again above the 10-year average.
“We continued to see dramatic increases in the average price in February due to the persistent and fierce competition for homes in our region combined with short supply,” says Pohl.
The average number of days to sell in February was 10 days, compared to 17 days in February 2020 and a previous 5 year average of 33.
597 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in February 2021, according to KWAR, up from the 10 year average of 407.
- Detached homes: 337 sold – 23.9% increase (from February 2020)
- Condominium Apartments: 101 sold – 57.8% increase
- Townhouses: 112 sold – 13.1% increase
- Semi-Detached Homes: 47 sold – 46.9% increase
The Average Sale Price Of All Residential Properties Sold In February
The president of KWAR notes that buyers are incredibly frustrated competing in this hyperactive market. The low inventory and mortgage rates are resulting in multiple offers, higher prices and creating a fear that they are missing out on the chance to become homeowners in this unprecedented market.
“The rise in the average price KWAR has been tracking the past several months has included some exceptional sale prices. The average price of a detached home hit yet another new milestone by exceeding $900,000 for the first time.”
The average price of a detached home hit a new milestone by exceeding $800,000 for the first time.
- All residential properties: $752,289 – 32.1% increase (from February 2020)
- Detached homes: $910,126 – 35.4% increase
- Apartment-Style Condominiums: $415,322 – 11.9% increase
- Townhomes: $609,566 – 37.5% increase
- Semi-detached Homes: $684,787 – 41.1% increase
New Home Listings in February
February saw an increase of 21% compared to February of the previous year and 15.7% increase over the previous 10-year average for February.
- There were 737 new listings added to the MLS® System in KW and area in February.
- The total number of homes available for sale in active status at the end of February was 295, a decrease of 33.6% compared to February of last year, and 73% below the previous ten-year average of 1,096 listings for February.
“The number of months of inventory in Waterloo region was 0.5 in February and 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.