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Waterloo Region Real Estate Market Update – April Edition

Last Updated on April 9, 2021

In March, the Kitchener-Waterloo Association of REALTORS® (KWAR) posted the highest number of monthly home sales in the board’s history

“This is the first time we’ve sold more than 900 homes in a single month,” says Nicole Pohl, President of KWAR. “The second highest number of sales occurred in May 2017 when there were 816 sales through our MLS® System.”

March saw an increase of 72.7% in sales for the month, compared to the same month last year, an increase of 66% compared to February, and again above the 10-year average.

“On a year-over-year basis we continued to see huge price increases in the average price in March, however, compared to February we are seeing some signs that perhaps prices may be starting to stabilize a bit,” says Pohl.

The average number of days to sell in March was 8 days, compared to 16 days in March 2020 and a previous 5 year average of 21. 

993 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in March 2021, according to KWAR, up from the 10 year average of 552.  

  • Detached homes: 593 sold – 69.4% increase (from March 2020)
  • Condominium Apartments: 124 sold – 82.4% increase
  • Townhouses: 197 sold – 49.2% increase
  • Semi-Detached Homes: 79 sold – 216% increase

The Average Sale Price Of All Residential Properties Sold In March

“On a year-over-year basis we continued to see huge price increases in the average price in March, however, compared to February we are seeing some signs that perhaps prices may be starting to stabilize a bit,” says Pohl.

  • All residential properties: $765,393 – 30.8% increase (from March 2020)
  • Detached homes: $899,460 – 32.3% increase
  • Apartment-Style Condominiums: $$423,470 – 12% increase
  • Townhomes: $$622,258 – 35.9% increase
  • Semi-Detached Homes: $652,669 – 32.5% increase

New Home Listings in March

“In addition to the record number of sales in March, we also had a record number of newly listed properties come on the market,” says Pohl. “The number of new listings last month was the most of any month, and the highest number since May of 2017 when there were 1,271 new listings.”

March saw an increase of 56.2% compared to March of the previous year and 63.9% increase over the previous 10-year average for March.

  • There were 1,359  new listings added to the MLS® System in KW and area in March.
  • The total number of homes available for sale in active status at the end of March was 434, a decrease of 23.5% compared to March of last year, and 63.5% below the previous ten-year average of 1,188 listings for March.

“The number of months of inventory in Waterloo region was 0.7 in March 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.

  1. 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. 
  2. Electronic signature support for all documents.
  3. Our online move-in support platform.
  4. A private property web portal for Buyers.
  5. Online and video conferencing tools to enable Virtual Meetings.

What’s Ahead for the Real Estate Market?

Canada’s housing markets continue to break records in 2021, after a record-breaking year in 2020, though we are beginning to see signs that prices are starting to stabilize. 

Pohl notes while the additional inventory is welcome, home buying demand continues to substantially outpace supply.

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.

We hope you enjoyed our update for this month, and be sure to follow us on Facebook, LinkedIn, and Twitter for more information and updates. 

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