Kitchener-Waterloo Real Estate Market October 2020
There were 758 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in September, the most ever recorded for the month.
September’s home sales represented an increase of 41.6 per cent compared to the same month last year, and an increase of 8 per cent compared to the previous month. The previous ten-year average number of residential sales for September is 460.
“This is far more home sales then what we would normally see in September as buyers continue to play catch up from the COVID-19 hindered spring market,” said Colleen Koehler, President of KWAR.
“While the pandemic has had devastating impacts on many aspects of our lives it has only solidified the importance of home and homeownership.”
Total residential sales in September included 431 detached homes (up 28.6 per cent from September 2019), and 93 condominium apartments (up 127 per cent). Sales also included 178 townhouses (up 43.5 per cent) and 54 semi-detached homes (up 59 per cent).
The average sale price of all residential properties sold in September increased 17.5 per cent to $637,691 compared to the same month last year, while detached homes sold for an average price of $768,762 an increase of 25 per cent.
During this same period, the average sale price for an apartment-style condominium was $390,690 for an increase of 13 per cent. Townhomes and semis sold for an average of $ 476,636 (up 8.7 per cent) and $544,874 (up 16.5 per cent) respectively.
The median price of all residential properties sold in September increased 13.7 per cent to $580,250 and the median price of a detached home during the same period increased 16.5 per cent to $676,000.
“We saw more new listings coming to the market in September which was welcome,” said Koehler. “However, demand continues to outpace supply.”
There were 929 new listings added to the MLS® System in KW and area last month, an increase of 13 per cent compared to September of last year, and 17.7 per cent more than the previous ten-year average for September.
The number of Months Supply (also known as absorption rate) continues to be very low at just 1 month for the month of September. The previous ten-year average supply of homes for September was 3.3 months, and in the past 5 years, the average supply for September was 2.2 months.
The year-to-date number of residential sales has increased 2.6% over 2019 indicating that the decreased activity in April and May has been more than made up in the past four months.
KWAR’s president believes one of the results of the pandemic is that it has forced many employers to realize their staff can in fact work remotely. This has freed employees to migrate from some large urban areas to more affordable areas such as Waterloo Region that offers a higher quality of life.
The average days to sell in September was 14 days, compared to 23 days in September 2019.
Halloween Fun in K-W
Although many of Kitchener-Waterloo’s Halloween events have already been cancelled due to COVID, fear not as scare seekers will still be able to get their frightful fix this year!
Bingemans Screampark Halloween tradition is set to go ahead from now until November 1st with all the necessary protocols in place to ensure a safe (but utterly terrifying!) experience. The horror has moved outside to allow for distancing, they will be limiting guest capacity and masks will be required.
Bingemans has also joined forces with THEMUSEUM to bring you some exciting kid-friendly fun. The Dinosaur Drive-Thru will take you back to the Mesozoic Era with 30 animatronic dinosaurs on display that you can tour from the comfort of your car between October 10th to October 25th.
Finally, if you stop by any of the Waterloo Public Library locations on Saturdays during October, kids will receive a special Halloween surprise bag full of treats and crafts! Whatever you end up doing this Halloween, make sure to stay safe and have fun! 🎃 👻
Calculating Closing Costs
House hunting is lots of fun but once you purchase a home, there are various fees you’ll be responsible for when closing time rolls around.
Your mortgage and down payment will cover the cost of your home but it’s important to proactively factor in the extra fees so you don’t get caught off guard. Here are some of the common costs to expect:
In order to arrange a mortgage, the bank will require a home appraisal. The cost of the home appraisal is usually passed onto the buyer but it can oftentimes be worked into the mortgage.
Title insurance is different than home insurance. Banks often require you to provide title insurance in order to arrange a mortgage, especially when a survey isn’t available.
Your real estate lawyer is responsible for ensuring that all legal and financial conditions have been met and that there are no outstanding charges against your new home.
Taxes & Adjustments
You’ll be responsible for paying land transfer tax as well as any monetary adjustments such as reimbursing the seller for prepaid property taxes or maintenance fees.
If you don’t have a large down payment, you’ll need to pay for mortgage insurance which varies depending on the size of your downpayment and the amount of your mortgage.
Closing costs vary depending on individual circumstances but they usually amount to around 3% of the purchase price. For a more accurate estimate, along with tips on how to reduce your closing costs, please reach out so we can discuss your options. Buying a home can be an emotional roller coaster but you'll definitely enjoy a smoother ride if you're aware of what lies ahead!
Reduce Your Bills & Chills
Higher energy bills are a harsh reality, especially now that so many of us are working from home, but just a few small changes can make a huge difference! Here are some energy-saving tips that will help you reduce your bills and chills:
Make Some Adjustments
Turning your thermostat down by just a few degrees can produce major savings. If you wear slippers and a cozy sweater, you won’t even notice the difference!
Set your ceiling fan to run clockwise at its lowest speed. This will pull cooler air upwards which then pushes the warmer air that sits up near the ceiling back down for you to enjoy.
Full of Hot Air
Change your furnace filter on a regular basis and consider having your furnace tuned up as regular maintenance will increase its efficiency and prevent general wear and tear.
Seal of Approval
Seal up any leaks around your windows and doors to help keep the cold air out. Older windows can be temporarily sealed with removable caulking so that they can be opened up again in the spring.
A Bright Idea
Open up the curtains and blinds during the day to allow sunlight to naturally heat up your home and then close them at night to keep the warm air in.
It doesn’t take much time or effort to implement these energy-saving solutions around the home but it’s oftentimes the simple things that are overlooked. If we change our daily habits just slightly, the results can add up to huge savings!