Kitchener-Waterloo Real Estate Market November 2020
There were 691 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in October, the most ever recorded for the month.
October’s home sales represented an increase of 28 per cent compared to the same month last year, and a decrease of 9.6 per cent compared to the previous month. The previous ten-year average number of residential sales for October is 471.
“This is the fourth month in a row we have set a monthly record number of home sales,” said Colleen Koehler, President of KWAR. “Demand for homes in October continued to strongly outpace supply in Kitchener-Waterloo and area.”
Total residential sales in October included 417 detached homes (up 25.6 per cent from October 2019), and 94 condominium apartments (up 34 per cent). Sales also included 134 townhouses (up 26.4 per cent) and 46 semi-detached homes (up 48.3 per cent).
The average sale price of all residential properties sold in October increased 19.4 per cent to $635,301 compared to the same month last year, while detached homes sold for an average price of $742,596 an increase of 21.7 per cent.
During this same period, the average sale price for an apartment-style condominium was $395,627 for an increase of 14.8 per cent. Townhomes and semis sold for an average of $499,641 (up 15.6 per cent) and $539,434 (up 16.6 per cent) respectively.
The median price of all residential properties sold in October increased 19.2 per cent to $595,000 and the median price of a detached home during the same period increased 20.5 per cent to $686,000.
“Consumers buying/selling real estate continues to be one of the few shining lights to help Ontario’s economy recover from the pandemic,” said Koehler. “We’re continuing to see more buyers than sellers, including additional buyers migrating here from out of the region looking for the quality of life this region offers.”
There were 783 new listings added to the MLS® System in KW and area last month, an increase of 16 per cent compared to October of last year, and 11.5 per cent more than the previous ten-year average for October.
The number of Months Supply (also known as absorption rate) continues to be very low at just 1 month for the month of October. The previous ten-year average supply of homes for October was 3.2 months, and in the past 5 years, the average supply for October was 1.8 months.
KWAR’s president says the market we have been experiencing is extraordinary. “While our association does not track where buyers are coming through the MLS® System, I can say unequivocally we are seeing strong demand from GTA buyers."
"What people want and need in a home, and where they want to be located has been redefined in a very short period. Waterloo region is quite rightly, a highly desirable place to own a home.”
The average days to sell in October was 13 days, compared to 23 days in October 2019.
THE WATERLOO SHOEBOX PROJECT FOR SHELTERS
The Shoebox Project for Shelters collects and distributes gift-filled shoeboxes to women who have been impacted by homelessness.
This amazing grassroots organization was founded 9 years ago in Toronto and now reaches out to women all across Canada and the U.S. including right here in Waterloo!
Each shoebox is filled with a mix of essentials and luxury items that you can choose from. Shoeboxes aren’t being collected this year, due to the pandemic, but volunteers are still working hard to make sure women living in shelters don’t feel forgotten about this holiday season.
This year, for the first time ever, you can fill a virtual shoebox from the comfort of your home by selecting from a variety of online items that range from deodorant and lip balm to socks and winter hats. You can even add a personalized note if you like.
The purchase of your custom-designed shoebox is completely tax-deductible and 100% of the funds will be used by volunteers to help get gift cards and essentials into the hands of some of the most vulnerable women in and around the Waterloo Region.
This small gesture of kindness will make an immediate positive impact! The Waterloo Shoebox Project is a unique opportunity to give back as it’s a powerful reminder for women who are struggling in our community that they haven’t been forgotten about.
THE IMPORTANCE OF MORTGAGE PRE-APPROVAL
Looking at homes is exciting but before you get carried away, it’s important to sort out your financing as it can save you thousands of dollars and provide you with valuable peace of mind.
Getting pre-approved is easy! A mortgage lender will review your finances and credit history in order to determine the maximum amount they can lend you. Depending on your situation, they may even be able to make recommendations that could provide you with more favourable options.
In addition, most lenders will also secure the current interest rate for a certain time period to protect you in case rates suddenly increase. This small, easy step can potentially save you thousands of dollars but if you leave it till the end, you could miss out so it’s important to be proactive!
At any rate, it’s important to set a budget before you start home shopping because if you start by looking at homes above your price range, it’ll be really hard to readjust to less expensive homes later on.
There are various online tools that can estimate what you qualify for but it’s best to talk to a mortgage specialist to get a more accurate assessment. That way, they’ll be able to review your finances and look into your credit history in order to structure your application in the best possible light.
A mortgage specialist will also explain the various options associated with mortgages. Interest rates are important but there are many other items to consider such as the type of mortgage (fixed/variable or open/closed) as well as the loan's duration. You’ll want to be aware of all the options so that you can determine which one best suits your current and future needs.
Finally, a major advantage of mortgage pre-approval shines through when it comes time to make an offer on your dream home! Unconditional offers are significantly more attractive to sellers and in the case of multiple offers, it could mean the difference between getting the home of your dreams or losing it. If you still need to make the offer conditional on financing, you'll at least be able to attach the pre-approval to your offer.
Planning ahead and getting a mortgage pre-approval can save you thousands of dollars, eliminate countless hours of stress and give you a stronger negotiating position when it comes time to make an offer. Getting pre-approved is easy, there’s no obligation and it doesn’t cost a cent, so please reach out if you have any questions!
PET-PROOFING YOUR CHRISTMAS TREE
Cats and dogs are usually curious about anything and everything when it comes to Christmas, especially a huge tree with shiny objects dangling from it! Here are a few tips to help keep your pets and your tree safe and sound this holiday season:
Safe & Secure
Fully secure the tree by placing it into a solid base and fixing it to the wall.
Block access to all electrical cords so your pets don’t chew on them.
Wat-er You Doing?
Tree water can contain fertilizers and bacteria so make sure your pets can’t get to it.
Hang any fragile ornaments up high and avoid tinsel and edible items such as candy canes.
Holly, mistletoe and poinsettias can be toxic to pets so be sure to keep them out of reach.
Decorating at Christmas time is always fun but if you have mischievous furry friends, it’s important to take a few proactive precautions. Once you’ve pet-proofed your tree, you can start piling presents underneath it for them to sniff out!