Kitchener-Waterloo Real Estate Market March 2021

There were 597 residential homes sold through the Multiple Listing Service® (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in February.

This was an increase of 27.8 per cent compared to February 2020, and an increase of 66.7 per cent compared to the previous month. The previous 10-year average number of residential sales for February is 407.

“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.

Total residential sales in February included 337 detached (up 23.9 per cent from February 2020), and 101 condominium units (up 57.8 per cent). Sales also included 47 semi-detached homes (up 46.9 per cent) and 112 townhouses (up 13.1 per cent).

In February, the average sale price of all residential properties sold in 2021 increased by 32.1 per cent to $752,289 compared to the same month last year.

Meanwhile, the average price of a detached home hit yet another new milestone by exceeding 900-thousand-dollars for the first time, coming in at $910,126 an increase of 35.4 per cent.

During this same period, the average sale price for an apartment-style condominium was $415,322 for an increase of 11.9 per cent. Townhomes and semis sold for an average of $609,566 (up 37.5 per cent) and $684,787 (up 41.1 per cent) respectively.

“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 president of KWAR notes that buyers are very frustrated competing in this hyperactive market. The low inventory and mortgage rates are resulting in multiple offers, higher prices and creating a fear they are missing out on the chance to become homeowners in this unprecedented market.

“The rise in the average price we’ve been tracking the past several months has included some exceptional sale prices. That’s why this month and going forward we will also be including the MLS® HPI to provide a clearer picture of our local housing market trends.”

The MLS® HPI is a sophisticated statistical model and more stable price indicator than average or median price measures because it considers how the features of a home affects its price – such as age, number of bedrooms, and number of bathrooms.

The MLS® Home Price Index composite benchmark price for all residential properties in Kitchener-Waterloo was $709,600 in February. This represents a 27.9 per cent increase over February 2020 and a 5.6 per cent increase compared to January 2021.

The benchmark price for a detached home was $788,500. This represents a 28.8 per cent increase from February 2020 and 6.1 per cent increase compared to January 2021.

The benchmark price for an apartment-style condominium was $341,200. This represents a 13.9 per cent increase from February 2020 and a 0.1 per cent increase compared to January 2021.

The benchmark price for a townhouse is $526,700. This represents a 33.1per cent increase from February 2020 and a 6 per cent increase compared to January 2021.

There were 737 new listings added to the MLS® System in KW and area last month, an increase of 21 per cent compared to February of last year, and a 15.7 per cent increase compared to the previous ten-year average for February.

The total number of homes available for sale in active status at the end of February was 295, a decrease of 33.6 per cent compared to February of last year, and 73 per cent 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.

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 days.

K-W Walking Tours

We’re spending more time at home than ever before so creating more living space for extra privacy is on everyone’s mind.

Basements are a great option but low ceilings and limited light can sometimes make it a hard spot to retreat to. Here are a few ways to brighten things up in this often-overlooked space:

Fresh Coat
Paint the walls a light shade and the ceiling even lighter to help give the illusion of added height.

Lighten Up
Recessed LED lights work really well in basements since they blend into the ceiling, provide bright light and are energy efficient.

Floored
Try to maintain the same flooring material throughout the entire basement as it will help the space appear much larger.

Open Door Policy
Glass doors will help open up the area while still giving you the option for privacy.

Mirror Mirror
Place mirrors across from your basement windows in order to maximize the impact of natural light.

Power Plants
Add a few plants to help liven things up! Artificial plants have come a long way and are perfect for darker areas.

Creative Curtains
Hanging long, light curtains will give the illusion of added height to a room. Drapes are also perfect for hiding messy areas.

These are just a few easy and inexpensive ways to transform your basement from dark and dreary to bright and beautiful. All it takes is a few simple adjustments and before you know it, your basement will become one of your most popular hangouts!

Buyer Tips for a Seller’s Market

Although nothing is ever certain when it comes to real estate, it’s expected that 2021 will continue to be a strong seller’s market as there’s a limited supply of homes to satisfy the growing demand of buyers.

As a result, multiple offers are common which means homes often sell quickly and for well over the asking price.

If you’re a buyer who’s struggling to navigate this challenging market, here are a few ways to ease some of the frustrations you’re likely to encounter on your journey to finding the perfect home:

Seek Pre-Approval
Before you even start looking at homes, the first thing you’ll want to do is get pre-approved for a mortgage so you’ll know exactly how much you’re able to spend.

Be Flexible
You don’t want to make too many compromises when searching for a home but try to keep an open mind when it comes to “must-haves” vs. “nice-to-haves”.

Move Quickly
Many homes receive multiple offers so when you find the perfect home, it’s important to be prepared and act quickly before too many other buyers start to show interest.

Easygoing Terms
Do your best to match their preferred closing date and don’t ask for any items that are excluded such as the dining room chandelier or the fridge and stove.

Larger Deposit
Every little bit helps when you’re up against multiple offers so if possible, consider offering a larger deposit as it will help your offer stand out from the others.

Get Personal
Selling a home can be a very emotional experience so consider writing a heartfelt note to the seller expressing what you love about their home and how you and your family hope to give their old home a new home 🙂

Professional Help
Conditions can quickly change in a hot market so it’s important to be on top of the latest market trends. Real estate agents are extremely knowledgeable when it comes to navigating and negotiating turbulent market conditions.

Maneuvering the challenges of a seller’s market can be exhausting at times but if you’re prepared, it can also be a rewarding and fulfilling experience that will eventually land you the perfect home! If you ever have any questions about the K-W real estate market, please don’t hesitate to get in touch.

Simple Storage Solutions

People are putting a high value on storage these days so every square inch counts! Here are a few easy ways to add more storage space to your home:

Hallway Helper
Space is often tight in the entryway of a home so hang an organizer over the back of your hallway closet to hide items such as hats, scarves and the dog leash.

Store More
Vertical organizers such as rolling carts or shelves that slide into skinny spots are an easy and inexpensive way to boost storage space.

Sleep Easy
It’s important that bedrooms be clutter-free in order to create a calming atmosphere. Under-the-bed storage boxes are a great way to hide away items that are rarely used.

Awkward Areas
Awkward corners of the home such as a recessed area, a corner nook or an alcove are great spots to incorporate shelves and cubbies.

Furniture Finds
Vintage finds such as old trunks or chests can double up as end tables while also allowing you to store items such as blankets and pillows.

Closet Clean
If you’re planning on selling, remove at least half of the items from your closets and cupboards in order to make them appear larger. Also, get rid of anything that’s sitting on your closet floors. 

Buyers can never get enough storage space so if they see your closets and cupboards bursting at the seams, they may start to think that maybe your home isn’t big enough. 

Some of the above points may seem obvious but they’re often overlooked. Decluttering and adding more storage will bring harmony to your living space and it’ll definitely pay off if you’re planning on putting your home on the market.