Kitchener-Waterloo Real Estate Market April 2021

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

There were 993 residential homes sold through the Multiple Listing Service® (MLS® System) of KWAR in March.

This was an increase of 72.7 per cent compared to March 2020, and an increase of 66 per cent compared to the previous month.

“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.”

Total residential sales in March included 593 detached (up 69.4 per cent from March 2020), and 124 condominium units (up 82.4 per cent). Sales also included 79 semi-detached homes (up 216 per cent) and 197 townhouses (up 49.2 per cent).

In March, the average sale price for all residential properties in the Kitchener-Waterloo area was $765,393. This represents a 30.8 per cent increase over March 2020, and a 1.5 per cent increase compared to February 2021.

The average price of a detached home was $899,460. This represents a 32.3 per cent increase from March 2020, and a decrease of 1.4 per cent compared to February 2021.

The average sale price for an apartment-style condominium was $423,470. This represents an increase of 12 per cent from March 2020, and an increase of 1.6 per cent compared to February 2021.

The average sale price for a townhouse was $622,258. This represents a 35.9 per cent increase from March 2020, and an increase of 2 per cent compared to February 2021.

The average sale price for a semi was $652,669. This represents an increase of 32.5 per cent compared to March 2020, and a decrease of 4.8 per cent compared to February 2021.

“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.

KWAR cautions that average sale price information can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value.

The MLS® Home Price Index (HPI) provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.

The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $738,200 in March. This represents a 33.4 per cent increase over March 2020 and a 4 per cent increase compared to February 2021.

The benchmark price for a detached home was $817,000. This represents a 34.4 per cent increase from March 2020 and 3.6 per cent increase compared to February 2021.

The benchmark price for an apartment-style condominium was $358,700. This represents a 14.9 per cent increase from March 2020 and a 5.1 per cent increase compared to February 2021.

The benchmark price for a townhouse is $554,900. This represents a 38.3 per cent increase from March 2020 and a 5.4 per cent increase compared to February 2021.

“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.”

There were 1,359 new listings added to the MLS® System in KW and area last month, an increase of 56.2 per cent compared to March of last year, and a 63.9 per cent increase compared to the previous ten-year average for March.

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

The total number of homes available for sale in active status at the end of March was 434, a decrease of 23.5 per cent compared to March of last year, and 63.5 per cent below the previous ten-year average of 1,188 listings for March.

The number of months of inventory 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.

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 days.

Dressing Your Home For Success

Even in a hot seller’s market, it’s important to properly prepare your home as it will help it sell even quicker and at a higher price! The following tips can be implemented with minimal cost and effort:

Curb Appeal
These days, outdoor living space is a coveted feature so create a great first impression by cutting the grass, tidying the yard, washing the exterior and cleaning the windows.

Grand Entrance
The foyer is another area where first impressions are key so remove excess belongings such as coats and shoes and ensure it’s well lit so that it appears as spacious as possible.

Clear the Clutter
Too much “stuff” will make your home appear much smaller than it actually is and in this market, buyers want space, so clean out your closets, garage, basement and attic.

It’s Nothing Personal
It’s important that buyers are able to imagine themselves living in your home, so depersonalize each room by taking down family photos and removing anything else that’ll make them feel as though they’re intruding.

Fix it First
Buyers love to exaggerate repair costs so take care of any repairs ahead of time. Even small things like leaky faucets and ripped carpeting will cause buyers to question what other repairs lurk beneath the surface.

Sneak Peek
Buyers will size up each and every room but they’ll also snoop through your cupboards and closets so make sure they’re organized, de-cluttered and spotlessly clean!

Flexible Space
Extra space for a home office, zoom room or home gym is growing in popularity due to the pandemic. If you have an extra room or even just a space that could be staged as a flex room, you’ll attract more buyers.

It’s often the little things that make a huge difference when it comes to creating a winning first impression. If you want to get top dollar for your property, it’s important to set some time aside to freshen up your home before it hits the market. It’s an investment that will definitely pay off!

Earth Day Around the Home

This April 22nd will mark the 51st anniversary of Earth Day! It was created back in 1970 to celebrate our planet and raise public awareness and now, Earth Day is celebrated in over 190 countries.

Traditional Earth Day events in K-W usually involve getting together with others in the community to clean up garbage or plant trees.

If your neighbourhood hasn’t organized anything this year, you can still celebrate the natural world by taking action at home. Here are a few ideas:
 
Turn Down the Heat
One easy trick to lower your energy costs is to turn down the temperature on your hot water heater. This easy adjustment can shave up to 5% off your bill each month!

April Showers
If you don’t already have one, now’s a great time to get a rain barrel as it will collect water that drains from your roof which you can use to water your garden or wash your car.

Let It All Hang Out
Drying your clothes outside on a clothesline not only means your laundry will smell fresh but it will also save your clothes from wearing out as dryers break down clothing fibres.

Fix Your Leaks
A leaky faucet that drips every few seconds can waste over 1,000 gallons of water each year which can be costly, especially if it’s a hot water leak.

Light It Up
Energy-efficient lightbulbs such as halogen incandescents, compact fluorescent lamps (CFLs) and light-emitting diodes (LEDs) typically use 25 – 80% less energy than other bulbs.

Reconnecting with nature is a great way to give back to our environment. The health and wellness benefits of enjoying time outside are well documented so this Earth Day, set some time aside to take a family bike ride, plant a tree in your yard or pick up litter on your street.

Pet Hair Removal Hack

We love our furry little friends but they can sometimes be a bit messy, especially when it comes to pet hair.

Vacuuming only does so much as pet hair tends to embed itself in carpet fibres so to get to the root of the issue, you need a secret weapon!

A simple window squeegee is all you need! Its sticky rubber strip is like a magnet that will instantly drag out all of that extra hair which can then be easily vacuumed up.

This handy pet hair hack works particularly well on areas that are hard to reach with vacuums such as the couch, stairs, your car or any other fabric-based surfaces that are drowning in pet hair.