Kitchener-Waterloo Real Estate Market December 2021

There were 597 residential homes sold last month through the Multiple Listing Service® of the Kitchener-Waterloo Association of REALTORS® setting a new record high for November.

Compared to the same month last year, November sales were up 4.4% and on par with last month. The previous ten-year average number of residential sales for November is 446.
 
“The elevated pace of home sales we’ve seen for the past year and a half showed no sign of slowing down in November,” says KWAR’s president, Megan Bell.

“Despite some speculation of there being a housing market correction in store for Waterloo Region, sustained homebuying demand combined with a record low level of inventory in November produced continued price growth in the MLS® HPI benchmark price.”
 
Total residential sales in November included 324 detached (down 3.9 per cent from November 2020), and 106 condominium units (up 27.7 per cent). Sales also included 30 semi-detached homes (down 25 per cent) and 136 townhouses (up 21.4 per cent).
 
In November, the average sale price for all residential properties in the Kitchener-Waterloo area was $821,969. This represents a 28.9 per cent increase over November 2020 and a 2 per cent decrease compared to October 2021.

The average price of a detached home was $990,447. This represents a 31 per cent increase from November 2020 and a decrease of 0.6 per cent compared to October 2021.

The average sale price for an apartment-style condominium was $494,548. This represents an increase of 23.5 per cent from November 2020 and an increase of 7.1 per cent compared to October 2021.

The average sale price for a townhouse was $700,476. This represents a 44.8 per cent increase from November 2020 and an increase of 0.9 per cent compared to October 2021.

The average sale price for a semi was $717,143. This represents an increase of 27.3 per cent compared to November 2020 and a decrease of 1.3 per cent compared to October 2021.
 
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 $825,000 in November. This represents a 34.1 per cent increase over November 2020 and a 2.6 per cent increase compared to October 2021.

The benchmark price for a detached home was $915,800. This represents a 35.8 per cent increase from November 2020 and 3.2 per cent increase compared to October 2021.

The benchmark price for an apartment-style condominium was $398,000. This represents a 16.7 per cent increase from November 2020 and a 2.1 per cent decrease compared to October 2021.

The benchmark price for a townhouse is $627,900. This represents a 45.5 per cent increase from November 2020 and a 4.0 per cent increase compared to October 2021.
 
“Lack of supply continues to be the refrain in November,” says Bell. “With inventory hitting an all time low it is a tough time to be house hunting right now.”
 
There were 605 new listings added to the MLS® System in KW and area last month, an increase of 3.2 per cent compared to November of last year, and a 14.6 per cent decrease compared to the previous ten-year average for November.
 
The total number of homes available for sale in active status at the end of November was 207, a decrease of 40.2 per cent compared to November of last year, and 80.7 per cent below the previous ten-year average of 1,071 listings for November.
 
The number of months of inventory reached an all time low of 0.3 in November. Inventory has settled at under 1 month for thirteen consecutive months. 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 November stayed at 10 days, compared to 14 days in November 2020 and a previous 5-year average of 24 days.
 
Bell notes that while the housing market typically slows down around the holiday season, she still expects to see a busier than normal December.

“There is growing anxiety out there among buyers caused by the fear of missing out against rumblings of interest rates eventually going up in the year ahead.”

IT’S TIME TO LIGHTEN UP K-W!

The joy of the holiday season is upon us which means it’s time to light things up!

It’s that magical time of year again and another one of K-W’s favourite traditions is back to help us get into the holiday spirit!

Bingeman’s has the largest drive-thru holiday light display in Southwestern Ontario and you have until Sunday, January 9th to enjoy it! 

Gift of Lights is a family-friendly, festive attraction that will definitely get you in the Christmas spirit! There are two illuminated tunnels and over 300 colourful light displays to enjoy as you wind through the 2.5 km sparkling path.

You can enjoy these dazzling displays from the comfort of your vehicle but if you prefer to walk through the display, there are a limited number of evenings that can be booked in advance.

Also back this year is another favourite tradition, the Wonders of Winter in Waterloo Park. There are over 100 colourful and fun displays lighting up the park until midnight on New Year’s Day. Ho Ho Hope to see you there!

MAKING A GRAND ENTRANCE

Instead of just stumbling into a cluttered mess, why not make a grand entrance!

Your foyer is the first impression people get when they enter your home so it’s important to properly showcase this severely underrated area, especially if you’re trying to sell your home.

Don’t worry though – transforming your foyer from a dumping ground into a grand entrance is easy! Here are a few ways to create an amazing first impression in an area that endures so much wear and tear:

Cut the Clutter
A chaotic-looking hallway will turn buyers off so remove any clothing that’s no longer needed. Organize hats and scarves in stylish baskets and stack footwear in an orderly fashion.

Add Some Style
Add a unique piece of furniture such as a bench for guests to sit on as they take off their shoes. A small table to catch keys works well for more compact spaces.

Lighten Up
Foyers are usually fairly dark so use a brighter bulb to cast more light. Painting the walls a light shade will give it a more open feel and a strategically placed mirror will create the illusion of additional space.

Freshen Up
Breathe some life into your gloomy hallway by adding a few plants or fresh flowers. If you’re selling your home, replace the cluttered mass of family photos that creep up the stairs with a few neutral pictures.

Transforming your dark and dreary foyer is important, even if you don’t plan on selling, as this space sets the tone for the rest of your home. If you walk into a dark cluttered mess, it won’t generate the positive feelings that help put a smile on your face 🙂

GIVE THE GIFT OF A KIVA LOAN

This year, give a gift that keeps on giving over and over again!

If you’re having trouble coming up with a unique gift for that special someone this holiday season, you may want to consider a Kiva gift card!
 
Kiva is a non-profit organization that has funded $1.6 billion in loans since 2005 to low-income families and entrepreneurs from around the world such as farmers, artisans, students and refugees.

It’s easy to purchase a Kiva gift card online and it’s not too late as they can be either printed or immediately sent to the recipient via email.

Once they receive their gift card, they can contribute to a variety of crowdfunded loans that fall under different categories. When the loan’s repaid, they can either re-lend the money to someone else or withdraw the funds.

Because it’s a loan and not a one-time donation, the impact can be felt multiple times so it’s truly the gift that keeps on giving!

The gift of a Kiva loan is a win-win scenario as it not only helps out the borrower but the lender walks away knowing they’ve made a real difference in someone’s life.