Kitchener-Waterloo Real Estate Market January 2022

The average price of a detached home reaches million-dollar milestone in December.

The 7,581 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in 2021 represent an increase of 18.3 per cent compared to last year’s record-setting number of sales that ended the year 2020.
 
On a monthly basis, there were 344 residential homes sold last month, a decrease of 1.7 percent compared to the same month last year.
 
“Home sales in 2021 have absolutely smashed last year’s record by more than 1,000 units,” says KWAR’s president, Megan Bell.

“While this is a good time to sell your home, it remains a tremendously difficult market for buyers. Affordability for all types of housing within our community continues to be a concern which we expect to continue throughout 2022.”
 
Total residential sales in December included 177 detached (down 12.4 per cent from December 2020), and 56 condominium units (down 11.1 per cent). Sales also included 23 semi-detached homes (up 9.5 per cent) and 88 townhouses (up 37.5 per cent).
 
For 2021, total residential sales included 4,272 detached (up 10.8 per cent), and 1,127 condominium units (up 43.4 per cent). Sales also included 578 semi-detached homes (up 31.1 per cent) and 1,602 townhouses (up 20.9 per cent).
 
In December, the average sale price for all residential properties in the Kitchener-Waterloo area was $842,014. This represents a 32.5 per cent increase over December 2020 and a 2.5 per cent increase compared to November 2021.

The average price of a detached home was $1,021,353. This represents a 34.7 per cent increase from December 2020 and an increase of 3.4 per cent compared to November 2021.

The average sale price for an apartment-style condominium was $500,352. This represents an increase of 30.6 per cent from December 2020 and an increase of 1.0 per cent compared to November 2021.

The average sale price for a townhouse was $717,475. This represents a 39.4 per cent increase from December 2020 and an increase of 2.1 per cent compared to November 2021.

The average sale price for a semi was $770,246. This represents an increase of 33.5 per cent compared to December 2020 and an increase 7.3 per cent compared to November 2021.
 
On a year-to-date basis, the average sale price for all residential properties in the Kitchener-Waterloo area increased 25.8 per cent to $770,596 compared to 2020.

The year-to-date average price of a detached home was $920,726. This represents a 28.0 per cent increase compared to 2020.

The year-to-date average sale price for an apartment-style condominium was $448,208. This represents an increase of 17.3 compared to 2020

The year-to-date average sale price for a townhouse was $632,875. This represents an increase of 34.9 per cent compared to 2020.

The year-to-date average sale price for a semi was $673,543. This represents an increase of 29.4 per cent compared to 2020.
 
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 $851,700 in December. This represents a 32.1 per cent increase over December 2020 and a 3.2 per cent increase compared to November 2021.

The benchmark price for a detached home was $945,600. This represents a 33.5 per cent increase from December 2020 and 3.3 per cent increase compared to November 2021.

The benchmark price for an apartment-style condominium was $412,700. This represents a 21.1 per cent increase from December 2020 and a 3.7 per cent increase compared to November 2021.

The benchmark price for a townhouse is $647,000. This represents a 40.0 per cent increase from December 2020 and a 3.0 per cent increase compared to November 2021.
 
There were 291 new listings added to the MLS® System in KW and area last month, an increase of 1.7 per cent compared to December of last year, and a 14.6 per cent increase compared to the previous ten-year average for December.
 
On a year-to-date basis, there were 9,040 new listings added to the MLS® System in KW and area in 2021, an increase of 11.5 per cent compared to 2020, and a 3.8 per cent increase compared to the previous ten-year annual average.
 
The total number of homes available for sale in active status at the end of December was 104, a decrease of 45.3 per cent compared to December of last year, and 85.7 per cent below the previous ten-year average of 727 listings for December.
 
The number of months of inventory touched an all time low of 0.2 in December. Inventory has settled at under 1 month for fourteen 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.
 
“Supply not keeping up with demand was a steady refrain in 2021, and unfortunately I expect that will continue to be the case in the year ahead,” says Bell. “We need all levels of government working together to bring more supply into the housing market.”
 
The average number of days to sell in December stayed at 10 days, compared to 16 days in December 2020 and a previous 5-year average of 28 days. The average days to sell in 2021 was 10 days, compared to 16 days in 2020 and a previous 5-year average of 22 days.

GOAL SETTING STRATEGIES

Whether your goal is to buy a home or give up a bad habit, it’s important to track your progress.

I’m a huge believer in lists, whether it’s going to the grocery store or packing for a trip. The best thing I love about lists though is the satisfaction of crossing things off!

Studies have shown that a surge of dopamine is released each time an item is crossed off a to-do list which then fuels us to tackle other tasks. It’s basically a snowball effect that helps us get things done.

Listing and tracking your goals is the best way to hold yourself accountable so to make things easy, here’s a downloadable goal planner and to-do list to help you easily chart out the days, weeks and months ahead.

Goals are often financially related, such as saving up for a downpayment to buy a home, but there’s more to life than money so it’s important to also set goals for the following areas:

• family (ie. spend more time with family)
• physical (ie. work out on a regular basis)
• spiritual (ie. volunteer more often)
• social (ie. join a networking club)
• mental (ie. learn a new language)

Once you have a general idea of what your goals are, use the following guidelines to fine-tune them:

Step Up
Specify the steps you’ll need to take in order to achieve each goal and then break down large goals into achievable,”bite-size” pieces.

Write On
It’s important to write your goals down and place them by your computer, bathroom mirror, car’s dashboard, etc.

Seeing Is Believing
Take time each day to close your eyes and visualize yourself achieving your goals and enjoying the rewards that follow.

Download Your Goal Planner

Goal setting is like therapy as it provides us with a focused direction and a sense of purpose. Your enthusiasm will increase as you start to achieve your goals which, in turn, boosts your self-esteem.

Planning out your goals helps to reduce the stress that comes from feeling powerless and out of control. If you make it your goal right now to take control of your future, 2022 may just be your best year yet!

TAKE IT TO THE BANK!

The demand for food donations in the K-W area will be greater than ever this year.

During the holidays, most people are in a very giving mood but when the new year rolls around, donations usually slow down to a crawl.

Local charities, such as food banks, have struggled to keep up with a strong demand that has continued to increase since the beginning of the pandemic.

To make matters worse, collecting food donations has been a real challenge since their usual fundraising events had to be postponed.

On top of that, food prices are expected to rise by up to 7% in 2022 according to Canada’s Food Price Report which means that even more people will have to rely on food banks this year.

There are so many people in K-W who struggle to afford nutritious meals during these difficult times which is why The Food Bank of Waterloo Region is in desperate need of non-perishable food donations along with diapers, toiletries and cleaning supplies.

In addition to food and toiletries, financial donations are especially important as they offer the flexibility to buy fresh food or to load up on items that are in short supply.

Thanks so much to the amazing people who continue to volunteer their time at the food bank. Your work is truly invaluable!

AN APPY LIFESTYLE

The right app can help kick-start new habits that will change your life!

If you’re looking to make some changes this year, your smartphone may hold the answers. Here are a few apps that are worth a look:
 
Duolingo
If learning a new language is on your to-do list for 2022, the Duolingo app is an absolute must!
 
Happify
This app is designed to help you overcome negative thoughts by offering a series of games that train your brain and build skills to help increase your happiness.
 
Done
The Done app is an intuitive and enjoyable way to help you manage your time and focus on your tasks. It displays monthly progress snapshots and also highlights your success streaks to keep you motivated.