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WATERLOO REGION REAL ESTATE MARKET – MARCH 2020

Our local real estate market review March 2020

For the past 3-6 months our local real estate market data was very similar to the numbers we saw in late 2016/early 2017. Waterloo Region markets had historically low inventory for some time and buyer demand was increasing. With no signs of those factors changing our 2020 Waterloo Region real estate market was positioned to continue to be competitive and prices were increasing. Enter COVID-19 and our market has begun to shift. Below we will share key market stats on our local real estate market as well as our insight into how our markets are shifting and what it means for you.

Waterloo Region Real Estate Market Overview – March 2020

There were 577 total residential sales in March 2020 across all market segments. That represents a 13.1% increase in the number of sales from March 2019. Of those 577 sales 348 were detached homes, 161 were townhouse/semis and 68 were condo sales.

  • Average Sale Price was $583,752 UP 15.3% from March 2019
  • Average Days on Market was 15 Days, DOWN from 21 in March 2019
  • The Average Percentage of Listing Price Received was 106.2% UP from 101.4% in March 2019
  • Months Supply of Inventory was 1.1 DOWN from 1.6 in March 2019 

Waterloo Region Single Family Homes

Average Sale Price: $679,728 (UP 15.9% from March 2019)

Days on market: 14 Days (DOWN from 21 days in March 2019)

Months Supply – Inventory: 1.1 Months (DOWN from 1.7 in March 2019)

Waterloo Region Condos

Ask us to stay updated on pre-release specials or buyer incentives we have access to!

Average Sale Price:  $374,112 (UP from $328,258 in March 2019)

Average Days on Market: 38 Days (UP from 35 in March 2019)

Months of Inventory: 1.7 Months (DOWN from 2.7 in March 2019)

Waterloo Region
Townhouses & Semi-Detached

Check out the key stats on this market segment below! Want more information on this segment? Drop a comment or contact us here.

Semi -Detached average sale price was $481,562 UP from $420,611 in March 2019

The average days on market for towns was 12 days and 9 days for semis

Townhouse average sale price was $461,825 UP from $387,180 in March 2019 

There was just 0.7 months of inventory in March 2020

Realtor Notes

Waterloo Region’s real estate numbers for March 2020 tell us that the average sales prices are up, listings are selling quickly, and there is still very little inventory across all market segments. That being said, the effects that COVID-19 has had on our market isn’t accurately reflected in these numbers yet.

Taking a deeper look at March 2020 data we found that there was approximately 60% drop in showing activity in the last two weeks of March compared to the first two weeks. Furthermore there was approximately a 22% decrease in showings in March 2020 compared to February 2020, and about a 77% decrease in showings in the final week of March compared to the final week of February 2020. What these figures tell us is that showing activity is declining rapidly as the significance and severity of the health pandemic develops.

To summarize some the stats above and our experience with buyers and sellers this past month we can say that there was an influx of listings that hit the market but buyer demand has cooled. Listings are getting fewer showings but buyers that are viewing homes are motivated. We will share another short blog post this coming week discussing our view of the market and comment on the future of Waterloo Region Real Estate. For now, real estate business in NOT continuing as usual.

The local and provincial real estate boards are encouraging buyers, sellers, and realtors to postpone their real estate business if possible. As Realtors we are are able to provide services for clients that require a purchase or sale like digital video tours of properties for showings, group phone calls or video chats for client meetings and utilize digital signing applications for all paperwork. That means it is very possible to purchase or sell successfully but the way in which we must do business is different.

For Buyers:

If you are in a position that you must purchase a property we advise that you view video tours and be selective of the homes you view. Contact us to learn more about how we are helping clients safely find their new homes during these market conditions. We can advise on the proper health guidelines and ensure you have access to the proper tools to find and secure the right property.

For Sellers:

Sellers rushed to get their homes on the market before the COVID-19 situation worsened. Now, many people are delaying the sale of their property but the reality is each situation is different. We advise getting a preliminary market evaluation completed by phone to establish an initial evaluation and game plan for your property sale. For those that must sell please contact us for specific selling strategies to protect you and your home, but also get the proper exposure to sell your home for top dollar.

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Waterloo Region Real Estate Blog – August 2019

August 2019 Real Estate Review

Waterloo region real estate market provided little surprises in August 2019. Low inventory across all market segments continues to fuel competition at virtually every price point. That being said, average sale price for the waterloo region real estate markets slid for the third straight month from May highs. We speculate that this is a result of the lower inventory for freeholds and larger homes compared to condo sales that are typically in lower price points.

Waterloo Region Real Estate Key Market Stats

  • Average sale price across all property types in Waterloo region was $515,842 in August
  • All listings were on market for an average of 26 days
  • Overall market supply was 1.6 months

Single Family Homes

Below are keys stats for the single family property type as well as Condos and townhouses/semi-detached properties afterwards.

Average Sale Price: $589,071

Days on market: 19 Days

Months Supply – Inventory: 1.7 Months

The average sale price of single family homes in the Waterloo Region was just under $590,00, down from its peak of about $604,000 in May. The average days on market increased from 21 days in July to 24 in august. The months supply dropped to 1.7 months in August.

Condos

Waterloo condos continue to come to market as new developments continue to come to market. Overall there is a healthy demand for affordable, centrally located condos in the Waterloo Region real estate market.

Average Sale Price:  $315,000

Average Days on Market: 45 Days

Months of Inventory: 2.7 Months

Average sale price for condos in waterloo region slid almost $5,000 from July to August. The average days on market jumped from 29 days in July to 45 in August. This may be skewed at the time of writing as conditional and firms sales will continue to be processed in the first few days of each month. We will review this figure in the coming weeks. Finally, inventory numbers for condos in waterloo region dropped from 3.3 months, to 2.9 months in August.

Townhouses & Semi-Detached

Check out the key stats on this market segment below! Want more information on this segment? Drop a comment or contact us here.

Semi -Detached average sale price was $436,904

Townhouse average sale price was $421,378

The average days on market was approximately 22 days

There was just 1.0 months of inventory in August 2019

Realtor Notes

The end of July and August are traditionally slower months for sales in Waterloo Region. This held true with dropped in number of sales and inventory across most market segments. Look for inventory to bounce back up and buyer demand to slow down slightly in the coming months.

Stay connected with us on our socials for listings, market stats, professional insight and advice. You can also check out other helpful topics we cover on our real estate blog here.

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Waterloo Real Estate Market Review – July 2019

In July, the Waterloo real estate market experienced a second straight decline in inventory. Listings continue to sell in about three weeks on average and for approximately 100% of asking price. The Waterloo real estate markets continue to be competitive signalling values should appreciate.

Waterloo Region Real Estate Key Market Stats

  • Average sale price across all property types in Waterloo region was $516,481 in July 2019
  • All listings were on the market for an average of 22 days
  • Overall market supply was 1.8 months in July 2019

Wondering how July compared to past months? View our monthly blogs to see!

Single Family Homes

For single family homes the average sale price has increased by 6.3% from July 2018. The average days on market was 20 days, and the months supply remained at 2 months for the second straight month. 

  • Average Sale Price: $594,270
  • Days on market: 21 Days
  • Months Supply – Inventory: 2.0 Months

The Waterloo real estate market continues to experience very low inventory, especially in single family homes. Low inventory is fueling competition and price appreciation in this segment.

For example, months of inventory for single family homes priced between 200-450,000 is just 0.3 months, down from 0.5 months last year. That is a decrease of about 40%. For single family homes priced above $450,000 there is just 2.4 months of inventory. This is down from 2.8 months (14.3% drop) in the same month last year.

Condos

Our Waterloo region real estate market continues to provide opportunity in the Condo segment as redevelopment of the city core’s progress. New developments from local and national organization in uptown Waterloo and downtown Kitchener continue to be the focus for local residence and investors.

  • Average Sale Price: $320,250 
  • Average Days on Market: 29
  • Months of Inventory: 3.3 Months

Waterloo Condos increased in average sale price by almost $15,000 from June to July. Average days on market increased slightly from 19 to 21. Months of inventory increased from 2.9 in June to 3.3 in July.

Townhouses & Semi-Detached

  • Semi -Detached average sale price was $436,904
  • Townhouse average sale price was $421,378
  • The average days on market was 21 days in June for this segment
  • 1.0 months of inventory in July 2019 down from 1.2 in June

Developers and builders just can’t bring new units to market quick enough in this segment. Buyers have been hungry for affordable freehold options which townhouses and semi-detached properties have traditionally filled. What we have found, especially over the past few years, is that the price gap between smaller detached homes and this segment has continued to shrink.

We have speculated that Investor demand and a shift in buyer trend from the resale market to pre-construction has also fueled aggressive price growth in towns and semis. Check Buzz Buzz for pre-construction and upcoming developments in Waterloo Region and surrounding areas.

Realtor Notes – Buyers be ready!

Buyers, we feel your pain. There are few options out there and anything good is sold very quickly and likely above asking. We work with buyers every day and we found that education, qualification, and preparation are the best way to find great deals in any market. 

Educate yourself on the buying process and to better understand the market conditions. Qualify yourself with a mortgage pre-approval, have your deposit ready, and get comfortable with the types of offers that are going to win you the perfect home when you see it! Finally prepare yourself to actively search with the right tools. Buyers, prepare to active search and make sure you are using the best tools. Get connected on a realtor quality property search! Review any options as soon as they come to market and be prepared to search. This will help you narrow your search so you can confidently offer on the next property that matches exactly what you are looking for.

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MLS Kitchener, Waterloo, Cambridge & Guelph – January 2019 Real Estate Market Review

Now that the first month of 2019 is in the books we want to review the key MLS stats for Kitchener, Waterloo, Cambridge and Guelph real estate markets. For our monthly real estate market reviews this year we will be covering the four major markets in The Region of Waterloo and Wellington county.

Below we share the average sale price, average days on market, and months of inventory for January 2019. We review both the freehold and condo markets in these cities and compare to the last 12 months. Reviewing the MLS data on these three key real estate market stats will help to understand the speed and direction the freehold and condo markets are heading in our major market centers.

Freehold Market – MLS January 2019

The average sale price in January 2019 was $525,653 up from $499,918 in January 2018.

The Average days to sell for freehold properties was 28 days in January 2018 and just 24 days in January 2019.

MLS data on freehold listings shows that we sit at exactly two and a half months of inventory as of January 31, 2019. That is slightly up from just over two months of inventory for January 2018. This tells us that the freehold market is still a strong sellers market.

Months of Inventory – Freeholds in Kitchener Waterloo Cambridge & Guelph January 2019

Condo Market – MLS January 2019

The average price of condos increased to $350,522 in January 2019 compare to $322,063 in January 2018.

Average days to sell increased from 29 days in January 2018 to 33 days in January 2019.

The MLS data shows that the months of inventory has come down from almost three and a half months in January of 2018 to just under three months now. This means that the condo market is still in a sellers market.


Months of Inventory – Condos in Kitchener Waterloo Cambridge & Guelph January 2019

Realtor Commentary – Still A Sellers Market

In review of MLS data this past month we see that there is still a shortage of listings and properties are still selling quickly. One key point is that condos have more inventory and are taking more days to sell on average then freehold properties are. This is likely due to the large influx of condo developments in the Region of Waterloo and Wellington County.

The average prices for freeholds did not change dramatically in 2018. That compared to the the average price of condos that increased by over 10%. The most likely answer to the that is the affordability of such properties. With more buyers getting priced out of the freehold market it wouldn’t be surprising if condos experienced a similar price appreciation in 2019.

In summary the freehold MLS data shows us that these listings are selling quicker and for more money than condo properties. Both markets are still experiencing historically low levels of inventory meaning both are still considered sellers markets.

For more content on buying and selling over the winter months check out our last blog post. Have questions or wanted to see a specific topic covered in our blog? Leave us a comment below or contact us – We would love to connect!

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#1 Problem First Time Home Buyers Have

The #1 Problem First Time Home Buyers Have

Proper education is the number one problem we consistently see with first time home buyers. Real estate is a hot topic in mainstream media. Every homeowner voices their personal opinions too, making it more important than ever to properly educate yourself.

Understanding topics like how the real estate industry works, the current state of the market, and the entire home buying process from A-Z will pay dividends for your first, and largest purchase to date. We rely on statistics, experience, as well as proven system and models to educate and prepare our clients for their first purchase.

 

How The Real Estate Industry Works

In Ontario you have regional real estate boards, brokerages,  and salespeople (aka realtors). Real estate boards connect brokerages and their representatives to data and systems to facilitate the purchase and selling of real estate in their region. Brokerages provide the necessary tools for realtors to run their business. Each brokerage offers different things to their agents like marketing, training, business philosophies etc.

Realtors are the individuals that work directly with clients like first time buyers. Each agent runs their business individually as they are considered independent contractors working under their brokerage’s banner. If they are working with someone to help them purchase a home they are commonly referred to as a “buyer’s agent”. It does not cost anything to work with a buyer’s agent as they are compensated from the seller of the property only when their client closes on their purchase.

The Home Buying Process

The home buying process is different for everyone but typically goes something like this:

  1. Know how the real estate industry works – Hire a realtor or do it yourself
  2. Financing – Consult a mortgage broker (any good realtor has a good mortgage broker)
  3. Understand your realistic options – Is their options in my budget that fit my criteria?
  4. Know your market – Understand if it is a buyers, sellers, or balanced market and what that means
  5. Utilize search tools to actively search for new properties
  6. View listings often and critically – Important to see options to compare
  7. Negotiate the right deal – Consider things like price, inclusions, conditions, closing dates
  8. Closing – Hire the right lawyer!
  9. Ownership – Utility billing information, property maintenance, learn how to improve the value of your home, stay updated on property values etc.

Current State of The Real Estate Market

First time home buyers need to understand that the market can’t be controlled by any one person. The best thing first time buyers is to learn exactly what types of properties fit their budget and criteria in the current market. From there, identify what the market is like for those specific types of properties. Buyers can then identify how competitive that market is and formulate the right strategy to get get the right deal. Buyers that are active and engaged in the home buying process are rewarded.

Find monthly real estate stats and commentary on our blog.

Realtor Notes

We recommend asking questions, a lot of them! First time home buyers need a proper education and the right tools now more than ever. Furthermore first time home buyers that take the time to create and follow a plan experience less stress. Remember, you’re buying your first home so if you’re well educated be confident and have fun! You’re only a first time home buyer once.

Drop us a comment if you have questions on this blog post or make a request. Get connected and ask us your questions here!

 

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Waterloo Region Real Estate Market Update – August 2018

Real Estate Inventory, Sales Volume & Prices

August 2018 is in the books, so where are our real estate markets at? In our latest blog post we are taking a look into inventory numbers, sales volume, and price trends. Our goal is to keep you on the forefront of our real estate markets. By monitoring key stats and indicators we will determine where our markets are at now, and where they are heading.

MLS Listings Monthly Stats – Waterloo Region August 2018

Below is a standard “monthly stats” chart for the past 12 months. We monitor this chart on a month-by-month basis to get clarity on the direction and speed in which our markets our heading. We can see that the median days to sell increased from 13 to 16 from July to August this year. Looking at the blue line we can see that prices remained similar over the past 4 months with an upwards trend in the first few days of September 2018. This chart is a great starting point to see how long properties are typically on the market before they sell firm and if the prices homes are selling for is changing.

 

Competition in Waterloo Region Real Estate

For the residents of Waterloo Region the real estate markets over past two years has been a very intense experience. Properties selling in multiples, in a few days or even just a few hours like last spring is something our markets have not seen for many years. This competitive landscape has a lot of homeowners opting to stay at their current home to avoid the stress and worry of competing. When monitoring competition, especially for those considering buying and selling in a competitive market, list-to-sale price ratio is a great tool!

The chart below shows the ratio of the listing price to the price a property actually sold for. Note that this is an average of all listings in the Waterloo Region over the last 12 months. Ever property, situation and seller is different and there are different strategies for listing and selling property. Overall, if the average listing to sale price ratio is above 100%, we can assume that there is very strong competition. For reference, any List/Sale price ratio above 99% is historically strong. For additional context, review the blog post from June 2018 here we explain this key market statistic relating to Spring 2017.

Inventory & Sales – August 2018

Below is a chart displaying the number of listings sold and months of inventory in for the past 5 years. In August 2018 there were 671 Listings sold. As of August 31st Waterloo Region had just under two months of inventory. Months of inventory measure how long it would take for any market to run out of available properties if no new listings came to market. To put our current inventory levels into perspective, anything between 0-4 months is considered a “seller’s market”. Inventory levels between 4-6 months is a “balanced market”, and 6 months+ is a “buyer’s market”.

Looking back we see that we have not had 4+ months of inventory since Spring/Summer 2014.. yikes. We also see seasonal trends in our marketplace. Blue peaks in Winter and Summer months while green drops. This shows that we have more inventory available in off season months and fewer sales being made.

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Real Estate Markets – Week Ending April 29th, 2018

Spring Weather Brings Inventory to Local Real Estate Markets

The newest installment of our weekly real estate markets update shows an uptick in new MLS listings! After weathering a Spring ice storm just two weeks ago we see that more houses for sale in Cambridge, Waterloo, Kitchener and Guelph have come to market. For a market hungry for more inventory buyers welcome any new listings.

Are you considering making a move? Check out our buying smart series for buyer tips: https://primepropertieson.com/real-estate/buying-smart-series-march-2018/ . Selling or wants some tips? Peak our Facebook page where we are posting great content reviewing our Spring Seller Series: https://www.facebook.com/pg/primepropertieson/posts!

Waterloo & Wellington Region Real Estate Markets – MLS Listings Stats Breakdown

New Listings: 411

Sold Pending: 300

Sold Closed: 200

Cancelled & Expired: 95

Active Conditionally Sold & Not Showing: 138

Price Increase: 13

Price Decrease: 90

Back on Market: 26

Sunshine Brings Few More Listings To Real Estate Markets

For the week ending Sunday April 29th, 2018 our MLS Listings stats show an overall increase in volume. The Waterloo and Wellington region real estate markets had 411 New Listings, 26 more than the previous week. In addition our real estate market had 300 Sold Pending listings, 21 fewer than the week before. Conditionally sold listings for the past week totalled 138 compared to 142 the previous seven days. The spread between sold pending listings and new listings grew this past week. This means slightly more inventory for buyers!

To summarize the other stats our real estate market had 200 listings sold closed as well as 95 expired and cancelled listings. There were 103 listings with price changes compared to 85 the previous week.

Realtor’s Notes

The real estate market stats for the past seven days are in line with seasonal expectations. It is nice to see more inventory but our market has yet to receive a significant increase in available listings. We will remain in a seller’s market until we get more inventory or buyer demand cools significantly. Overall a fairly predictable week in the Waterloo and Wellington region real estate markets.

 

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MLS Listings Stats Week Ending April 22nd, 2018

Sellers’ Market Continues to Roll!

MLS Listings stats from Waterloo and Wellington region reveal little surprises for the week ending April 22nd, 2018. Marginal increases to new listings and sold pending listings are in line with seasonal trends. Now that the sun is out, and the snow is gone until next winter (hopefully) we can expect to see a steady increase of new listings coming to market over the next month or two. With slight increases in new listings, we can expect to see comparable increases to sold pending and conditionally sold listings. THis is because there are a comparable number of buyers to sellers currently active in our markets. If we continue to see comparable increases to sold and new listings we can expect our sellers market to remain for the time being.

Waterloo & Wellington Region Real Estate – MLS Listings Stats Breakdown

New Listings: 385

Sold Pending: 321

Sold Closed: 158

Cancelled & Expired: 70

Active Conditionally Sold & Not Showing: 142

Price Increase: 12

Price Decrease: 73

Back on Market: 29

Another Spring, Another Sellers’ Market

After braving the spring snow storm just one week ago our real estate markets experienced a slight increase in overall volume. MLS statistics showed 385 new listings this past week compared to 348 new listings the previous week, an increase of 40. This past week out markets saw 321 sold pending listings compared to 308 the previous week. These marginal increases to both key metrics are in line with seasonal trends. As well, their increases are comparable to each other meaning we are still in a sellers’ market. This is remain the case until we see a significant increase to new listings compared to sold pending and conditionally sold listings, leaving more inventory for buyers.

In review of other numbers there was a 50% increase in sold closed listings compared to the previous week. Price adjusted, cancelled and back on market listings were all fairly comparable to the previous week’s figures.

Realtor’s Notes

Overall the MLS listings stats for Waterloo, Kitchener, Cambridge, Guelph and the surrounding cities are showing that we are still in a fairly strong sellers’ market. This trend is expected to continue as inventory remains low and mortgage financing remains historically inexpensive. Inventory remains low as the development process remains slow and construction costs remain high. As for mortgage financing, we are expected to see interest rates increase this year, at least once. This will likely squeeze those that are on the fringe out of the market. Increases to interest rates will be marginal and are not expected to push a significant number of buyers completely out of the market.

For more commentary on real estate markets and how they are changing join us on Facebook www.facebook.com/primepropertieson/. Want more details, to share your opinion or talk real estate? Drop us a comment or get in touch via our contact page!

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MLS Listings Stats Week Ending April 15th, 2017

MLS Kitchener, Waterloo, Cambridge & Guelph Listings Stats Update

Real Estate stats for the week ending April 15 for the Waterloo & Wellington region show our markets are following seasonal trends. Our markets have seen more new listings and sold pending transactions then previous months. This is primarily due to weather and seasonal trends. When compared to the Spring markets over the past few years we are experiencing similar numbers of new listings in our local markets. That being said, we are still in a seller’s market with inventory in our markets remaining fairly low.

Waterloo & Wellington Region Real Estate – MLS Listings Stats Breakdown

New Listings: 348

Sold Pending: 308

Sold Closed: 103

Cancelled & Expired: 85

Active Conditionally Sold & Not Showing: 158

Price Increase: 10

Price Decrease: 72

Back on Market: 20

Spring Snow Storms Temporarily Pause New Listings Coming To Market

Southern Ontario was hit by a nasty snow and ice storm this past weekend likely putting some new listings on hold. Weather is always a significant factor to consider when analyzing market stats. The poor weather likely the main cause for almost 100 fewer new listings coming to market this week compared to last week.

We saw 348 new listings coming to market in the last 7 days compared to the 455 new listings the week prior. That is a difference of just over 100 properties. That being said, we are still comparable to the previous spring in terms of available inventory. In the past week our market had 308 sold pending compared to 256 the previous 7 days. It is important to note the “net new listings” in our market. We saw 348 new listings and 308 sold pending listings leaving only 40 net new listings. This compared to the previous week which saw 199 net new listings. Low levels of net new listings are a strong indicator that there are a comparable number of buyers to sellers in our markets. This signals we will remain in a strong seller’s market for the foreseeable future.

Additional points to note include price changes, sold closed, and conditionally sold numbers. Waterloo and Wellington real estate markets had 72 listings that price decreased and 10 listings that price increased. These numbers remain low and indicating that most listings are selling without pricing changes. There were 158 conditionally sold properties this week and 154 the week before. Finally, our markets saw a fair decrease in sold close properties this week compared to last week.

Overall, we are not seeing any major surprises in our market’s underlying stats. We can expect the number of new listings to fluctuate between 300-400 new listings on a week-to-week basis for the next few months. If that does happen, and we continue to see comparable numbers of sold pending listings, the real estate markets in Waterloo and Wellington region will continue to be strong seller’s markets.

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Waterloo & Wellington Region Real Estate Statistics – March 4th, 2018

Market Statistics Week Ending March 4th, 2018

Our markets saw 71 more listings hit the board in the last seven days then the previous week and only 2 more sold pending (203 sold pending in last 7 days). There was a large increase in sold closed listings as buyers that squeezed in a deal before 2018 will be closing around this time. In summary, we are seeing slightly more new listings come up as we approach the spring and a lot more closings stemming from buyers in December 2017.

Waterloo & Wellington Region Real Estate – Listings Breakdown

New Listings: 332

Sold Pending: 203

Sold Closed: 278

Cancelled & Expired: 94

Active Conditionally Sold & Not Showing: 117

Price Increase: 6

Price Decrease: 41

Back on Market: 29

 

Although we see a nice bump in available listings you can bet there are more active buyers in our market as well. As the weather becomes warmer so will buyer activity. We are still in a strong sellers market until we more inventory consistently in Waterloo and Wellington regions. Until next week!