And…it’s April already!
Here at the Deutschmann Team we are on our toes and moving quickly to stay on top of the hot Kitchener-Waterloo Real Estate market.
Homes are moving fast, especially in the $350,000 to $399,999 price range where sales have increased 78.2% from March 2015; the average overall sale price for March 2016 has risen 5.8% to $371,733. If we look only at single detached homes, the average price has increased 9.2% to $428,495 from the same time last year.
WOW! Do you know what this means? On average, owners of single detached homes in Kitchener-Waterloo have made about $40,000 (or $110 per day) of tax free money in the last year simply by owning a home!
This chart shows that the average selling price of a home in Kitchener-Waterloo has increased from just under $250,000 in 2007 to more than $350,000 in 2016. This is exciting and scary at the same time because we wonder what happens if this trend stops. However, sustained rising prices are supported in the following ways: Sellers want more money for their homes, Real Estate agents push for top dollar, government has a mandate of inflation, while immigration and increasing population cause more competition for resources. Sustained increases in housing prices even makes buyers feel more comfortable because they realize the purchase of a new home is a wise investment. Everything is on the side of support for the trend to continue. As they say – “The Trend is your Friend”.
Here is a chart of average home price in Toronto since 1995. Anyone waiting for this trend to break might be in for a long wait. Look at what happened in 2008/2009 when we all thought the world was going to end – there was a hiccup but the trend continued. This is indicative of what our KW trend looks like and looking forward I anticipate the trend will continue.