October 2020 Kitchener-Waterloo Real Estate Report
Another record-breaking month: October was the 4th month in a row with a record number of homes sold. There were 783 new listings added to MLS representing a 16% increase over October last year, while there were 691 homes sold in October; the highest number of sales in October ever – representing a 28% increase over October 2019. Here is the breakdown:
417 Single detached homes: UP 25.6%
94 Condominiums: UP 34%
134 Townhomes: UP 26.4%
46 Semi-detached homes: UP 48.3%
The average sale price of all residential homes sold in October came in at $635,301. That is a huge increase of 19.4% over October 2019. Here is a breakdown by home type:
Single detached home average price: $742,596 UP 21.7%
Apartment condo average price: $395,627 UP 14.8%
Townhouse average price: $499,641 UP 15.6%
Semi-detached average price: $539,434 UP 16.6%
Home sales and prices continue to soar in the Kitchener-Waterloo area. Homes are on the market for an average of 13 days and we have just one month’s supply of home inventory. The market continues to be very tight with no signs that the trend will reverse any time soon. There is movement from higher density living arrangements to more space. Movement to properties that can accommodate increased time at home. Migration to KW from other parts of Ontario, Canada and the World. Interest rates are very accommodating at under 2% and investors with few alternatives are buying Real Estate. Home owner’s are also able to take advantage of the huge equity increases they’ve seen over the last 4 years and are able to tap that equity to buy a larger more accommodating home or to purchase investment properties.
The macro view is also trending in a positive direction. The situation in the US seems to be more clear and calm where Tweets will slow, the trade wars will ease, and a divided Government will lead to gridlock on increasing taxes and regulation that could have hurt Investors and Companies – otherwise put: the US economy won’t have much in its way.
And now there is greater hope of a vaccine. This is also positive for markets, employment, real estate, and the economy.
With a vaccine, employment coming back, increasing consumer confidence, low interest rates, trillions and trillions of dollars in new liquidity in the world economy, and human persistence (greed), we are on a fast track to a world where you want to own assets, cash is trash, and credit is the answer to all of your problems. So, let’s borrow some money and buy some houses!!!