In the last 365 days there were 6949 reported closed residential sales through the MLS for Waterloo Region. The luxury home market in Waterloo Region – homes valued over $1,000,000 – saw 123 closed deals in that same time. The Luxury market in the Region is a niche market: representing just 1.75% of the entire residential market in the Region.
The Luxury market averages about 10 home sales per month.
In the last year:
61% of those sales fell between $1,000,000 and $1,250,000;
26% fell between $1,250,000 and $1,500,000;
13% fell above $1,500,000.
Below is the current state of the Luxury Real Estate market in Waterloo Region.
Given the low volume of sales in the region it is difficult to accurately forecast days on market for a particular home. Often times we find a Buyer that has been waiting for a particular home or area to become available and a sale can result very quickly. Other times we find that a buyer for a property is not currently active and patience is necessary to allow time for a Buyer to enter the market for a particular home. Luxury properties rely on a small demographic of qualified Buyers so marketing is essential to ensuring a home is in front of every active or soon-to-be active Buyer. The marketing has to be tailored and suitable given the price point and has to consider that a Luxury Buyer is educated in Real Estate and has an eye for detail. There is no Compromise.
As lower priced homes increase in value and as land and new construction become more expensive, Luxury homes in the Region are increasingly a great value. I anticipate that the Luxury home market in the Region will gain strength in 2020 as some of the macro economic fears subside and we see continued employment strength and consumer spending. Company growth and expansion in the Region along with local Company start-ups and migration of companies to the region will grow the number of Buyers in the Luxury Real Estate market.
I think another trend that will gain traction will be infill in desirable areas. Older or dated homes on desirable land will become targets for Buyers and developers. These homes will typically be properties that hold average prices down in a neighbourhood. When you remove the lowest price in an average, replace that home with something new putting at the top of the price range in an area, the average price increases rapidly and pulls the value of all homes in the area up.
A Real Estate agent with exceptional marketing knowledge and strategies is essential when navigating the niche that is Luxury Real Estate in the Waterloo Region.