December 2016 topped off an unprecedented year in real estate in Waterloo Region as prices for homes along with numbers of homes sold reached new heights.
According to market statistics, “dollar volume of all residential real estate sold last year increased 30.9 percent to $2,578,176,468 compared with 2015”, and “a thousand more units than sold in 2015, amounting to an increase of 18.1 percent and setting a new record for total annual sales”.
November set another all-time high in market sales, with one month still to go in 2016. “Year-to-Date Sales to the end of November have now exceeded any previous end-of-year totals on record,” says James Craig, president of the KWAR. But greater sales numbers were not due to greater inventory. With a substantial shortage of homes, many properties are selling above list price, as more buyers compete for fewer homes. According to the report:
Craig says that he expects demand for home purchasing in 2017 will continue to be strong. “There is no smoking gun to explain the current market. Mortgage rates remain low, inducing more consumers to get into the market. We have an extremely attractive community, with a growing population and diverse economy bringing in new residents to the region. Home prices remain affordable when compared to the average GTA prices.”
“The challenge is inventory levels remain low, as homeowners are staying in their homes longer and some who might have otherwise moved up are choosing to avoid the hot market. What I hope to see is more balance returning to the market, because I sure don’t see the appetite for home ownership in Waterloo region letting up anytime soon.”
For more details on December 2016’s K-W Market Update that includes statistics from Wellesley, Wilmot and Woolwich Townships, click here.