If March was a rebalancing month, then April was a month of uncertainty, readjusting and a lot of confusion, apprehension unpredictability and resolve. Here are some of the things that just happened…
10, 7 & 3 weeks of market updates. A clear look at the rebalancing
In this video, I look at the past 10, 7 and 3 weeks of Kitchener-Waterloo real estate market updates to discover how Kitchener-Waterloo real estate market is trending.
What will happen to Canadian real estate in 2022?
Housing activity will remain strong through 2021 and well into 2022. Approximately 701,000 homes will likely get sold through Canadian MLS Systems this year, with double-digit sales growth likely to manifest in every province. The national average home price is projected to grow by 16.5% annually to reach $665,000. And while more modest, the predicted 614,000 sales in 2022 will prove no impediment to price growth. The national average is expected to see a 2.1% gain to reach $679,000 in 2022. The pandemic has changed the relationship that many people have with housing. COVID-19’s effects on the Canadian real estate market will be readily apparent in the years to come.
How’s the Kitchener-Waterloo Real Estate Market?
Lots of listings and sales.
Prices levelling off.
SP/LP coming down.
Canadian Real Estate Better Balanced Than A Few Months Ago
The market is still extremely tight, but a little pressure is starting to release.
The sales to new listings ratio (SNLR) fell to 72.63% in March, falling closer to balanced. Inventory is still tight compared to home sales, but it’s almost half the record high of 118.53% hit in December. It may not seem that way due to the headlines on home sales, but this is a much more relaxed market. Home sales are rising primarily due to pent-up and pulled-forward demand. The pent-up demand is due to restrictions on home sales pushed some buyers into later months. The pulled-forward demand breaks down into two segments. The first is people motivated to take advantage of record low mortgage rates, and accelerating their buy. The second is people that are being driven by FOMO, and feel they need to buy ASAP, before they’re priced out of the market forever.
What’s happening in Waterloo Region Rural Real Estate
There are currently 49 homes listed for sale with the KW Real Estate Board in the rural towns and townships. The average list price for homes listed in Rural Waterloo Region is currently $1,302,480 (up almost 17% over last month) The Median list price for homes currently listed for sale in Rural Waterloo Region is $899,900 (up 20% over last month). There were 104 homes sold last month in the rural towns and townships through the Kitchener-Waterloo Real Estate Board. The average list price for homes sold in Rural Waterloo Region last month was $726,523. The average sold price for homes sold in Rural Waterloo Region last month was $828,344 (15.67% over list price last month was $828,344 (15.67% over list price)
Kitchener average rents up monthly for both one-bedroom and two-bedroom units
Kitchener average monthly rent in March for a one-bedroom home was $1,504 and average monthly rent for a two-bedroom of $1,728. Average rents increased monthly in Kitchener for both a one-, and two-bedroom home, and average monthly rents were up year over year 17.5% for a one-bedroom.
Average rent down 8.5% in Canada year over year. Some signs point to rental market hitting bottom. The average asking rent for all Canadian properties listed on Rentals.ca in March was $1,685 per month, down $157 or 8.5% from $1,842 in March of last year.