The average sale price of a home was up nearly 10 per cent in 2019, according to the Kitchener-Waterloo Association of Realtors (KWAR).
It says that the average price of a home last year was $527,718, which is a 9.3 per cent increase from 2018.
The rise in prices was felt in all residential markets as detached homes were up 7.1 per cent year over year ($614,743) while condos (an increase of 9.6 per cent to $332,409), townhomes (up 10 per cent to $409,979) and semis (up 11 per cent to $439,844) also saw dramatic increases as well.
KWAR President Colleen Koehler believes prices will continue to rise in 2020.
“With interest rates expected to stay low in the year ahead combined with Waterloo Region’s ongoing growth, I expect 2020 will see more price gains alongside a steady increase in sales,” she said in a statement.
Koehler says part of the reason there has been such a drastic increase has been limited supply of available homes.
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“In 2019, the lack of supply continued to be a hurdle for anyone who was trying to buy their first home, move-up from their current residence, or downsize,” she said. “This ongoing state of the market caused further escalation of home prices in 2019.“
Historically, the Kitchener-Waterloo market has had 3-4 months supply according to KWAR but 2019 ended with just 0.7 per cent.
With a minimal number of houses available, it should come as no surprise that overall sales figures were down 2.3 per cent in comparison to the five-year average.
Despite that, with 5,925 homes getting new owners last year, Koehler still sees a strong marketplace.
“Overall, it was a steadfast pace of home sales in 2019,”she said. “When annual home sales in Kitchener-Waterloo hit near 6,000 transactions, I consider it to be a strong real estate market.”
Overall, $3.1 billion worth of homes were sold in Kitchener-Waterloo in 2019, an increase o 10.9 per cent from a year earlier.