Average cost of a home in Kitchener-Waterloo jumps 9.3 per cent in 2019, realtors say

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.

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KWAR President Colleen Koehler believes prices will continue to rise in 2020.

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“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.“

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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.

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Despite that, with 5,925 homes getting new owners last year, Koehler still sees a strong marketplace.

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“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.