Home prices continued to surge in the area in October as they reached record highs for the second straight month, according to the Kitchener Waterloo Association of Realtors.
The average cost of buying a home in Kitchener-Waterloo jumped to $841,764 in October, a 6.1 per cent rise from $792,599 in September.
In addition, the average cost of buying a detached home in the area is on the verge of reaching $1 million as it now stands at $997,654, a 3.5 per cent rise over a month earlier.
“With ongoing constraints on supply versus demand, home prices continued to accelerate in October,” KWAR president Nicole Pohl stated.
The realtors say 593 homes changed hands last month, which is 11.1 per cent less than a year earlier and also 16.5 per cent less than September, which is traditionally a busier month as the fall market opens.
“While not as red-hot as last year’s record-breaking October, it was still a higher-than-normal number of home sales for the month, and the second-highest October on record,” Pohl said.
“The number of listings coming on the market can scarcely keep up with the demand for homes in Waterloo region, and the continued price growth we see in October reflects this.”
KWAR says the rapidly-rising costs are preventing many from entering the housing market and that local realtors from across the country have been in talks over the past couple of weeks with MPs to discuss the situation.
“Affordability throughout Waterloo Region continues to be challenged, creating significant barriers especially for many people who are just trying to get their foot in the door of the housing market,” Pohl stated.
“We are urging all levels of government to work together to tackle the supply issue facing housing markets across the country and right here in Waterloo Region.”