Spotlight on Kitchener/Waterloo Real Estate Market: January 2021 Bid Wars Return as Prices Soar
Yes, you read that right, bidding wars have returned.
“January 2023 was characterized by low sales, low inventories and few new offers. We are seeing demand outstripping supply and bidding wars are again the norm – at least for properties listed under $800,000, particularly freehold properties,” said Greig Turvey, Sales Representative, GoWylde Team/ReMax.
“33% of homes sold in January were sold at overpriced prices. I expect that number to increase dramatically in February as many of the older 2022 listings have sold and most of the new inventory is attracting multiple listings. The vast majority of properties listed under $800,000 have received multiple offers,” says the REALTOR®.
The average selling price for a property in the Kitchener/Waterloo area was $723,678. It was $891,798 for single-family homes, $610,004 for townhomes, and $493,232 for condos and apartments.
The average list-to-sales price ratio rose 1% to 99% — and that stat is likely to continue to rise. Inventory in months is currently 2.17.
Prices almost always rise from December to January as sales pick up again after the holidays. This year was certainly no exception. On average, homes sold in January were 4% higher than the previous month, but single-family homes were up 9%, which is significant.
What is causing this uptrend in the market? Turvey believes three factors play a role.
- Low inventory
The recent surge is definitely related to a small number of new offerings hitting the market. In fact, that’s the biggest factor, he says. - Lower interest rates
While the Bank of Canada raised interest rates by 25 basis points on Jan. 25, it also hinted that this will likely be the last rate hike. Lenders are now offering lower 5-year fixed rates. - Higher rents and investors
In the past year alone, rents have risen by over 20%. With prices stabilizing, it’s easy for investors to invest in properties with positive cash flows.
“If you are thinking of selling I would definitely recommend trying to capitalize on this competitive market as it will not last forever. As the news gets around and people start getting their homes ready for the spring market, it’s likely that we’ll see a big increase in supply. If you’re a buyer, there are still some great opportunities out there.”
Turvey says: “This is the perfect time to buy as your house will sell very quickly and you can buy and negotiate in a much slower market.”
And if you are looking for an apartment style condominium? They still have relatively low prices, lots of options, and lots of great deals.
Keep up to date with the latest market trends in Kitchener and Waterloo with real estate agents Brad Wylde and Greig Turvey.
Visit the GoWylde team or call 519-826-7109 for more information.
Source: kitchener.citynews.ca
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