If you're looking to buy a new house you may find yourself shopping around in the Kitchener area. Officials with the city say building permits are at a three year high, which is a surprise because they expected the period between 2013 and 2015 to cool off.
“We have had 17 years of very high permit activity, and this year we thought there was going to be a slight correction in that, so this is a little bit of a surprise to us,” said Tim Benedict, who is the Manager of Buildings for the City of Kitchener.
At this time last year, the City of Kitchener had issued about 1100 building permits. Fast forward to July 2014, and they've issued 1400, which is 300 more than expected on top of an already busy season.
For the month of June alone, the City of Kitchener says they've received 105 permits to build single family detached homes. Compare that to Waterloo, where this year to date they have received 78.
John Brodrecht is thesales manager for Hawksview Homes, and says Kitchener is drawing the attention from builders and from buyers.
“In the last 12 months we have doubled sales from the year before, but it could be because of our niche market. It’s the second round home buyer’s type thing, anywhere from the $450,000’s to $700,000’s,” Brodrecht said.
City officials say it’s a combination of factors, including everything from low interest rates to available land to build on and intensify.
Another reason why this could be happening is a nearly $5000 increase in permit charges from the region to local builders that will go into effect by the end of this month.
And while these charges will be passed on the consumer, Benedict believes they will see similar increases next year.
“This is good news for the city and the region. It shows that we are still a very desirable place to live and work,” said Benedict.
