Average detached home price passed $1M in Kitchener-Waterloo last month

The average price of a detached home in Kitchener-Waterloo passed $1 million in the month of December.

The monthly report from the Kitchener-Waterloo Association of Realtors (KWAR) said detached homes sold for an average of $1,021,353, a 34.7 per cent increase over December 2020 and a 3.4 per cent increase over November 2021.

The average price for all residential homes was $842,014, a 32.5 per cent increase over December 2020. Condos sold for an average of $500,352, townhouses had an average price of $717,475, and semi-detached homes sold for an average of $770,246.

Looking back on 2021 as a whole, KWAR said the average sale price in Kitchener-Waterloo was $770,596, representing a 25.8 per cent increase over 2020. A total of 7,581 sold in the area last year, a record-setting number representing an increase of 18.3 per cent over 2020.

“Home sales in 2021 have absolutely smashed last year’s record by more than 1,000 units,” said KWAR’s president, Megan Bell, in a news release. “While this is a good time to sell your home, it remains a tremendously difficult market for buyers. Affordability for all types of housing within our community continues to be a concern which we expect to continue throughout 2022.”

There were 344 residential sales in Kitchener-Waterloo last month, breaking down into 177 detached homes, 56 condos, 23 semi-detached homes and 88 townhouses.

In 2021, 4,272 detached homes, 1,127 condos, 578 semi-detached homes, and 1,602 townhouses were sold in Kitchener-Waterloo.

“Supply not keeping up with demand was a steady refrain in 2021, and unfortunately I expect that will continue to be the case in the year ahead,” Bell said. “We need all levels of government working together to bring more supply into the housing market.”

It took an average of 10 days to sell a home in 2021, down from 16 days in 2020 and a five-year average of 22 days.

“It’s almost like being on a game show or central reality television. The pace is very frantic,” said Emily Campbell, a home buyer in Waterloo.

Campbell said she’s been looking for a home to buy for less than a month. She said she looked at almost two dozens homes in Kitchener-Waterloo but said it is very competitive.

“The last house I offered on, there were 21 offers,” said Campbell.

Campbell had no problem selling her home. It sold in a few days for $300,000 over the asking price.

Local realtors said it has been challenging for their buyer clients since the pandemic.

“It might’ve been in the spring of 2021 when we’re actually able to get it for under asking with conditions,” said Shawn Ramautor with Royal LePage Wolle Realty, who is representing Campbell.

In a seller's market, buyers beware and be prepared for bidding wars, and going above and beyond the asking price.

“We are also expected to go in without any sort of conditions, no financing, no inspection, no insurance clause,” said Ramautor.

“We were just have no inventory and the region is one of the tightest markets in all Canada right now,” said Bell.

KWAR doesn't expect the price of detached homes to go down anytime soon but predicts it could maintain and stay the same towards the end of 2021.

“I think it’ll probably be closer to the second, third and fourth quarter. It really depends on what industry to do and the affordability for buyers,” said Bell.