'The market is overheated': Record number of Waterloo Region homes sold in March
KITCHENER -- Home sales in Waterloo Region continue to surge, reaching a new record of homes sold in March.
That’s according to the most recent report by the Kitchener-Waterloo Association of Realtors (KWAR), which found home sales increased by over 72 per cent compared to March 2020. There were 993 residential sales last month.
“This is the first time we’ve sold more than 900 homes in a single month,” said Nicole Pohl, President of KWAR in a news release.
Those sales included 593 detached homes, 124 condo units, 79 semi-detached homes, and 197 townhomes.
During that time, the average sale price for all residential properties in the Kitchener-Waterloo area was $765,393.
“On a year-over-year basis we continue to see huge price increases in the average price in March, however compared to February we are seeing some signs that perhaps prices may be starting to stabilize a bit,” said Pohl.
"I would say the market is overheated right now," said Jennifer Tsao, a senior analyst with the Canada Mortgage and Housing Corporation.
The CMHC recently assessed housing markets in Hamilton and Toronto and valued them as overheated and overvalued.
The average price of a detached home was $899,460 in March. That number represents a 32.3 per cent increase from March 2020, although a slight 1.4 per cent drop in comparison to February 2021.
In March 2015, KWAR listed the average price of a home at $347,722. That's risen to $765,393 in March 2021, an increase in 120.1 per cent.
The cost of a detached home in Kitchener-Waterloo rose by 133.8 per cent from March 2015 to March 2021. In 2015, the average detached home cost $384,635. Now, KWAR lists that price at $899,460.
Blake Bailey wants to buy his own home one day.
"Hoping that it has a little bit of a market crash so I am able to hopefully purchase a house very soon," the 20-year-old said.
"When we talk about overheating, there's quite a few factors to look at," Tsao said. "Prices being one of them and whether or not there's multiple bids being done on a home. These are things that we are currently seeing, particularly from January and February of this year."
Last month, the average cost of a detached home in Kitchener-Waterloo passed $900,000 for the first time.
Tsao said the high housing costs will likely continue through the duration of the pandemic.
Here's a look at changes in housing prices from March 2015 to March 2021, along with how prices and sales have changed in Kitchener-Waterloo over the past year.