While some real estate markets around the country have been in a slump, the same cannot be said for the Kitchener real estate market. Last November alone, 483 properties changed hands. And this trend doesn’t look like it’s going to slow down anytime soon. Experts are speculating that this could be due to the threat of further interest rate hikes due to governmental policies. Therefore, homebuyers want to get in the market while rates are still relatively low.
A large portion of these sales occurred in the condominium market. In fact, 152 condo units exchanged hands in the Kitchener real estate market in November 2018, reflecting a 52 percent increase from 2017. That’s a relatively large leap. Since there are so many houses currently being sold, it is projected that home prices will continue to rise.
A Desirable Location
Of course, this rise in home sales is likely because the Kitchener area is a highly desirable place for many Canadians to call home. It’s the largest city in the Waterloo region, and the trendy neighbourhoods, artistic community, and post-secondary institutions in the area are enticing more potential buyers to flock to the Kitchener real estate market. Since there are so many nearby towns and cities to travel to, the area boasts the benefits of both a larger city and a small town.
The average price of a home in the Kitchener real estate market rose to $477,526 in November, a significant increase from years past. If this trend continues, homebuyers in the area could see further hikes in prices. And with the threat of higher interest rates looming, buyers are likely to continue to take advantage of prices in the area now.
High Levels of Employment
Some areas of the country, such as Calgary, are having a hard time recovering from the recession. In these places, unemployment is at a high. However, that is not the case in Kitchener. One of the major reasons the Kitchener real estate market is doing so well is the fact that employment rates are very high in the area. Higher-income residents are driving more home sales, which is leading to a healthier market overall. This trend seems like it will continue, with more people landing well-paying jobs that will allow them to buy new houses.
In addition, more millennials are starting to look at buying their first houses in the Kitchener real estate market. As a greater number of these individuals reach financial freedom and start building families, they are going to want to invest in a solid housing market that will support them for years to come.
The threat of higher interest rates, as well as other uncertainties in the Kitchener real estate market, make the future of the area’s real estate not totally predictable. Experts tend to agree that many of these trends will continue into the future.