The 2020 edition of our Kitchener-Waterloo Single Detached Home Report will examine:
- Number of New Listings
- Number of Sales
- Average & Median Sale Price
- Days on Market
- List Price to Sale Price Ratio
- Neighbourhood Specific Results
In 2020, the Kitchener-Waterloo single detached residential market was not excluded from the bounty of residential sales activity across Southern Ontario.
According to the sales reported by the Kitchener-Waterloo Association of REALTORS (KWAR), the average price of a single detached home in 2020 was $693,175, which is a year-over-year increase of 16.9%. There was a total of 3,652 sales in 2020, an increase of 5.9% over 2019.
A large number of neighbourhoods in Kitchener Waterloo experienced a surge of sales activity in 2020. One example of this is Lexington / Lincoln Village, which increased total sales 54.7% from 106 in 2019 to 164 in 2020.
(This report focuses exclusively on single detached homes that sold in Kitchener-Waterloo).
Number of Sales
- There were a total of 3,652 single detached home sales in Kitchener-Waterloo, a 5.9% increase from 2019’s 3,449 sales.
- Despite having a dramatic reduction in sales during the beginning of the pandemic, total sales in 2020 climbed above 2019 during the month of June and remained higher for the remainder of the year.
Average Sale Price
- The annual average sale price increased by a staggering 16.9% from $593,107 in 2019 to $693,175 in 2020.
- 2020 finished the year with its highest monthly average sale price to date of $734,186.
Median Sale Price
- Similar to the average sale price, 2020 outperformed 2019 in every single month.
- The year closed off with a 13.7% increase in December prices, rising from $599,850 to an all time high of $682,101 year-over-year.
List Price to Sell Price Ratio
- The lack of inventory in Kitchener-Waterloo created multiple offer situations in the majority of all sales.
- Almost all homes in the city sold significantly over asking price in 2020. This ratio increased greatly throughout the fourth quarter of the year.
- December 2020 concluded with the average single detached home selling for 111.6% of asking price.
Days to Sell (Median)
- Homes in Kitchener-Waterloo sold in an all-time low number of days on market.
- In the last 5 months of 2020, the median number of days on market was just 7.
- It appears this is the lowest we will see this number go, as it has become the “new normal” in Kitchener-Waterloo for sellers to list their home and schedule offers to be presented one week later.
Number of New Listings (Inventory)
- In total, more homes were listed in 2019 (4,964 new listings) than in 2020 (4,567 new listings).
- This is due to the large decrease in new listings at the beginning of the pandemic.
- 2020 outperformed 2019 in the second half of the year (Jul-Dec), with 2,394 new listings compared to the year prior’s 2,035.
Number of Sales
|Laurentian Hills/Country Hills W||329||326||0.92%|
|Columbia Forest/Clair Hills||175||197||-11.17%|
|Uptown Waterloo/North Ward||154||138||11.59%|
|Colonial Acres/East Bridge||143||149||-4.03%|
|Downtown Kitchener/East Ward||127||132||-3.79%|
|Beechwood Forest/Highland W.||91||107||-14.95%|
|Hidden Valley/Pioneer Tower||61||41||48.78%|
|Upper Beechwood/Beechwood W.||59||57||3.51%|
|Grand River North||56||55||1.82%|
|Alpine Village/Country Hills||54||58||-6.90%|
|Downtown Kitchener/W. Ward||37||39||-5.13%|
- Pioneer Park / Doon / Wyldwoods was the top producing neighbourhood for the second year in a row, with 366 single detached homes sales.
- Lexington / Lincoln Village experienced the most growth year-over-year, increasing 54.7% from 106 single detached homes sales in 2019 to 164 in 2020.
Average Sale Price
|Hidden Valley/Pioneer Tower||$1,365,944||$1,156,812||18.08%|
|Colonial Acres/East Bridge||$887,750||$735,617||20.68%|
|Upper Beechwood/Beechwood W.||$855,773||$785,564||8.94%|
|Columbia Forest/Clair Hills||$777,275||$692,741||12.20%|
|Grand River North||$673,332||$540,184||24.65%|
|Beechwood Forest/Highland W.||$661,888||$561,396||17.90%|
|Downtown Kitchener/East Ward||$612,634||$542,327||12.96%|
|Laurentian Hills/Country Hills W||$601,490||$518,729||15.95%|
|Uptown Waterloo/North Ward||$580,530||$523,169||10.96%|
|Alpine Village/Country Hills||$580,425||$500,755||15.91%|
|Downtown Kitchener/W. Ward||$562,446||$454,478||23.76%|
- Hidden Valley/Pioneer Tower continues to produce the highest average sale price in the city ($1,365,944 in 2020), and is the only area with an average sale price over $1,000,000.
- Grand River North experienced the most growth year-over-year, with the average single detached sale price increasing 24.7% from $540,184 in 2019 to $673,332 in 2020.
Projected Real Estate Market Conditions
At Chestnut Park/Christie’s International Real Estate, we believe the market will continue to perform at the same rate as we experienced in 2020.
Due to the high volume of sales activity in 2020, we anticipate there could be a shortage of inventory available in 2021. Should this occur, prices will most likely continue to accelerate due to the higher demand as more buyers seek home ownership in the Region of Kitchener-Waterloo.
There are three main factors contributing to our opinion which include:
- The Pandemic: For this first time in decades, Stats Can reported that Metropolitan Toronto experienced a decline of 50,300 in population from July 2019 to July 2020. Conversely, areas outside of the Downtown core absorbed this population migration.
- Mortgage Interest Rates: We are at this time experiencing the lowest interest rates recorded in history. This week, The Hanley Mortgage Group, (a preferred mortgage brokerage firm of Chestnut Park) posted their variable and 5-year special rate of 1.6%. Rates are expected to continue to stay low with no anticipated Bank of Canada rate increase projected or expected for 2021 and into the first half of 2022.
- Government Stimulus: The current government is committed to a $100 Billion Stimulus Package to ease the economic impact of the COVID-19 crisis in order to build the economy and help keep Canada on its positive growth path.
All statistics gathered from Kitchener–Waterloo Association of REALTORS® (KWAR).
This publication is not to be copied or duplicated without the express written permission of Roxanne Finn or Claxton Finn.
This publication is not intended to solicit buyers or sellers currently under contract with a brokerage.
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