Is it a Buyer’s or Seller’s Market in Kitchener/Waterloo/Cambridge?
Our Conclusion: Seller’s Market
In the tri-city area (KWC — Kitchener, Waterloo, and Cambridge), it is indeed a seller’s market. On average, sales will be around 5,500 each year through 2017. New listings will remain strong, but with prices not growing as fast as in previous years, some homeowners will be less inclined to list their homes for sale. Employment in KWC is expected increase by 1.4% in 2016, which will help fuel the demand for homeownership.
Mortgage rates will rise in 2016, which will help to moderate the surge in housing demand. Homeownership is still relatively affordable in KWC compared to the GTA (Greater Toronto Area).
Strong in-migration from the GTA means that sales are boosted, but not listings. With sales growing at a faster pace than new listings, the resale market will begin to favour sellers more than in recent years. Prices will rise slightly more than the rate of inflation, and the average price will increase to $353,000 in 2016 (up 2.9% from 2015).
How does this impact buyers?
For buyers, what does this mean? It means that your home search could take longer than expected. Due to the increased number of buyers, competition has rose dramatically and it is now harder than ever to secure the dream home of your choice. Real estate agents can help you through these difficult market conditions. They can assist you with developing a viewing plan (to go see homes not on peak hours), assist you with securing your finances (putting down an offer that takes a few days to finance rather than a week or longer), and assist you with the negotiation of the home price (using a home inspection as a crucial tool).
Demand for housing will remain strong through 2016. This is largely fuelled by the rise in employment as well as the rise of in-migration from GTA buyers. Prices for homes will not be growing as quickly as in the past and homeowners will be less inclined to place their home on the market. This leads to increased competition from the small number of homes that are on the market. When there is a competitive market, real estate agents can help greatly.
This article was written by a fivewalls writer; Kurt Gibbons. fivewalls has a database of over 150 real estate agents profiles in Guelph, KW and London with thousands of independent and verified reviews. We believe that people should be able to research agents before choosing one to work with.