Home owners in the Waterloo Region are taking advantage of the buoyant real estate market by listing their homes to make more money. Home sale in the region for the month of May increased beyond historic levels with Kitchener and Waterloo recording a sales price of over $594,000 an increase of 35% from the previous year.
There was also a 29% increase in home prices in Cambridge with the average home price at $528,000 for the month of May.
As other markets in the GTA experiencing a drop in home prices by 20%, this is not the case for Waterloo Region. There has been no indication of home prices declining.
According to James Craig, president of the Kitchener-Waterloo Association of Realtors, in contrasts to other regions that are seeing a down slide in market demand, home demand in Waterloo Region is very vibrant and this many believe is as a result of home prices.
Home prices for all types of properties in Toronto saw an increase in May with the average home price at $863,910 which is higher than the figure recorded last year of $752,100. However, according to the Toronto Real Estate Board, the highest figure for the year so far was recorded in April with home prices at $919,614.
Market experts are attributing the decline in home prices as a result of the 15% tax that was introduced last year by the government to cool down home prices in the GTA.
But Waterloo Region is expected to have a different story says local investors since home prices in the area are estimated half the price of homes in Toronto. In May, the average home price for homes in Toronto was $1,141,041 while the price for homes in Waterloo Region was at $595,000.
With the record setting real estate market in Waterloo Region, home owners are now willing to list their homes on the market which in some way is a very positive move as it is addressing the lack of home supply in the area.
With home sales soaring, there seems to be less pressure on the supply end of the market as new listings continue to increase states Jim Robinson, president of the Cambridge Association of Realtors.
There has also been an increase in sales from the previous year of close to 68% with a total number of $137 million worth of homes. The number of sales of detached homes also increased over 30% in May.
Kitchener and Waterloo also saw an increase in home sales of almost 8.2% with close to 816 residential home sales in May which is a 6% increase from April. This is the second time in a row that home sales were at a record high.
The increase in home listing was also a very welcoming in Waterloo as the demand for homes continues to increase which will help put an ease to the supply end of the market.