The Kitchener-Waterloo real estate market is moving toward balance in 2024. Like other areas, there are trends helping to shape this market. Some of these, like an influx of new arrivals, mirror different parts of the country. Others are more unique to the Kitchener-Waterloo area, like an expanding Tech hub.
Understanding the projections and trends in the area is the first step for buyers and sellers to make informed decisions and assemble effective investment strategies. Predicting future movements in any real estate market means examining the current data.
Policymakers need to understand the projections and trends to make good decisions about the public services, zoning and infrastructure in Kitchener-Waterloo.
The Growing Appeal of Alternative Housing in Kitchener-Waterloo
Alternative housing solutions are taking shape in this area, and at the top of the list are modular and tiny homes. These are brought about to satisfy some of the area’s affordability needs. A Better Tent City (ABTC) is a series of these homes that sprung up in Kitchener, Ontario, with support from city politicians, local school board members, and the community in general.
These small cabins now serve as a bridge for homeless people to more permanent solutions.
The City of Kitchener is also making some inroads to improve the conditions in its rooming houses, so there’s another avenue of low-cost shared housing. The city has set up an advisory committee with an eye to updating the zoning by law to permit more lodging houses in the area.
Private industry is doing its part to supply alternative housing in the area. Companies like MyOwnCottage.ca offer eco-friendly, affordable prefab homes that are custom-built.
Waterloo Market Dynamics: What Buyers and Sellers Need to Know
Demographics
This data reflects the population through markers such as income, gender, race, and age. Some of the influencing factors here include population growth and migration patterns.
Canada’s immigration numbers will draw people to the Waterloo region Tech industry. Major players in this industry are expanding in the region, which means there’s more likely to be an influx of skilled professionals looking for housing, including those from other countries.
According to the Remax Housing Market Outlook for the area, it’s still a buyer’s market in Kitchener-Waterloo. They point to the fact that newcomers are driving a more significant demand in the area in the condominium and rental markets.
Market Stabilization
The average sale price for a property in the Kitchener/ Waterloo Cambridge housing market for April 2024 was $800,087. This represented a stabilization, a trend expected to continue in 2024. Sales representatives in the area are predicting moderate pricing increases.
Some of the other essential markers point towards a balanced sales-to-new listings ratio. That indicates that home prices are balanced, contributing to a healthy real estate market.
Interest Rate Factors
A change in interest rates in 2024 is predicted. Home buyer costs will be affected in the Kitchener/ Waterloo area and, by proxy, buyers’ purchasing power. According to the Remax Housing Market Outlook, many first-time buyers are looking for homes that have additional suites so they can rent them to offset costs from interest rates.
Finally, buyers and sellers will both want to know the most popular neighbourhoods. For 2024, The Remax report states that Laurelwood, Westmount, and Doon South are one, two, and three.
With all these factors and others in play, some people are looking for alternative housing sources in the area.
Everyone involved in the real estate market in Waterloo sees that buyers’ purchasing power is driving it. Even though the benchmark prices in Kitchener-Waterloo rose 0.6% monthly, these prices are still 1.9% lower than they were for the same time frame a year ago in 2023.
Kitchener Real Estate: A Snapshot of Today’s Market
The real estate market in Kitchener generally includes Waterloo and Cambridge as well. There’s some good news if you own a property there or are looking to buy. The average home prices in the Kitchener- Waterloo area increased by a modest 0.3% year over year.
However, as of May 8th, 2024, prices have declined by 0.8% on a monthly basis to an average of $800,087. There are a few factors at play here. The hold on interest rates, plus high rents and low vacancy rates coupled with the immigration growth across Ontario, are helping to support prices in the area.
Some metrics that add to a positive real estate outlook include the annual growth rates. The Waterloo region’s gross domestic product is consistently in Canada’s top five for metropolitan areas. It is projected that the area will have a yearly growth of over 2%, supported by various factors, such as the construction of a light rail transit.
Are You Looking for Alternative Mortgage Solutions?
Mortgage Broker Store can help you with competitive private mortgage or loan rates. One of our priorities is loans that don’t meet traditional lending institution requirements. Our team includes private lenders, brokers, and authorized mortgage agents. Let us help you prepare for and get a product that meets your requirements.
Email ron@mortgagebrokerstore.com or call 416-499-2122.
