05 May K-W Housing Market -this is the time to Buy
Over the last ten years the housing market in Canada has experienced a boom. This has been primarily due to very low interest rates and easier access to mortgage loans. These factors allowed many new buyers to enter the market.
In particular, the Waterloo Region — Waterloo, Kitchener and Cambridge — are expected to have rising prices and the market is to continue to outstrip demand. The local market has increased over the last 18 months by as much as 40%. There is an ongoing shortage of residential properties.
With average homes expected to reach $600,000 in nearby Hamilton–Burlington, the slightly more affordable Waterloo Region area is going to attract even more buyers than is currently the case.
With its transit infrastructure, an excellent schooling system and growing tech sector (It is becoming known as the Silicon Valley of Canada) is attracting interest. The average house prices in this area are in the region of $400,000.
It has also become difficult to meet the mortgage qualification requirements and this combined with the slight rise in lending rates will make it difficult for buyers to purchase expensive properties.
This again is expected to send more buyers towards K-W as a more affordable way to gain a foot in the housing market.
It is defiantly a seller’s market in the tri cities region. Local Buyers are frustrated with multiple offers being made on properties and the price being driven up by’’ outsiders” entering the area.
Of course it is better to try and get into this market and if you have to consider downgrading your immediate needs by say considering a smaller house then do so, assuring a worthy financial investment for the future.
It is perhaps worthwhile researching and considering the condominium market in the K-W area. This Condo market has not yet reached the same price level as the single home units. It is an affordable way to get into the property market. It may not be exactly the lifestyle you are looking for but at least you will own a property in this expanding area. History has shown that once the single unit property market becomes sated then the value of the Condo market dramatically increases. This may be the way of future growth in this area.
There is still stock available in the market upwards of $800,000 but this is now also beginning to show offers higher than the asking price of up to 2%. If you can at all stretch your funds available this is worth considering. The middle range pricing market is fast catching up to this upper range” and very soon the upper market will also begin to feel the knock-on effect with prices and stock expected to rise as well.
Therefore, if you are looking for a good investment in the estate market look no further than the Cambridge, Waterloo and Kitchener areas and expect your purchase to increase in value quickly as demand grows in this area.