Kitchener/Waterloo/Cambridge Home Prices See Double-Digit Growth in the Second Quarter of 2017
High buyer demand puts continued upward pressure on prices, with a slight market slowdown underway
The aggregate price of a home in the Kitchener/Waterloo/Cambridge region saw a significant increase in the second quarter of 2017, rising 20.7 per cent year-over-year to $435,367, according to the Royal LePage House Price Survey2 and Market Survey Forecast released today.
When broken out by housing type, the median price of a bungalow rose 21.1 per cent year-over-year to $401,631 in the second quarter, while the price of a two-storey home increased 20.9 per cent to $459,562. During the same period, the median price of a condominium increased 15.3 per cent year-over-year to $269,646.
"The region's increasing popularity has enticed many Torontonians into the market in search of more affordable inventory, leading the Tri-Cities to experiences unprecedented price growth in recent months," said Keith Church, broker of record, Royal LePage Grand Valley Realty. "Echoing the slowdown witnessed in the Greater Toronto Area, we have started to see local markets calm to a more sustainable pace as a slight uptick in listings has come into play, providing additional options for prospective buyers. However, while homes are being priced more reasonably, supply is still down when compared to the same time last year, and we are continuing to see multiple-offer situations in desirable neighbourhoods."
Looking ahead to the remainder of the year, Church expects year-over-year home price increases in the region to begin levelling off toward healthy single-digit norms.
Nationally, Canada's residential real estate market posted strong home price gains in the second quarter of 2017, with the majority of metropolitan markets across Canada displaying expansionary trends. During the quarter, the Royal LePage National House Price Composite showed that the price of a home in Canada increased 13.8 per cent year-over-year to $609,144. When broken out by housing type, the price of a two-storey home rose 14.6 per cent year-over-year to $725,391, while the price of a bungalow increased by 10.7 per cent to $511,965. Over the same period, the price of a condominium climbed 13.4 per cent to $397,826.
"Following a period of unprecedented regional disparity in activity and price appreciation, we are now seeing a return to healthy growth in the majority of Canadian housing markets," said Phil Soper, president and CEO, Royal LePage. "The white-hot markets are moderating to very warm; the depressed markets are beginning to grow again. Canadian housing is in great shape a statement that I certainly did not make last quarter."
"The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario," continued Soper.
Looking ahead to the remainder of the year, Royal LePage forecasts that the national aggregate price of a home will increase by 9.5 per cent in 2017 to $617,773 when compared to year-end, 2016.