Kitchener Waterloo Real Estate News
Monday December 28, 2020
Monday December 28, 2020. In this edition of Kitchener-Waterloo Real Estate News: Predictions, forecasts and best guesses for 2021, Canadian real estate forecast, Ontario real estate predictions, Kitchener-Waterloo best guesses, design trends, mortgage rates, luxury real estate, lockdown…
1. Predictions, Forecasts and Best Guesses for 2021
Most every year at about this time, I collect all the predictions, forecasts, outlooks, prognostications and best guesses from across the internet, cull them into one post and try to make sense of where we may be headed in the coming year. Typically, I’m too conservative in my estimates. Of course, this year (2020) I was way off. But no one could have predicted in December 2019 the wild ride ahead.
In the coming year, Covid-19 will continue to be a wild card, shaking things up in unexpected ways.
Secondly, the real estate market will be driven from the supply side. We will be starting the year with an historic low level of inventory met with ever increasing demand.
In short, prices are going to go up, demand is going to remain high and listings are not going to last long on the market.
2. Canadian Real Estate Industry Forecasts Prices Rising Over 9% Next Year
CREA forecasts an average sale price of $620,404 for 2021, up 9.1% from this year. For 2020, the industry expects the average sale prices to finish 13.1% higher than 2019. For reference, in 2019, prices only increased 2.4% at the national level.
3. Ontario Real Estate Prices Forecasted To Rise Over 16%
CREA forecasts the average sale price will hit $823,656 in 2021, up 16.3% from 2020 levels. The industry expects 2020’s year to finish at $708,377, up 17.1% from last year’s average. In 2019, prices only increased 6.3% from the previous year.
Southern Ontario real estate prices, outside of Toronto, have been responsible for most of the price gains.
4. Kitchener-Waterloo Real Estate Market Forecasted to Rise 14%
I haven’t got a specific prediction from a credible source in the Kitchener-Waterloo area as to what to expect in 2021 in terms of average sale price and percentage growth year over year. However I think it is very safe to say that Kitchener-Waterloo will be nearly on par with the Ontario forecast as a whole. Based on the news I read, the numbers I know, I would conservatively predict a average 14% price rise.
5. Mortgage Rates Will Stay Low
The Bank of Canada has signalled that interest rates will be low well into 2022 and possibly even 2023. As such, mortgage interest rates will also stay historically low.
6. 18-Hour Cities Across Canada Will Continue to Drive Housing Demand
With increased flexibility to live and work anywhere, we can expect home buyers to continue to look further for affordable, spacious, single-family housing, which in turn is expected to drive demand within these cities and consequently put upward pressure on home prices as has been the trend in 2020.
7. 10 Design Trends Homeowners for 2021
Multi-zone kitchens, upgraded lighting, and oversized rectangle tiles are among the trends sweeping home design in 2021
8. The Luxury Real Estate Trends To Watch For In 2021
Demand for exclusive residential properties will continue well into 2021 even as the vaccine for the coronavirus becomes widely available.
9. Moving parts, moving people.
There are a lot of moving parts and unknowables for Kitchener-Waterloo real estate in 2021 but a few things are certain:
Lack of supply will continue to be the most powerful influencer on price for the duration of 2021, possibly in to 2022 and beyond.
In the short term, with a provincial lockdown, those sellers who don’t have to sell may wait out lockdown and maybe the winter before listing their homes for sale.
In the longer term, the pandemic has led many people to reevaluate priorities. I expect first-time buyers and urban dwellers to continue to look at the homes and lifestyle that Kitchener-Waterloo has to offer.
10. Further Study
Keith Marshall’s Real Estate Blog
Kitchener-Waterloo Real Estate News
How’s the Market and other real estate videos
11. Call to action
Call me. It’s time to take action.