Current Listings:
There are currently 10 homes listed for sale with the Kitchener-Waterloo Real Estate Board in the rural towns and townships. The average list price for homes listed in Rural Waterloo Region is $1,376,330. The Median list price for homes currently listed for sale in Rural Waterloo Region is $949,950.
Recent Sales
In the last month of 2021, there were 35 homes sold through the Kitchener-Waterloo Real Estate Board in the rural towns and townships. The average list price for homes sold in Rural Waterloo Region last month was $889,909. The average sold price was $1,023,552. This represents 19.74% over list price.
The average days on market for these sales was 35, though the median days on market was only 8.
The median list price for homes sold in Rural Waterloo Region last month was $750,000. The median sold price was $941,000. This represents 19.35% over list price.
Review and Forecast
After an unusually exuberant real estate market in 2021 where home values have risen by more than 20%, many people are wondering what to expect in 2022. From the news that I read, here are my predictions.
Rates
The low interest rate environment in Canada will be ending soon. How soon? As early as March, but more likely April. Expect rates to rise 3 or 4 times in 2022 by a quarter point each time. This will have a short term impact of 3% to 5% increases in prices as homebuyers try to buy before rates go up.
Rents
The cost to rent residential real estate was up about 15% last year. The demand for larger units was greater and so was the cost to rent. Expect more of the same in 2022.
Home Prices
Home prices surged in 2021 due to high demand, low interest rates, disposable income, the pandemic and historically low inventory levels. In 2022, homes prices are forecasted to rise by about 10%. Prices are expected to level off in the second half of the year.
Sales Activity
As inventory levels remain low, the number of homes sold in 2022 is predicted to fall by about 12%. Waterloo Region has the third tightest real estate market in the country.
