Even with the rise in interest rates, the Kitchener-Waterloo area outperformed yearly averages and had the second most homes sold in November to date. 483 residential properties were sold in the area. This number is 14.2% higher than the same time the year previous as well as 19% higher than the yearly average for November.
Experts believe this is a result of the area continuously being discovered as a desirable place to live despite it being very expensive. People see the LRT, a thriving tech sector, and a variety of other factors as being the main reason it is a good idea to invest in the area. This was also the second straight month with stronger than average sales.
Basically, all property types saw an increase in sales. There were 152 condo units sold which is a 52% improvement from the previous November. This could be a result of more prebuild opportunities and builds finishing construction. In addition, those GTA investors don’t want to spend their time managing property or are purchasing for their children who are students in the area.
According to KWAR this could also be as a result of the increase in interest rates. Homeowners are seeing this as a chance to make some cash as home-buyers are worried the interest rates will continue to rise in Canada as a potential recession looms.
Prices Continue to Rise
As previously mentioned, the prices have risen and are above average for the property types being sold. That continued this month where the average sale price increased 7.6%. There have been rises in all property types similar to the amount sold.
Decrease in Realtor Listed Properties
There was a decrease compared to last year’s number of just 1.8%. There are also 12.8% less active listings. That said, the amount listed are well above the projected 10-year average – by about 18%. I don’t believe the decrease in realtor listed properties is an indicator of poor health in the area. There can be a lot of reasons that account for this that ultimately do not affect investors to substantially.
In conclusion, the area saw healthy growth compared to other areas in Ontario. Even outperforming area in Southern Ontario. London still looks like a fantastic area to invest as it continues to perform extremely well next to its Southern Ontario sister cities. The numbers above indicate its basically a good time to buy and a good time to sell. Buying now is a safe position to make even if interest rates don’t rise, real estate is generally a good investment when the economy is bad. Selling now would also be an intelligent decision in order to make the margin on rising home prices in the area.