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The State of the Kitchener-Waterloo Real Estate Market in Early 2022


With demand for homes higher than ever, we’ve seen record sales in Kitchener-Waterloo in the first two months of 2022. It remains an ideal market for sellers, with prices - and demand - still steadily on the rise.


But what does that mean for homeowners and buyers? We’ll examine how the real estate market in Kitchener-Waterloo has grown, and compare that to the provincial and national averages so you can understand the state of the market and where you stand.


Record sales continue through January and February of 2022

The growth of the KW housing market has continued into February of 2022, despite the cold weather, which often results in less homes being listed on the market. Monthly increases are lower than January, but a marginal increase in February leads to homes being significantly higher than they were in the same month of 2021.


February 2022 Real Estate Market Growth

The average sales price of residential homes in the KW area in February of 2022 was $1,007,109, which is 33.6% higher than February of 2021. Prices were also 5.6% higher than January of 2022, on average.


Let’s break that down further by the type of homes being sold:

Home type

Average price in January 2022

Percent increase from February 2021

Percent increase from January 2022

Detached homes

$1,214,067

33.1%

5.3%

Semi-detached

$917,535

33.8%

8.0%

Townhouse

$862,994

41.6%

2.1%

Apartment-style condominium

$572,731

37.4%

6.9%


While townhouse sales grew less than others in the past month, we can see from the year-over-year increase that they have still grown significantly higher than other homes, suggesting that they drastically increased in the months prior to this. This is shown by the table below, where we see a 16.7% increase in the price of KW townhouses from December to January.


January 2022 Real Estate Market Growth

Let’s compare this to the growth we saw in January of 2022. To start the year, the average sale price of residential properties in the KW area in January of 2022 was $955,665, a whopping 37.3% increase from January 2021.


This can be further broken down by house types:

Home type

Average price in January 2022

Percent increase from January 2021

Percent increase from December 2021

Detached homes

$1,152,707

35.5%

12.9%

Semi-detached

$849,845

35.6%

10.3%

Townhouse

$836,306

47.9%

16.7%

Apartment-style condominium

$538,239

42.2%

7.7%


As we can see, January started very strong, with significant increases (and growth much higher than we are currently seeing in February). Still, despite such massive January growth, the trend continues upward in February.


To put this growth in Kitchener-Waterloo in perspective, we’ll frame that within the provincial and national averages. The average price of a residential home in Ontario was $998,629 in January 2022, just 25.6% higher than January of 2021. Across all of Canada, the average price of a residential home was $748,439 in January 2022, just 20% higher than January of 2021. (Source: https://wowa.ca/reports/canada-housing-market).



The main driving factor to this growth is a higher demand for homes, as the number of sales per year is down nearly 20% from the previous year. This means that there are simply not enough homes to service the demand, driving prices up significantly.


When you compare KW to the provincial and national averages, we see that homes in KW have grown 11.7% more than the provincial average and 17.3% higher than the national average. Demand in KW is higher than ever, and because of that it’s a great market for sellers.



With KW home prices higher than ever and interest rates beginning to rise, buying a home is a challenging - but still attainable - endeavor. Research any incentives you can qualify for to help you out, how you can save for your down payment, and get in touch with a top notch realtor - like myself - to help you navigate the Kitchener-Waterloo real estate market in 2022.

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