As local mortgage brokers with over 12 years of experience in financing homes in Kitchener, there are three main things that will continue to drive the local market upwards for years to come. One is the strength of the local economy, affordability relative to the GTA, the other are low-interest rates. The combination of these three forces, as we will see, will continue to provide strength to the local Kitchener market.
But first to summarize where were are at, according to the Kitchener Waterloo Real Estate Board:
As of January 2021:
- Total residential sales are up 24.9% compared to January 2020.
- Approximately half of purchases are coming from GTA/ Toronto.
- The average sale price is up 23.9% compared to this time last year.
- The average sale price in Kitchener Waterloo is $695,582
- The supply of housing is not keeping up with the demand.
- The average number of days to sell is 16 days, while many properties sell within 1 day.
Strength of the Local Kitchener Economy
The local economy is very diverse, and is spurred by local knowledge works and by large tech and manufacturing companies that are choosing to call Kitchener their home. Unlike some other areas surrounding GRA, Kitchener is not reliant on commuters to prop up its housing market. The market is in large part driven by local the employed population. As existing technology, finance and advanced manufacturing companies continue to grow in the area, there are also hundreds of local startups that provide a pipeline for growing, and employers looking to the future.
Kitchener Proximity to GTA
Kitchener offers a pleasant standard of living and is highly desirable for those working and living in Toronto, to call Kitchener home. The effects of COVID have caused many to search for a detached home outside of densely populated Toronto. So this is likely to continue to be a central factor for those looking to remain close to Toronto for in-person visits, while also experiencing affordability that is often less than half the price of a home in, or closer to Toronto. Even if the housing market pricing rebounds in coming years, this price pullback is likely to be more moderate in Kitchener than in inner GTA due to this value proposition.
Low Mortgage Interest Rates Kitchener
As a local mortgage broker, we offer some of the lowest mortgage rates not only in Kitchener but in all of Ontario. The trend for low-interest rates under 2% for 5 years fixed is likely to last for years – perhaps more than a decade. In 2021 we have not yet seen the worst of the covid economy and there will be a continued need to economic stimulation, driven by low rates for years to come. When we look at low interest rates, combined with the other feature that makes the Kitchenrhousing market attractive, it is the perfect combination that points to a market that is more likely than not, to see continuous growth for many years to come.
Connect with us at Altrua Financial for a free consultation and a pleasant, educational mortgage experience.