Mortgage Market in Kitchener Waterloo
Farming and Railroads put Kitchener Waterloo on the map, highways brought jobs, and a light rail system promises to take it in even newer directions. Population and economic growth present an exciting future for the housing and associated mortgage market. This article will reflect on the Summer 2016 state of the market and how Kitchener Waterloo Mortgage Brokers are responding to the challenges and opportunities here.
What’s happening there?
Kitchener Waterloo has an action plan to develop business opportunities and support start-ups towards prosperity. As a result, the Kitchener Waterloo population growth has outpaced that of the province. Its unemployment rate has also declined better than the province as a whole. Jobs have increased in manufacturing and remained stable in retail, finance, and other sectors. The population forecast of 244,000 plus in 2016 will not likely increase the median age of 37.2 nor the dominance by young families in the Kitchener community. Interesting statistics from the CHMC’s outlook report a year-to-date increase in single home starts of 4.6 per cent. But, that same data sees such a significant decline in starts for apartments and multiple units.
Prices are up.
Canadian Real Estate Wealth puts the median house price at $389,500, an indicative jump of 8.6 per cent in the month of June, but only 0.5 per cent of the available stock is on the market. Still, this tight market is not driving apartment rentals which remain reasonable and even declining slightly.
While the median price outpaces the average across parts of Ontario, it still represents an attractive price alternative to central Toronto and offers a pleasant lifestyle option to the larger city. And, with interest rates increasing slowly over the next months, buyers are looking to take advantage. Low interest rates drive more purchases, and more home sales drive up the pricing. According to CMHC and Kitchener Waterloo mortgage brokers, the POSTED, non-discounted five-year mortgage will likely move from 4.4 to 5.0 per cent. But, in 2017 that could be 4.7 to 5.3 per cent. And, of course, the threat of rate increases accelerates sales.
Kitchener mortgage brokers
Residents and immigrants alike value the music, art, educational and recreational opportunities. The community and its culture all add value to the property.
Whether consumers want to buy, re model, refinance, or secure a second mortgage, customers need professional advice on making the match between customer and lender in the mortgage market in Kitchener Waterloo. Good Mortgage Brokers fill that role, researching, negotiating, and closing financing arrangements.