Seller’s market expected for 2020, prices to increase 7%
The Kitchener Waterloo housing market will continue to favour sellers in 2020, with residential prices expected to increase by seven per cent.
Kitchener-Waterloo sat in seller’s market territory in 2019, and the trend will likely continue into 2020 due to low inventory and multiple-offer scenarios in the region. Housing affordability has been a major concern over the past year. The construction of affordable housing has not been able to keep up with the demand. Immigration, lack of supply and the aftereffects of the stress test are all expected to continue putting pressure on the housing market and impacting activity in 2020.
First-time homebuyers and foreign buyers drove demand in 2019, with the most in-demand neighbourhoods including Doon, Laurentian Hills and Huron Park.
Continued population growth and strong employment numbers are expected to boost the Kitchener-Waterloo housing market in 2020.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”