What to expect on Kitchener-Waterloo-Cambridge housing market in 2021?
According to the outlook prepared by Statistics Canada and ReMax Report Survey, K-W and Cambridge are anticipating a home price growth around 7%. Despite the disruption of the virus, the average home price in Waterloo region went up almost 19% in 2020. It shows one of the highest increase in Canada. The major reasons are the housing supply shortage and high demand. Unfortunately for buyers it will continue in 2021. Below you can see an image prepared by ReMax analytics.
Among other trends we can see some changes in buyers’ choices. Around 30% of buyers would like a home with more space for personal amenities. Every second buyer would like to live close to a park or other green space. This shift a buyer interest from a condo to a single-detached home (singles, semis and townhouses). We anticipate that prices for mid-range detached homes will only go up as more buyers seek out home offices and backyards to make life with COVID-19 a little more comfortable.
An interest in a bigger living space has amplified the trend of a buyer interest in lower priced suburban areas. As a result neighbourhoods in Baden, Ayr, Wellesley, New Hamburg saw a significant increase in home prices during the pandemic.
Move-up and move-over buyers impacted a segment of luxury homes in the region. We saw a massive spike in demand for luxury homes since the start of the pandemic. This is expected to continue in 2021. Also, the demand for new construction homes will continue to grow.
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PS: if you want to see our prediction for Kitchener-Waterloo-Cambridge housing market in 2020, you can find it here.