We already talked about walkability in out earlier post – Kitchener, Waterloo and Cambridge neighbourhoods with highest Walk Score.
Let’s look how walkability affects home prices. The basic theory in real estate is that the more attractive the location, the higher the value of the home. Since 2007 The Real Estate Investment Network (REIN) released a good number of reports on evaluation and investment opportunities in real estate. Which outlining the positive correlation between transportation improvements and increased property values for homes close to these transportation changes.
One of the most interesting findings in REIN reports, for us personally, was that distance is no longer measured in kilometers, but in minutes. Another, that proximity to amenities has become one of the key determinants of a property’s value.
Since that time, REIN has applied the same fundamentals to transportation improvements occurring in major Canadian cities, including Kitchener, Waterloo and Cambridge. These reports list that transportation improvements happening in the regions should witness a 10%-20% positive value and rental premiums in comparison to communities that are located farther away from these improvements. Our research through MLS statistical data provided by Kitchener-Waterloo Association of Realtors showed 8%-10% positive value on resale prices in the neighbourhoods with high walkability.
Here is information of an average home sold price in K-W-Cambridge neighbourhoods with different walk scores and proximity to public transit. To see a more accurate picture, we added the sold price per a square foot. Information has been taken from MLS statistical data for the last 12 months (April 2017-April 2018). Let’s see numbers:
|Walk Score – 25 (based on 11 sales)
Average SP $447,000
Ave SP/Sq Ft $317
|Walk Score – 25 (based on 34 sales)
Average SP $521,000
Ave SP/Sq Ft $328
|Walk Score – 25 (based on 28 sales)
Average SP $455,000
Ave SP/Sq Ft $302
|Walk Score – 75 (based on 14 sales)
Average SP $455,000
Ave SP/Sq Ft $371
|Walk Score – 75 (based on 38 sales)
Average SP $572,000
Ave SP/Sq Ft $346
|Walk Score – 75 (based on 24 sales)
Average SP $493,000
Ave SP/Sq Ft $307
If you are interested to work with an agent who understands what factors affect property values, please contact us. We’d be glad to be part of your real estate journey.