Kitchener, Waterloo and Cambridge Housing Prices Healthy in the Third Quarter of 2015
Housing market boosted by employment growth in region’s technology sector
Waterloo Region - The Royal LePage House Price Survey released yesterday showed healthy price growth across all housing types surveyed in Kitchener, Waterloo and Cambridge. During the third quarter of 2015, the aggregate price of a home in this region rose 5.9 per cent year-over-year to $346,333.
Over this period, the median price of condominiums saw a significant 14.0 per cent increase year-over-year to $234,026. The median price of bungalows appreciated 7.0 per cent to $333,131, while two-storey homes rose 5.1 per cent to $363,397.
“Improving employment figures within the region contributed to year-over-year residential real estate price gains,” said Keith Church, broker of record, Royal LePage Grand Valley Realty. “Steady population growth in this area has created a market that favours sellers, resulting in quality listings moving off the market quickly.”
Church added that the layoffs at BlackBerry in recent years created concerns that residential units would flood the market, but this did not happen and new technology startups are drawing workers to the region.
Nationally, home prices showed moderate to strong year-over-year price increases in most markets in Canada. According to the report, the price of a home in Canada increased 8.0 per cent year-over-year to $502,643 in the third quarter. The price of a two-storey home rose 9.9 percent year-over-year to $615,304, and the price of a bungalow increased 6.8 per cent to $421,757. During the same period, the price of a condominium increased 2.8 per cent to $338,684.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer, Royal LePage. “In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”
“Home ownership remains a bright light amid unsettled investment and savings options in volatile global capital markets. As we lead up to election day, it’s not surprising that all of the major political parties are acknowledging the housing sector’s prominence as the foundation on which the economy has been built for years, and a critical foundation upon which Canadians can build their savings,” continued Soper.
Beginning this quarter, Royal LePage’s House Price Survey includes the Royal LePage National House Price Composite comprising house values for 53 of the nation’s largest real estate markets through the use of a proprietary, custom-built system that analyzes a housing database containing millions of real estate transactions. The enhancements are made possible through Royal LePage’s collaboration with its sister company, Brookfield RPS, a leader in residential real estate data and analytics in Canada.