Kitchener ranks third on New Housing Price Index
House prices in Kitchener are rising at the third fastest rate in Canada. According to new numbers from Statistics Canada today, the New Housing Price Index rose 0.3 per cent in March after a 0.1 per cent increase in February. The report reveals prices rose the most in London, Ont., (1.7 per cent) between February and March, followed by Montreal and Kitchener (both up one per cent).
Ted Scharf, President of the Kitchener-Waterloo Real Estate Board, says the index reflects the confidence that exists in the local housing market. Scharf tells 570 News the price index is reflective of new housing and speaks positively about developers in our community and the houses they are building to meet consumer demand. Scharf says there has been a sharp increase in demand for homes worth $500,000 which skews the balance of what's going on in the market. Scharf says the half million dollar market has increased by 200% over last year as buyers shift their focus from the lower end of the marketplace and attempt to "move up" or are considering high end homes.
Scharf says the types of employees being attracted by our region's high tech sector are part of the reason for the increase in demand for high end homes. Scharf says companies like Research in Motion and Sandvine are offering salaries that allow employees to buy into the higher end of the real estate market. He also says a $500,000 home is not what it was ten years ago, describing it as a "good executive home" while newer semi-detached homes are selling for $250,000 on their own.
Scharf says the index is demonstrative of our region's recovery from the economic downturn. He points to job losses in the manufacuring sector that have now been absorbed by other industries and re-training in local colleges that have helped the real estate market rebound. The fact that Kitchener has the third fastest climbing rate for new home prices is a sign to outsiders that the region is a good place to invest, according to Scharf.
With a 0.5 per cent drop, Charlottetown registered the largest monthly decline in March, followed by Hamilton and Edmonton (both down 0.3).
Year over year, the index was up 1.6 per cent in March, following a 0.9 per cent increase in February.
The largest year-over-year rise was recorded in St. John's, N.L. (up 5.1 per cent), followed by Winnipeg (4.5%) and Vancouver (4.3).
Among the 21 metropolitan regions, three registered 12-month declines in March: Victoria (down 4.6 per cent), Edmonton (2.4) and Charlottetown (1.2).
The New Housing Price Index has been advancing since last July.