Housing prices in Waterloo Region continue to see a sharp increase and many potential buyers are scared its getting too expensive.
“We’re really starting to price out the younger generation,” said Marty Green, Broker Manager at Remax Twin City Realty.
According to the Kitchener-Waterloo Association of Realtors, the average price of a detached home in Waterloo Region in October was $742,596. That is an increase of 21.7 per cent over last year. During October 2019 the average price was $610,840
Green said he’s noticed many younger people picking up extra jobs in order to save enough for a down payment.
“They have multiple streams of income coming in because they need the extra money to look at purchasing a home because otherwise they’ll be renting," he said.
Dylan Kenzie and his wife, Jordyn, just bought a home in the Preston area of Cambridge. He said house hunting was a challenge as a first-time buyer.
"It's not where the wife wanted to go, but we did it, we made it work," Kenzie said.
The current market made them feel priced out of their ideal neighbourhood, even searching in the $400,000 to $500,000 range.
"We saw stuff in our price range and sure enough as soon as we started bidding on some of these houses, we were just bottom of the barrel," Kenzie said.
He said they were close to giving up after a month of searching. When they finally won a bid, they paid $90,000 over the asking price.
Green said he recommends anyone who wants to get into the market, do so as soon as possible because as prices continue to rise.
“Just imagine, if you forego last October and here we are a year later and prices are up 20 per cent and you missed out on that huge profit.”
Experts say the price increase is due to simple supply and demand. Green says his agents are busier than ever.
“Many of our agents are working five and 10 buyers at the same time,” he said.
He added that many people want to live here, but not enough homes are available which is pushing up prices.
Waterloo Region’s growing economy and tech sector are major factors.
"This region’s where the jobs are coming because of the tech sector. We have two massive universities that are feeding that tech sector and as you know Amazon just opened a distribution centre in Cambridge," he said. "Tremendous job opportunities here.”
He said another reason for demand is Toronto and GTA residents, looking for more space.
"If they’ve been allowed to work from home then they’re thinking to themselves, why am I living in a 600 square foot one million dollar I could go buy something, you know, a full house with a backyard in Kitchener-Waterloo.”