RE/MAX released a report on the Canadian Housing Market on November 7, 2011, detailing the gains made over the last decade. Follows is the Kitchener-Waterloo section of that report, but you can read the press release and full report on the RE/MAX website.

Kitchener-Waterloo Market Update

Changing consumer appetites have supported the most recent evolution in Kitchener-Waterloo's housing mix, improving the quality of homes and propping up all types of new construction throughout the region. The trend has contributed to rising average price, urban and suburban growth and – most notably – a considerable upswing in the city's burgeoning condominium segment.

The most significant boost to Kitchener-Waterloo's housing stock came over the past decade, when renovation and new construction pushed the value of building permits to an unprecedented $6 billion – two and a half times the amount spent just one decade earlier. Incidentally, during the same period, average price – also supported by a number of additional solid fundamentals – climbed 84%, from $167,317 in 2000 to $289,041 in 2010. The upswing in the renovation trend in recent years has improved the quality of listings.

Today's purchasers have higher expectations than in generations past and are driving demand for properties with better finishings and features. Renovated homes in mature neighbourhoods, offerings the latest bells and whistles, are still generating multiple overs, while the overall market has moderated to some extent. Builders have answered the call, with new subdivisions prompting the emergence of up-and-coming areas on the peripherals of the city.

Immigration and a higher cost of living may impact the evolution of the traditional detached home, as an increasing number of newcomers begin to seek out two-family homes or those offering a separate apartment. Although this type of housing remains hard to come buy, it will be a trend to watch going forward.

Young buyers, investors and baby boomers have seriously embraced higher-density residential developments throughout Kitchener-Waterloo. These units have gained so much traction that they may well overtake the long sought-after bungalow as the product of choice for both first-time buyers and downsizes in the years ahead. Lifestyle is foremost, with momentum strongest in Downtown Kitchener and Uptown Waterloo. Affordability is one reason, with units starting from $150,000. A tightening vacancy rate and rising rental costs are also playing a role.

The city is home to its fair share of exciting developments. Recently completed and ongoing projects in Kitchener include the trendy Kaufman and Arrow Lofts, The Intowns, City Centre Condominiums at the former Centre Block site, as well as Icon condos.

Uptown Waterloo continues to be transformed, with residents drawn by proximity to the hospital, university and major businesses, as well as culture, shopping and festivals in a pedestrian-friendly local. Developments such as the Bauer and Seagram Lofts and 122 Park have been well-received. Yet, the crown jewel of Uptown Waterloo may yet be the Barrel Yards development – the largest and most ambitious brownfield redevelopment to date, which, when complete, will be home to the luxury hotel, condominiums, townhouses, live-work units, rentals, a senior's residence, office and retail space, a park and underground parking for 2,400 cars.

Condominium townhouse have also emerged as an increasingly sought-after bridge between condo apartment ownership and the detached home for first-time Kitchener-Waterloo home buyers. Boomers are also looking to townhouse as an alternative to apartment-style living and new product such as quads and brownstones have raised the bar and the appeal.

Infill, redevelopment, new construction and renovation will continue to drive the revitalization of the region, supporting intensification efforts, population growth and propping up average price in the years ahead.

Currently, year-to-date (September) average price hovers at $295,845 in Kitchener-Waterloo, up about 4% from 2010, while sales, at 3,670 units, are off last year's pace by approximately 5%. An influx of new listings is expected to keep prices in check in the short-term, with modest appreciation of 3% - 4% projected by year-end.