Kenora’s housing prices continue to rise
Though it seems like the COVID-19 pandemic may be slowing down, the housing market in Kenora and the surrounding area continues to speed up as prices continue to increase.
In March the Canadian Real Estate Association said in a February report that the average price in Ontario was a record-high $1,086,493, an increase of 25.8 per cent from February of 2021.
The more comprehensive year-to-date average price was $1,052,139, a sizable gain of 25.7% from the first two months of 2021.
Angela Kuchma, Broker of Record for Remax Northwest Realty says that our average housing prices have gone up 3-5 per cent, which isn’t anywhere close to the provincial average.
“I think we have pretty fair pricing compared to the rest of the province, said Kuchma. “In a small town like this it may seem a little higher but the demand for housing hasn’t really gone away, we have a really strong market.”
Looking back Kuchma said the average price in 2022 for an entry-level two or three-bedroom family home is between $275,000-and $300,000.
With the housing market in Kenora being so competitive it’s created struggles for first-time home buyers. Kuchma says the average price range for first-time homebuyers is around $300,000-$350,000, which has created a saturated pool of buyers in a smaller market.
“We have way more buyers competing for houses when they do come on the market. I think the biggest key for that is being ready and working with a realtor and understanding the processes so they can be successful.”
As we move into spring Kuchma said the housing demand is beginning to pick up again, in Kenora as numerous houses are starting to hit the market.
“As the houses trickle onto the market the buyers are coming out in drones just because they’ve been cooped up all winter long and are looking for changes and exciting new starts for their lives as well.”
As a result of the COVID-19 pandemic, Canadian banks have lowered interest rates to as low as 1.75 per cent, which allowed many to enter the housing market.
“With the pandemic and the increasing interest rates, it’s pretty much caused an urgency for some people to want to buy a house before things go up in prices.”
Prices in Kenora have been soaring this past year and the introduction of a new bidding system in Ontario has led to a hot housing market.
The new system allows the seller to set an “offer by” date for when all bids need to be in and agents can’t disclose what other buyers are willing to pay.
“I think there’s a lot of reasons why it’s not a bad thing. the [old bidding] system has been in place for a long time and it’s definitely something that the sellers ask for,” Kuchma says.
As of June 1, a new mortgage stress test for homebuyers has been added that may make it a little tougher for buyers to receive a mortgage. The hope is that the new stress test will cool down Canada’s hot housing market.
Kuchma urges those that are starting to look for a house to use a realtor as she noted they have the connections, and the tools to find buyers their perfect house.