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INCREASED INVENTORY AND LOWER PRICES PROVIDE OPPORTUNITIES FOR BUYERS

WATERLOO REGION HOUSING MARKET IS COOLING

“The average selling price for residential properties has decreased by 5.8 per cent since June 2023, with detached homes showing the most significant drop at 10.3 percent. This indicates a broader softness in the market,” says Moura. “The silver lining is this presents a more favourable pricing environment for buyers, with more choices, greater flexibility, and the potential to negotiate better deals.”

“The Waterloo Region housing market is cooling, with a year-over-year decrease in home sales in June, while the number of homes for sale is rising, offering more inventory to buyers,” says Christal Moura, Cornerstone spokesperson for the Waterloo Region market area.”

NEW LOCAL REAL ESTATE BOARD

Cornerstone Association of REALTORS® (Cornerstone) is a brand-new, novel association formed on July 1, 2024. Representing REALTORS® serving in the markets of Mississauga, Burlington, Hamilton, Waterloo Region, Niagara North, Haldimand County, Norfolk County and surrounding areas, it will become Ontario’s second-largest real estate board comprised of nearly 9,000 REALTORS®.

WATERLOO REGION SEES DIP IN HOME SALES DUE TO SLUGGISH CONDO MARKET

BANK OF CANADA LOWERS INTEREST RATE FOR THE FIRST TIME IN 4 YEARS

“May saw a dip in the number of sales across all categories, with condo apartments experiencing the largest drop,” says Christal Moura, president of WRAR. “The Condo market also had the greatest supply level, posing a challenge for sellers, especially for units with one or fewer bedrooms, where the current inventory level exceeds buyer demand.”

“This spring, we are witnessing a significant increase in the availability of apartment-style condos, with a record high number of units on the market,” stated Moura. “At the same time, we are observing a shift in demand away from smaller-sized condo units, potentially influenced by the higher interest rates impacting investor market activity for this property type.”

LOWERING RATES TOO QUICKLY COULD JEOPARDIZE PROGRESS

The Bank of Canada has lowered its key interest rate to 4.75 per cent, marking the bank’s first rate cut since March 2020.
But Macklem stressed that the Bank of Canada is going to take things “one meeting at a time.”
Canadians can reasonably expect more cuts so long as inflation continues to ease, and the bank maintains its confidence that inflation is steadily approaching the bank’s two per cent goal, Macklem said.
“We don’t want monetary policy to be more restrictive than it needs to be to get inflation back to target. But if we lower our policy interest rate too quickly, we could jeopardize the progress we’ve made,” he said.