REAL ESTATE ACTIVITY IS ELEVATING IN WATERLOO REGION
BANK OF CANADA RAISES OVERNIGHT RATE .25%
“Waterloo Region properties remain in high demand, driven by our diverse economy and the desirability of our community, we continue to be in a seller’s market,” says Bell. “With limited inventory and a relatively low number of new listings being added to the MLS® system, buyers face intensified competition while sellers receive increasingly competitive offers.”
“However, it’s worth noting that the number of listings being added to the MLS® System continues to be historically low.”
“The Bank of Canada today increased its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is also continuing its policy of quantitative tightening.
Globally, consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, but underlying inflation remains stubbornly high. While economic growth around the world is softening in the face of higher interest rates, major central banks are signaling that interest rates may have to rise further to restore price stability. In the United States, the economy is slowing, although consumer spending remains surprisingly resilient and the labour market is still tight. Economic growth has essentially stalled in Europe but upward pressure on core prices is persisting. Growth in China is expected to slow after surging in the first quarter. Financial conditions have tightened back to those seen before the bank failures in the United States and Switzerland.”
Over the last month we have seen the return of frantic buyers competing over only a handful of properties that generally meet their specifications. We are seeing bidding wars, double digit offer counts. The properties I’ve shown ended with winning offers in multiple hundreds of thousands over asking in extremely short time frames some as short as 48hrs most between 3 and 5 days. There is some good news too there are select properties our there that are not experience these frenzied buyers and can still be potentially had for asking or possibly below asking. It’s important to remember that generally speaking the list price is not the market price. It’s important to work with a realtor who is able to accurately predict the market price of a property.