Blog

HOME PRICES STABILIZING IN FEBRUARY
AVERAGE SALE PRICE INCREASE ACROSS ALL PROPERTY TYPES IN JANUARY

“Once again, we experienced record low listing sales in February,” says Megan Bell, president of WRAR. “Increased borrowing costs, coupled with a shortage of housing supply and strong demand, have put a strain on prospective buyers as affordability continues to be a top concern; however, home prices have remained stable for the past several months.”
“Limited supply and the small number of listings coming to the market continues to be a trend within the region,” says Bell. “There may be some hesitation for those considering selling their property due to decreased reported sale prices; however, with demand continuing to outpace supply and prices stabilizing, sellers are in a healthy position to make their move.”
Bell points out that although prices have fallen more than 20 per cent from their peak in February 2022, they remain significantly higher than three years ago.
The number of months of inventory is up 140.0 per cent compared to February of last year, but still historically low at 1.2 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.

HOME SALES IN JANUARY EXCEPTIONALLY LOW
AVERAGE SALE PRICE INCREASE ACROSS ALL PROPERTY TYPES IN JANUARY

“Waterloo Region’s home sales in January were at their second lowest of any single month in well over a decade,” says Megan Bell, president of WRAR. “Home sales tend to be sluggish in January, and while we expected activity to ease to reflect economic challenges, this was a larger drop than originally anticipated.”

“On a monthly basis, we saw the average sale price increase across all property types in January,” says Bell. “I’m also noticing more multiple offers happening, especially on detached homes that are priced under eight hundred thousand dollars.”

Meanwhile, the Bank of Canada again increased interest rates at the end of January by 25 basis points to 4.5 per cent. “While not a huge increase, the continuance of interest rate hikes is an ongoing factor in the reduction of home sales within the market,” says Bell.

WRAR’s president says, “The demographic of buyers is also shifting as we observe fewer buyers coming from the GTA into the region. While there are still some, it is nowhere like it was last January. These and other shifting influences mean it has never been more important for buyers and sellers to work with a local REALTOR® to help provide expertise during the homebuying and selling process.”