elitere | Jun. 6, 2024
In May, 742 homes sold via the Waterloo Association of Realtors (WRAR) MLS, marking an 8.1% drop from last year & a 20.0% decline from the ten-year monthly average.
In May, all sales categories declined, notably condo apartments. The condo market faced high supply levels, particularly challenging for sellers, especially for units with one or fewer bedrooms, where inventory surpasses demand.
-467 detached homes (-1.3% from May 2023). The average price of a detached home was $943,859, down 1.9% from May 2023 but up 0.4% from April 2024.
-134 townhouses (-3.6%). The average townhouse price was $653,761, down 6.1% from May 2023 & 0.9% from April 2024.
-82 condominium units (-34.4%). The average price for an apartment-style condominium was $459,260, down 5.6% from May 2023 & also from April 2024.
-59 semi-detached homes (-13.2%). The average semi-detached price was $699,780, down 3.9% from May 2023 but up 5.1% from April 2024.
In May, the average sale price for all residential properties in Waterloo Region was $818,507, marking a 0.3% drop from May 2023 & a 2.3% rise from April 2024.
This spring, there’s a notable surge in apartment-style condo availability, reaching a record high in listings. Simultaneously, we’re seeing a demand shift away from smaller units, likely influenced by higher interest rates affecting investor interest in this property category.
Policymakers’ recent rate cut Wednesday (lowering the benchmark overnight rate by 25 basis points to 4.75%), signals confidence in inflation & potential for further reductions. Variable-rate mortgage holders will feel immediate effects, while fixed-rate holders wait until renewal. Though a 0.25% cut may not drastically alter payments, it could mean around $88 monthly savings on a $600,000 mortgage with a 5.75% interest rate. Forecasts suggest TD expects two additional cuts this year, aiming for a 4.25% benchmark, while CIBC & RBC anticipate three, aiming for 4%. Such adjustments could translate to significant savings, around $349 monthly on a $600,000 mortgage.
With further cuts on the horizon, there’s optimism for further transformation & positive impacts on the housing market. If you’re considering buying, selling, or have questions about the current real estate market, contact us today. We’d love to hear from you!
