July 2024 Market Stats

As we transition into fall 🍂, it’s important to note that this season often brings heightened real estate activity, making it an excellent time to consider selling.

Fall offers motivated buyers eager to close before the holidays, less competition from other sellers, and homes that shine with the season’s cozy atmosphere and vibrant colours. The pleasant fall weather also makes it ideal for showcasing properties with pools, landscaping, and gardens before winter sets in.

Waterloo Region Housing Market Sees Modest Sales Increase in July Due to Lower Interest Rates and Higher Inventory:

In July, 639 homes were sold in Waterloo Region through the MLS® System of the Cornerstone Association of REALTORS®, marking a 4.6% increase from last year but a 16.6% decline compared to the 10-year average for the month.

In July, a slight year-over-year increase in home sales followed a reduction in interest rates, which gave the market a modest boost. While this uptick is encouraging, many buyers remain cautious, waiting for further rate decreases and better conditions.

Total residential sales in July included:

• In July, 382 detached homes were sold, up 4.1% from July 2023. The average price was $914,469, a 0.6% decrease from July 2023 but a 1.6% increase from June 2024.
• In July, 126 townhouses were sold, up 5.0%. The average price was $617,062, down 7.7% from July 2023 and 7.1% from June 2024.
• In July, 82 condominium units were sold, up 9.3%. The average price was $494,897, down 0.6% from July 2023 but up 7.1% from June 2024.
• In July, 48 semi-detached homes were sold, up 9.1%. The average price was $667,063, down 0.6% from July 2023 but up 2.7% from June 2024.

In July, the average sale price for all residential properties in Waterloo Region was $782,716, down 1.6% from July 2023 and 0.9% from June 2024.

In July, 1,391 new listings were added to the MLS® System in Waterloo Region, up 15.9% from last year and 27.5% above the 10-year July average.

At the end of July, 1,817 homes were actively for sale, up 61.9% from last year and 38.9% above the 10-year July average of 1,308 listings.

In July, the average time to sell a home was 22 days, four days longer than the previous month. This compares to 16 days in July 2023 and a five-year average of 17 days.

On July 24, 2024, the Bank of Canada reduced its overnight lending rate from 4.75% to 4.5%, a move widely anticipated by financial markets. This marks the second rate cut since the pandemic, bringing rates back to April 2023 levels. The Bank acknowledged slower economic growth in early 2024, particularly in consumer spending and housing, but forecasts stronger growth later in the year and into 2025 as borrowing costs continue to ease.

While challenges such as municipal zoning, high development fees, and construction labor shortages are affecting housing supply, the Bank remains optimistic. As inflation moderates and borrowing costs decrease, the housing market is expected to see renewed strength, with potential boosts in exports, household spending, and investment. The Bank’s next rate announcement is set for September 4, 2024, offering further insights into the economic outlook.

This rate reduction is a positive signal for the housing market, indicating potential growth and improved conditions ahead. If you have any questions about the real estate market or are thinking of buying or selling, contact us today—we would love to hear from you!