elitere | Jul. 9, 2024
In June, 674 homes were sold in the Waterloo Region via the Cornerstone Association of REALTORS® MLS®, a 13.7% decrease from last year and a 24.8% decline from the ten-year average for the month.
The Waterloo Region housing market cooled slightly in June, with home sales decreasing year-over-year and inventory rising. The average sale price for residential properties was $790,945, down 5.8% from June 2023 and 3.3% from May 2024.
In June, 1,431 new listings were added to the MLS® System in Waterloo Region, up 7.6% from last year and 10.6% above the ten-year average.
The total number of homes for sale was 1,790, a 75.5% increase from last year and 31.9% above the ten-year average. Inventory levels rose 73.7%, with 3.3 months’ supply overall: 6.5 months for condos, 2.8 months for detached homes, and 3.2 months for townhouses. The average number of days to sell in June was 18, compared to 15 days last year and the five-year average.
The Bank of Canada’s key interest rate cut in early June was expected to stimulate the real estate market, but instead, it has motivated more sellers to list their properties. This shift creates a favorable pricing environment for buyers, offering more choices, flexibility, and better negotiating potential. The 25-basis point rate cut had minimal impact, as home prices remain stagnant, inventory rises, and affordability issues persist. Significant rate reductions are needed to re-engage sidelined buyers.
With a population increase of 2.87 million over three years, housing demand is high. However, mortgage rates may need to drop by over 100 basis points to counter economic challenges like rising unemployment. Historically, significant rate cuts follow economic strain, but current inflation concerns make such cuts less certain.
Market data suggests it may take until April next year for the next 75 basis points of cuts, as further economic slowing is needed for substantial relief. Upcoming unemployment reports are crucial for central banks to gauge easing consumption and price pressures. Borrowers should prepare for prolonged high rates, with significant cuts dependent on further economic slowing.
The next interest rate announcement is scheduled for July 24, 2024, and it will be interesting to see if rates are further cut or held steady.
The best time to move is when it suits your personal and family needs. People are always looking to buy their first home, relocate, downsize, move into a retirement home, or build their dream home. We prioritize your needs and understand the market to ensure you make the right decision at the right time. Whether you’re buying, selling, or investing, we’re here to help you achieve your real estate goals.
