The real estate market is showing signs of rebounding, with 780 homes sold last month, according to the Waterloo Region Association of Realtors (WRAR).
According statistics released by WRAR Thursday, the number of home sold in June was up 4.6 per cent from the same month last year, but down 12.3 per cent compared to the June five-year average.
“The real estate market in Waterloo region showed signs of a rebound in June, with monthly sales increasing on a year-over-year basis for the first time this year,” Megan Bell, president of WRAR, said in a news release. “The total number of home sales are down nearly 25 per cent for the first half of 2023 compared to last year but have been steadily climbing since January.”
Of the homes sold in June, WRAR said 468 were detached, up 5.9 per cent from the same time last year and 149 were townhouses, up almost 5 per cent. There were also 118 condominium units sold, up close to 23 per cent and 42 semi-detached homes, down just over 32 per cent.
The average sale price for all residential properties sold in Waterloo region was $839,869 – a 6.4 per cent increase compared to the same time last year and a 2 per cent increase compared to May 2023.
The average price of a detached home was just over $1,000,000 – a 10.4 per cent increase from the same time last year and an increase of 4 per cent from the previous month.
There were more than 1,300 new listings added to the Multiple Listing Service (MLS) in the region in June, which is a 21 per cent increase compared to the same time last year.
The total number of homes available in the region at the end of June was over 1,000, representing a decrease of 23 per cent compared to June 2022.
The association of realtors said the average number of days to sell in June was 15, compared to 13 days in June 2022. The number in June of this year is close to the previous 5-year average of 17 days.
BUYER AND SELLER IN KITCHENER
Gary Kenning has a growing family in Kitchener and is looking to gofrom a three-bedroom home to a four-bedroom home – but he admitted it hasn’t been easy.
“There’s offers that go hundreds and thousands of dollars over asking. You’re seeing prices that are a little more reasonable,” Kenning told CTV News.
He’s had no luck with his last five offers this year but noticed things are changing for the better in the last month or so.
“You’re not seeing these bidding wars going hundreds and thousands over asking. It just seems a little more stable,” he said.
Even his budget is inching lower which is beneficial as he’s also looking to sell his home.
“Our budget in the last two months has actually come down from where it was. So that’s kind of the first time that we can say that,” he said.
LOCAL REAL ESTATE AGENT
Kenning’s realtor is Shawn Ramautor with Royal LePage Wolle Realty. Ramautor said he’s also noticed the market is changing recently, with less bidding wars.
“We’re definitely not seeing the 20 or 25 offers on each property,” Ramautor said.
INTEREST RATES
But with many bracing for the Bank of Canada’s next interest rate decision, expected next week, things could take a turn.
“For buyers, where the affordability was already teetering, we could see them draw back from the market again,” Bell said in an interview with CTV News.
Ramautor said high interest rates have already caused people to dip out of the market.
“It’s pushing a lot of people out of the buyers’ pool and into the rental pool. So we are definitely seeing quite a robust rental market,” he said.
The Bank of Canada raised its overnight rate in June by 25 basis points to 4.75 per cent, the first increase since pausing hikes in January.
Some of Ramautor’s clients are considering acting fast before it’s too late.
“But it could also stimulate some buyers to use up that preapproval and get it in before rates go higher,” said Ramatour.
Experts say the real estate market is unpredictable for both buyers and sellers.
