MAY MARKET STATS - WATERLOO REGION |
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Good Morning, We hope this email finds you doing well. As summer quickly approaches, we are finding that the real estate market is buzzing with activity. In May, we experienced a vibrant spring season, characterized by robust buyer and listing activity. Overall, our dynamic real estate market continues to attract significant attention, driven by the strength of our diverse economy and the inherent desirability of our community. With limited inventory and a low number of new listings, the market remains favorable to sellers, resulting in intensified competition for buyers and increasingly competitive offers for sellers. In May, the real estate market in the Waterloo Region saw a total of 788 homes sold through the MLS® System. This represents a decrease of 10.9 % compared to the previous year and a decline of 12.6 % compared to the previous 5-year average for the month. The total residential sales in May consisted of 463 detached homes (↓ 17.6 % from May 2022), 133 townhouses (↓ 10.7 %), 123 condominium units (↑ 17.1 %), and 67 semi-detached homes (↑ 1.5 %). In May, the average sale price for all residential properties in Waterloo Region was $821,828. This represents a 5.6 % ↓ compared to May 2022 and a 3.1 % ↑ compared to April 2023. Last month, 1,264 new listings were added to the MLS® System, reflecting a decrease of 32.6 % compared to May of last year and an 11.8 % decrease compared to the previous ten-year average for May. The total number of homes available for sale in active status at the end of May was 900, marking a decrease of 24.9 % compared to May of last year and a significant 41.0 % below the previous ten-year average of 1,524 listings for May. The number of months of inventory has ↑d by 13.3 % compared to May of last year, but it remains historically low at 1.7 months. This metric represents the length of time it would take to sell off current inventories at the current sales rate. In terms of speed, the average number of days to sell in May was 15, slightly higher than the 11 days recorded in May 2022 but consistent with the previous 5-year average of 16 days. As we continue to navigate the ever-changing real estate landscape, we want you to know that we are dedicated to keeping you informed. Our goal is to empower you with the knowledge and resources necessary, so that you can make confident decisions in this dynamic world of real estate. If you are thinking about making a move this season, or have questions about our current real estate market, contact us today-we’d love to hear from you! |
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While shopping for a used car, you come across one that catches your eye. During price negotiations, the seller becomes sentimental, recalling fond memories of family picnics, soccer games, and exciting adventures in the vehicle. As a result, he demands a higher price, unwilling to part with the car and its treasured memories for anything less. |
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Would you be willing to pay extra for sentimental value? Most likely not. Surprisingly, the same scenario often unfolds when selling a house. Homeowners frequently develop an emotional connection to their property. Witnessing their home being treated as a mere commodity, with potential buyers discussing furniture placement in the living room, can be distressing. Emotions can obstruct the selling process, leading some sellers to stand firm on a high price even when they receive a reasonable offer that aligns with market value. After all, as the saying goes, "Home is where the heart is." Therefore, when the time comes to sell your property, reflect on the cherished memories you'll take with you and prioritize securing the best price based on current market conditions. |
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If you're contemplating selling your home, particularly within the next year, you may find yourself pondering a crucial question: "Should I sell now, or should I wait for more favourable market conditions?" |
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The answer is straightforward. Your decision to sell should be based on your own needs and desires, rather than speculating about future market conditions. Attempting to predict the real estate market in the coming months is exceedingly challenging. It could become a buyer's market, a seller's market, a stagnant market, or even a highly competitive market. Who can say for sure? It's akin to trying to forecast the weather precisely on the same day next year. Moreover, if you're also planning to purchase a new home, market conditions become less significant. Selling in a seller's market and receiving a high price for your current home would likely entail paying a seller's market price for your new property. In most cases, the "right" time to sell is when you're prepared to take the leap and make a move. |
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Buying a home is more complex than purchasing a product off a shelf. It requires more than paying the listed price and claiming ownership. In a competitive market, you can't simply declare, "I'll take it!" You must present an enticing offer when buying a home. |
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Your offer, naturally, should include the proposed price, which may or may not align with the "price tag" or asking price. However, for a successful offer, additional elements are necessary. For instance, winning offers often demonstrate arranged and appropriate financing, instilling confidence in the seller that you can afford the home and that the deal won't falter due to mortgage issues. Furthermore, you might need to include conditions, such as making the offer contingent upon selling your current home. Care must be taken here, as conditions could safeguard your interests but potentially deter the seller from accepting your offer. Negotiation holds paramount importance in the buying process. Even without competing offers, discussions regarding price, conditions, closing dates, and more are likely to arise. Skillful negotiation is crucial to secure the home not only at the best terms but also at the lowest price possible. Real estate negotiation demands knowledge of the local market, honed negotiating abilities, and experience. Whether you're selling your home, buying a new one, or both, remember the significant role negotiation plays in achieving your desired outcomes. |
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