Good Morning,

We hope this email finds you doing well, and that your new year is off to a great start!! It’s time for a fresh start, and we have high hopes for the 2024 real estate market 😊

 

In 2023, home sales in the Waterloo Region, recorded through the MLS® System of WRAR, totalled 6,623, marking a 14.8% drop from 2022 and a 23.2% fall from the five-year average.

 

In December, 285 homes were sold, showing a 0.7% decrease from December 2022 and a 25.6% decline from the five-year average for the month.

For the second consecutive year, higher interest rates have significantly impacted Waterloo Region's housing market, leading to the lowest annual sales in over 20 years. This trend, mirrored in December's slowdown, marks the first time since 2000 that annual sales in the region have fallen below 7,000 units.

In December, the average sale price for residential properties in Waterloo Region was $740,697, up 2.8% from December 2022 but down 2.1% from November 2023.

 

On a year-to-date basis, the average sale price for all residential properties in Waterloo Region decreased 7.7 % to $786,033 compared to 2022.

Total residential sales in December included:

The housing market in Waterloo Region is slowing, mirroring broader economic trends. Last month, there were 287 new listings, a decrease of 6.2% from December last year and 17.9% below the ten-year average for December. Homes took an average of 30 days to sell in December, longer than the 25 days in December 2022 and the five-year average of 23 days. Throughout 2023, the average selling time was 19 days, compared to 14 days in 2022 and a five-year average of 18 days.

 

The dream of homeownership is becoming increasingly challenging as housing accessibility declines in our region. This situation underscores the critical necessity to not just construct more homes but also to create a variety of housing solutions that cater to different financial capabilities, ensuring every individual has access to a suitable and affordable home.

 

In the financial landscape, the Bank of Canada is poised to make an important announcement regarding the overnight rate target on January 24, 2024. This will coincide with the release of a detailed economic and inflation outlook in the Monetary Policy Report, which will also address possible risks. With expectations of potential rate cuts by the Bank of Canada as the year unfolds, a recent report predicts a surge in Canadian home prices in the near future, possibly revitalizing the housing market.

 

For insights into the current real estate market or for guidance on buying or selling a home, please feel free to reach out to us. We’d love to hear from you!

An agent open house provides numerous advantages for sellers in the real estate market, including increased exposure as real estate agents preview the property and recommend it to clients. This exposure can lead to more potential buyers. Additionally, attending agents offer valuable feedback on pricing, presentation, and market appeal, facilitating necessary improvements. 

 

The open house serves as a networking platform, enabling the listing agent to connect with other real estate professionals, potentially leading to additional exposure through word of mouth or collaboration. Targeted marketing to real estate professionals ensures visibility among potential buyers seeking similar properties. Moreover, agents bring qualified buyer interest, increasing the likelihood of finding a suitable buyer sooner. Consolidating showings into a specific time frame during the open house is more efficient for the seller, especially if the property is still occupied. This approach also differentiates the property in the market, signalling a proactive and invested approach to marketing. 

 

Ultimately, the increased exposure, targeted marketing, and potential for qualified buyers contribute to a faster sale, reducing time on the market. However, it's essential to recognize that agent open houses may not be suitable for every property or market, necessitating discussions with the real estate agent to determine the most effective marketing strategies for a specific situation.

Imagine you’ve been waiting for the right moment to sell your home and you’re finally ready to list it. But, just as you’re about to put up the sign, you notice that a few other FOR SALE signs have unexpectedly popped up in the neighbourhood.

 

Oh no! Now there are competing listings. Does that mean you should put your plan to sell your property on hold?

 

Not necessarily.

 

Just because comparable homes are for sale in the area doesn’t mean it’s not a good time to make your move. In fact, even if there is a sharp increase in local listings, active buyers might still outnumber properties available. In that scenario, you’d likely get several interested buyers. And, even if it’s a buyer’s market, this might still be the ideal time to sell, especially if your home has desirable features buyers want. You may even have an advantage over other listings on the market.

 

In addition, a large part of a successful sale is in how a property is marketed and promoted. With effective marketing, your home is more likely to be noticed by the right type of buyers... buyers who are actively looking for a property like yours.

 

So, waiting for the perfect moment to sell your home rarely makes sense. In most cases, the best time to list is now.

Chances are, you’ve heard the expression, “Your home is your biggest investment.” For most homeowners, that’s true. So, when you’re shopping for a new home, it’s important to consider the financial opportunity of any purchase. Ideally, you want a home that is likely to increase in value over time.

 

In other words, you want a home with a strong potential return on investment.

 

But dollars aren’t the only type of return you should look for in a new home. Real estate is unique in that the “emotional” return is just as important as the financial return — and, in some cases, even more so.

 

Say, for example, you’re thinking of moving to a neighbourhood that is closer to work. In fact, you’ll cut your commuting time by an hour each day. Financially, that return on investment means little beyond some savings on gas. However, the emotional payoff can be very high, especially when you consider what you can do with that extra hour each day. Imagine what it would mean to spend more time with your kids or workout out at the gym more often.

 

So, considering the emotional return on investment when you’re moving is essential. It has a huge impact on your lifestyle and your enjoyment of the property.

 

How do you factor that in when selling your property and searching for your next dream home?

 

When you see a listed home you like, make a list of all the emotional benefits of living there. That list might include having a park nearby, living closer to friends or family, having a home office that isn’t the kitchen table, having more space to accommodate a growing family, and so forth.

 

Then, factor that list into your decision of whether or not to buy.