We hope this email finds you doing well, and that you’ve been enjoying a fantastic summer😊
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 colors. The pleasant fall weather also makes it ideal for showcasing properties with pools, landscaping, and gardens before winter sets in.
If you’re thinking about selling or have any questions about the fall market, we’re here to help. Don’t hesitate to reach out!
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!
One of the most frequently asked questions we receive is, "When is the best time to sell?" Our answer is straightforward: the best time to sell is when it’s right for you. To help determine if now is the right moment, consider these 4 key questions:
1. How does it feel? Does your home feel too cramped or too spacious? Your lifestyle and needs have likely evolved since you first moved in. Perhaps your family has grown, or you’re now working from home more often. Reflect on whether your current home still meets your needs and supports your daily activities comfortably. If not, it might be time to explore options that better align with your current lifestyle.
2. How is my home equity? Assessing your home equity is crucial. If you’ve built significant equity, selling now could be financially advantageous. Take the time to review your mortgage balance, current market value of your home, and potential sale price. Don’t forget to factor in real estate commissions, closing costs, and any necessary repairs or updates. Understanding your financial position will help you make an informed decision and maximize your return.
3. How is the maintenance? Is managing your home becoming overwhelming? If maintaining your home has become a source of stress or if you're struggling with upkeep tasks, it may be worth considering a property with lower maintenance demands. Downsizing to a smaller home or one with fewer responsibilities could ease the burden and provide a more manageable living situation.
4. Have I recently experienced a major life change? Major life events, such as a new job, retirement, or changes in family dynamics, can significantly impact your housing needs. If your recent life changes have altered your daily routines or long-term goals, reassessing your housing situation is crucial. For example, a new job might require a shorter commute, or retirement might open up opportunities for relocation. Reflect on how these changes influence your living situation and whether a new home might better accommodate your evolving needs.
As you contemplate these questions, remember that the decision to sell is a personal one and should align with your unique circumstances and goals. If these considerations have prompted thoughts about your next steps, we’re here to offer support. Our team is ready to provide guidance, answer your questions, and assist you in making a well-informed decision. Let’s work together to find the right timing and approach for your home sale, ensuring a smooth transition to your next chapter.
