07/05/2022
The price of a typical home in Canada has increased 57% since 2020, according to BMO Capital Markets, as a historically low shortage of homes during the pandemic gave rise to intense competition and record-high sales prices. Now, however, following a series of interest rate hikes by the Bank of Canada, price growth has begun to slow in many markets, with some cities, including Kitchener-Waterloo, London, and Toronto, recently posting price declines month-over-month.
The local real estate market set records in February of this year when 802 houses sold in the region for a median price of $958,206. In the months that followed, a steady decline in prices has been experienced across the region, bringing the median sale price in June for a home in the Waterloo Region to $805,000. This number has remained steady over the past two months as has inventory, causing some to speculate as to whether we have achieved the “new normal”, too soon to tell in our opinion. While this may sound like a lot of doom and gloom, rest assured the sky is not falling and this article from the Financial Post shares why they don't expect us to be reliving 2008.
Properties that are priced appropriately are still selling, though Buyers are bringing forward increasingly less aggressive offers, many now including conditions. A prudent seller will put less weight on the factoring in of sold prices and take a hard look at the competition when creating their pricing strategy these days. Relying on sold prices in a teetering or down trending market will have you chasing the bottom. In a declining market, the first home to reposition sells for more than those who follow. You need to be out in front.
Breadcrumb Trail Links Executive Summary Executive Posthaste: Why this housing slump won't be as bad as 2008 But it could still shave 2% off Canada's GDP over next couple of years, says economist Author of the article: Pamela Heaven Publishing date: Jul 05, 2022 • Last Updated 4 hours ago • 5 mi...