The real estate market as we’ve come to know it over the past couple of years is experiencing a shift.
For many, the change is welcome.
“April is usually one of the busiest months of the year for real estate sales, but something was a little different this year. Typically, we see progressively more listings and sales each month from January until May, and then things taper off in June and begin to slow down,” says Greig Turvey, Sales Representative, GoWylde Team/ReMax. “In April, there was the predictable 13% increase in new listings compared to March, however the number of sales actually dropped 15%.”
This is something that had been on the agent’s radar for a while, as he has been noting the increase in the number of homes that don’t sell and that are taken off the market.
For the second straight month in a row, prices in most housing categories have dropped significantly.
The average sale price in Kitchener/Waterloo dropped 5% compared to March of 2022 and is down 10% since the peak in February—for the average home, this equates to about a $100,000 difference.
Of course, other factors have come into play in recent months. “The effects of increased interest rates, uncertainty, war, and talks of a recession have definitely had an impact on buyers’ confidence in the market, and many people who were becoming discouraged from losing out on property after property a few months ago are now taking a “wait and see” approach,” says Turvey.
The average sale price for detached houses in Kitchener/Waterloo in April was $1,050,180, for attached houses it was $767,624 and for condos and apartments, $600,881.
“Has the market bottomed out? Nobody knows for sure, but my gut tells me there’s a bit more correcting left to do. Inventory is going to continue to increase through the Spring, and by Summer I think that buyers will actually have a lot to choose from,” he says. “We need to acknowledge that even though months of inventory doubled, it’s still relatively low at just 1.2, which indicates a strong sellers’ market. But we really haven’t seen these levels since before COVID.”
Says Turvey, “My advice to sellers is get your house on the market ASAP. My advice to buyers is to be very cautious when purchasing. There are many deals to be found in this market, but don’t get carried away paying yesterday’s price for the shiny new listing.”
Stay up to date with the latest market trends in Kitchener and Waterloo with real estate agents Brad Wylde and Greig Turvey. Visit the GoWylde Team or call 519-826-7109 for more information.