The past couple of years has proven that we are definitely in a Seller’s market. Many of those searching for the home of their dreams are disappointed to find out that the listings they make an offer on are quickly scooped up by someone else who either got there more quickly or offered a higher dollar.
“There has been a low listing inventory in the Kitchener-Waterloo areas, yet it was definitely not a reflection of how many people chose to sell their homes over the past year,” says Jason O’Keefe CEO of Real Home Experts, “The incredible demand from potential buyers made sure that most listings didn’t survive on the market for long.”
As interest rates increase and inflation sees many people begin tightening their pockets, more listings have stayed on the market for longer recently. In 2017, the median days on the market for a home in Waterloo was about 19 days, according to CREA.
In May 2022, the average number of days was 11 days. However, this number sat at 9 days in May 2021. A difference of only a few days, however, the demand for homes should continue to soften, leading to more availability in the months to come.
“Once we get through the expected busy months of the summer, it should be much easier to find, make an offer, and sign for a home within your budget come the fall,” says O’Keefe.
Fewer buyers could mean lower sale prices for residential homes
“We’re happy to see that CREA reported that the average residential sale in May 2022 was $875,194, a decrease of 3.5% from the month before,” says O’Keefe, “This can be due in part to there being fewer in-demand buyers for listings, which has softened the effects that bidding wars have had on listing prices.”
The London region has also seen an 8% decline in residential prices over the last three months.
“We’re really beginning to see the playing field of the market begin to even out as demand decreases and supply increases. It’s only natural that we will see prices decrease to match these changes,” adds O’Keefe, “as with most of the province, there are many factors that could be limiting potential buyers from closing in on a new home – the ever-increasing cost of living has definitely impacted the amount that Canadians have to spend – but for those that have their interest rates locked in and have the resources to buy, now is a good time to take advantage of fewer offers being made on properties.”
Real Home Experts covers the Waterloo, Kitchener, Guelph, Cambridge, Toronto, and London areas, and provides dedicated and professional real estate services for buyers, sellers, and investors from all walks of life. Their specialized team of experts knows exactly what it takes to sell a home and uses the best in digital marketing and programming that ensures your listing gets viewed by the maximum number of people and finds the right buyer in a short amount of time.
If you’re searching for a house you can raise a family in or a starter home, Real Home Experts also has the resources to advocate on your behalf, get you the best price, and into the right home as quickly as possible.
Find out what Real Home Experts currently has on the market online here.