February’s Real Estate Market Statistics
The real estate market in Waterloo Region experienced a significant decline in sales volume in February 2023, with only 439 homes sold, representing a 45.0% decrease compared to the previous year and 31.5% below the previous 5-year average. Affordability continued to be a top concern for prospective buyers due to increased borrowing costs, a shortage of housing supply, and strong demand. Despite this, home prices remained stable for the past several months.
The average sale price for all residential properties in Waterloo Region in February was $758,698, a 25.1% decrease from the previous year. The average price of a detached home was $877,884, a 26.0% decrease from the previous year. There were 671 new listings added to the MLS® System, a decrease of 37.1% compared to the previous year, and the total number of homes available for sale in active status at the end of February was 692, an increase of 75.2% compared to the previous year. The number of months of inventory is up 140.0% compared to the previous year, but still historically low at 1.2 months, and the average number of days to sell in February was 20.
Shelter Costs are Only 8% Higher for Homeowners vs Renters in Waterloo
On average Canadian homeowners spend 24% more than renters on monthly shelter costs. Shelter costs are only 8% higher for homeowners vs renters in Waterloo. In fact, Kitchener-Waterloo-Cambridge is fourth easiest market to go from renter to homeowner.
Canadian Mortgage Delinquencies Are Near Record Lows
It’s great to hear that Canadian mortgage delinquencies are showing a significant decline, despite the potential rise in mortgage costs. A delinquency rate of 0.18% is indeed very low, and it’s a positive sign that Canadian homeowners are able to manage their mortgage payments effectively.
Homeowners have a range of options available to them if they are struggling to make their mortgage payments. Selling the home or refinancing for a lower payment can be effective strategies for avoiding default and foreclosure.
Spring Real Estate Market Forecast – Unpredictable.
It’s true that the real estate market can be unpredictable, and there are a variety of factors that can impact home sales and prices. The potential for a looming recession, rising interest rates, and low home sales are all factors that could contribute to a more challenging market for buyers and sellers.
However, there are also reasons for optimism, including a tight housing market and a growing population that requires housing. As the year progresses, we may see more would-be homebuyers enter the market, especially if interest rates remain relatively low and the economy remains strong.
What Is The Expected Average Home Price For 2023?
It’s important to note that while the 1% decline in average housing prices predicted by the fourth quarter of 2023 may not seem like a significant drop, it can still have an impact on the market, particularly in regions with higher prices. Additionally, while rising interest rates and rental prices may make it difficult for some to afford housing, a decline in prices could still make it more affordable for others.
The ban on non-Canadians purchasing homes in Canada for two years starting in January 2023 could also impact the market, particularly in regions with high demand from international buyers. This policy is intended to improve affordability for Canadian citizens, but its impact on the overall housing market remains to be seen.