- Year-over-year and quarterly trends: Real estate prices in Waterloo Region have decreased on a year-over-year basis but have increased on a quarterly basis, according to the Royal LePage House Price Survey.
- Average home cost: The average cost of buying a home in the area was approximately $799,000, as reported by the survey.
- Interest rate hike: The Bank of Canada recently raised interest rates by 25 basis points, leading to higher borrowing costs not seen in two decades. It is uncertain whether this will be the last rate hike, as some experts predict more increases in the fall.
- Impact on the market: A local broker predicts that rising interest rates may slow the market for first-time buyers but may not significantly affect those looking to upgrade. While sales might slow down, the broker does not anticipate a drastic drop in prices.
- Market balance: The Kitchener-Waterloo housing market has become more balanced with increased inventory levels and a slight slowdown in sales over the last few months.
- National market trends: Across Canada, the aggregate sales price dropped by 0.7 percent year over year to $809,200 in the second quarter. However, prices were up compared to the first quarter.
- Revised forecast: Royal LePage has revised its forecast for the aggregate price of a home to increase by 8.5 percent nationally in the fourth quarter of 2023. This adjustment is based on stronger-than-expected activity and price appreciation during the first half of 2023.
- Impact of rising interest rates: Rising interest rates have caused some individuals to adjust their expectations, potentially opting for smaller houses or different locations. However, they are still interested in buying.
- Long-term outlook: Royal LePage does not foresee a drop in prices in the long term due to fewer housing starts and record levels of immigration to Canada.
Written ByKeith Marshall
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