January 2024 – Navigating the Waterloo Region Real Estate Market

Impact of High Interest Rates on Real Estate Plans

High interest rates have caused many homebuyers and sellers to push pause on their real estate plans over the last six months, significantly curtailing overall activity in housing markets in Waterloo Region, and across the country. However, as Canadians continue to adjust to higher borrowing costs, and the first anticipated rate cut by the Bank of Canada nears, a brisk spring market is on the horizon.

Anticipated Changes in Borrowing Costs and the Role of the Bank of Canada

“I believe the narrative suggesting that the housing market will rebound only when the Bank of Canada lowers rates misses the mark,” said Phil Soper, president and CEO of Royal LePage. “The recovery will begin when consumers have confidence the home they buy today will not be worth less tomorrow. We see that tipping point occurring in the first quarter, before the highly anticipated easing of the Bank of Canada’s key lending rate.”

Consumer Confidence as a Catalyst for Market Recovery

In Waterloo Region, increased buyer confidence, particularly in the modestly priced freehold property market, has been evident in the past several weeks, even in December which is normally a quiet month in real estate.

Positive Trends in Waterloo Region’s Real Estate Market

While it is hard to know exactly what 2024 will bring, all signs point to an active market.

December 2023 Real Estate Statistics for Waterloo Region

In December, the average sale price for all residential properties in Waterloo Region was $740,697. This represents a 2.8 per cent increase compared to December 2022 and a 2.1 per cent decrease compared to November 2023.

• The average price of a detached home was $848,151. This represents a 2.6 per cent increase from December 2022 and a decrease of 4.7 per cent compared to November 2023.
• The average sale price for a townhouse was $617,023. This represents a 0.8 per cent increase from December 2022 and an increase of 1.2 per cent compared to November 2023.
• The average sale price for an apartment-style condominium was $490,816. This represents a 5.0 per cent increase from December 2022 and an increase of 9.0 per cent compared to November 2023.
• The average sale price for a semi was $613,283. This represents a decrease of 0.5 per cent compared to December 2022 and a decrease of 0.5 per cent compared to November 2023.

More real estate updates: Market Updates