Waterloo Region is Experiencing a Brisk Spring Market!
While the volume of sales activity is lower compared to last year’s market and compared to the five-year average for March, for most home types, average sale prices are rising.
Buyer demand is strong so far in 2024, as would-be homeowners try and get ahead of the inevitable increase in competition and price that will certainly occur once interest rates begin to decrease – but there has not been a matching level of increase in listing activity. This is resulting in frequent multiple offer situations, particularly in the mid-range freehold segment. Despite these competitive scenarios, sales prices generally remain within reasonable bounds, at least so far this spring. Unlike the frenzied buying periods witnessed during the peak of the pandemic, we’re not so often seeing “sold prices” that are way out of line with comparable sales.
On April 10, Bank of Canada held their rate steady at 5% – and this was certainly widely predicted so there are no surprises there.
Looking ahead it remains difficult to know exactly when the Bank of Canada will lower rates. Certainly, the Bank of Canada has maintained cautious messaging on this, a strategy aimed at tempering excessive spending in order to keep inflation in check. It is likely that rates will begin to decrease in mid-2024 – but this does depend on a host of economic factors.
All in all, the market remains on stable footing. For those who have been waiting for the right time to move, this is welcome news and now is a good time to explore your options. It is perhaps a particularly opportune time for those considering selling a family home and looking to downsize to a condo apartment, as the former asset class has been appreciating in recent months while the latter asset class has been more steady on price.
As always, we are here to provide expert advice and personalized insights tailored to your specific circumstances. Feel free to reach out at any time to schedule a call or an in-person appointment.
• Read our previous Market Updates
