Housing prices have dropped for the fourth consecutive month in the area in June, according to the Kitchener-Waterloo Association of Realtors.
After the average sale price reached a peak of $1,007,109 in February, that number slid down to $791,674 in June, the realtors say.
While that number may bring a sigh of relief for buyers and a sigh of grief for sellers, the average sale price is still 4.2 per cent above where it stood a year earlier, when it clocked in at $759,115.
The average price of detached homes has also continued to drop hand in hand with the average price as it now sits at $920,349, the first time in several months that it has been reported to be less than $1 million by KWAR.
“For the fourth consecutive month we’re seeing home prices moderate as the number of properties available for sale has steadily increased,” KWAR president Megan Bell stated.
“In June the average price of a detached home has levelled off to where it was this time last year.”
The number of houses changing hands has also slowed in the area as the realtors reported that 561 were sold in the Kitchener-Waterloo market in June, which is 24 per cent less than a year earlier when 740 homes were purchased.
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Bell believes that a return to summer normalcy may be playing a part in the slowing market.
“This time last year, sales were going through the roof,” Bell said.
“The home buying scene is a little different this year with folks finally taking their postponed trips, attending weddings, and generally catching up on the many missed occasions of the past two years.”
A lack of scarcity and rising interest rates may also be part of the issue as the Bank of Canada raised them again on June 1 and is expected to do so again in July.
KWAR says 1,285 new listings were created last month, which is an increase of 49.2 per cent over a year earlier.
At the same time, the number of months of inventory is also starting to rise as it now sits at 1.8 months, which is the highest it has been since September of 2019.
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