Kitchener-Waterloo housing prices drop for 2nd straight month

File: Home for sale sign. Jonathan Hayward, THE CANADIAN PRESS

After reaching record heights in February, the average cost of buying a home in the area fell for the second straight month, according to the Kitchener-Waterloo Association of Realtors (KWAR).

The average cost of purchasing a house in April was $907,205, which is down around 13 per cent from March’s average cost of $960,181. The Kitchener-Waterloo market saw a record high of $1,007,109.

Read more: 63% of Canadian non-owners have ‘given up’ on ever buying a home: Ipsos

Read next: West Edmonton Mall closes Mindbender indoor roller-coaster

Detached homes played a large part in the dip as the average fell to $1,060,992, which is a drop of almost $200,000 over the past two months.

“Last month introduced a small measure of relief to the market,” KWAR president Megan Bell stated.

“While the number of sales remains strong, and sale prices continue to turn out robust annual gains, we’re seeing fewer multiple offers and more conditions on offers making their way back into the market.”

Story continues below advertisement
Click to play video: 'Speculation by Canadians ‘absolutely’ playing role in red-hot home prices: Expert'
Speculation by Canadians ‘absolutely’ playing role in red-hot home prices: Expert

While the drop over the past two months may provide some relief to potential homebuyers, the prices are still well above April 2021, when the average home in the area sold for $757,906, while two years ago that number was $568,738.

Read more: Trudeau offers no timetable on promised homebuyers rights bill as prices soar

Read next: Marilyn Manson accused of raping underage girl in horrific new lawsuit

“The trajectory the market was on was simply not sustainable, however, I want to emphasize it would be premature to draw any conclusions on just a single month’s activity. The housing market in Waterloo Region is still very much a sellers’ market, but sellers may need to adjust their expectations,” Bell said.

“We noticed this shift after the Bank of Canada’s recent rate increase reinforcing that it has been cheap money empowering too many buyers to chase after too few listings driving the market rather than anything else.”


Sponsored content