The average cost of buying a home in Waterloo Region took a slight dip in August, marking a sixth straight month in which the price dipped in the area, according to local realtors.
The Waterloo Region Association of Realtors says that last month, homes in the area sold for $750,849, which is just a 0.4-per cent decrease from July when the average sale price was $752,301.
This represents welcome news to buyers who saw average sales prices reach as high as $1,007,109 back in February.
While the average cost of buying a home in the area fell, the realtors say that the price of detached homes went in the other direction, increasing from $842,241 in July to $851,654. Still, this is well below the $1,007,109 which was reported in February.
The realtors’ association says that they are starting to see the scene shift from a buyer’s market to a seller’s market as interest rates continue to climb. The Bank of Canada announced another rate hike on Wednesday.
“Today’s announcement by the Bank of Canada to increase its policy rate by 75 basis points to 3.25 per cent is discouraging news for borrowers as it affects their purchasing power,” WRAR president Megan Bell stated.
“However, we see signs that the market is moving towards more buyer-friendly conditions. Realtors are reporting fewer multiple offers resulting in final sale prices being closer to the asking price or with more conditions accompanying offers.”
She said that there remains a lack of inventory in the area which is keeping prices higher.
That said, at the end of August, there were more than 1,000 active listings in the area, which is an increase of 188.2 per cent over the previous August but 31.8 per cent below the previous 10-year average.
The realtors also noted that 659 homes were sold in the area in August, which is a down 8.1 per cent from a year earlier and 11.2 per cent down from the previous five-year average.
“While the number of homes sold in August was down on a year-over-year basis they were up almost 19 per cent compared to July,” says Megan Bell, president of WRAR.
“The decline was most pronounced in the apartment-style condo and townhouse categories which could indicate that rising borrowing costs are having a greater impact on first-time buyers and those looking for more affordable options.”