Home prices, sales dip in February in Waterloo Region

The number of homes sold in southwestern Ontario’s Waterloo Region remained low in February while prices also took a slight dip, according to the Waterloo Association of Realtors.

In a release, the realtors said that the average sale price had fallen to $758,698 last month, which is 0.6 per cent less than they announced in January.

It is also 25.1 per cent less than a year ago, when the average price for a home had risen to $1,007,109. The number has steadily dropped since that point but realtors say it is now starting to stabilize.

“Limited supply and the small number of listings coming to the market continues to be a trend within the region,” WRAR president Megan Bell said.

“There may be some hesitation for those considering selling their property due to decreased reported sale prices; however, with demand continuing to outpace supply and prices stabilizing, sellers are in a healthy position to make their move.”

A total of 439 homes changed hands last month, which includes condos, detached, semis and townhomes.

That is 45 per cent below a year earlier when the market was at its peak before interest rates began to climb.

“Once again, we experienced record-low listing sales in February,” Bell said. “Increased borrowing costs, coupled with a shortage of housing supply and strong demand, have put a strain on prospective buyers as affordability continues to be a top concern; however, home prices have remained stable for the past several months.”

While inventory is historically low, it has begun to climb in the area as it is now up to 1.2 months. This number shows how long it would take to sell off the current supply at the current sales rate. On average it is now taking 20 days to sell a home, according to the realtors’ monthly update.