Home prices in Waterloo Region took a dramatic dip in August as the number of houses changing hands also dropped, according to the Waterloo Region Association of Realtors.
For the second consecutive month, prices dropped in the area as the average home sold for $761,377, which is down 4.4 per cent from July, when that number was $795,778.
It has been a sharp drop over the past two months as the average sales price was $839,869 in June.
The average cost of a detached home in July fell to $884,390, 3.9 per cent below the total in July but 3.9 per cent higher than a year earlier.
“Home buyers had the advantage of strong listing activity in August, which helped to provide a little more choice and temper prices,” WRAR president Megan Bell stated.
“But affordability remains a top concern for many who are looking to get into the market and finding it a challenge to resolve what they want with what they can afford.”
The realtors say only 568 homes were sold in August, which is 23.5 per cent below the previous five-year average.
“For the first time in a decade we saw August’s home sales slip under the 600-unit mark,” Bell said. “Home sales were softer than normal last month, which is not surprising given the current borrowing environment.”
A flood of new homes hit the market last month, with 1,025 new listings added to the system in the area in August, which is up 9.7 per cent compared with a year earlier, according to WRAR’s monthly numbers release.
The condo market appears to have played a big part in the increased inventory as inventory increased by 35.3 per cent last month.
“Right now, buyers may find it easier to get into a condominium, which can be a great choice for both first time buyers, and anyone looking for a lifestyle change,” Bell said.
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