Waterloo Region Sees Strong Demand for Detached Homes Amid Cooler Residential Sales in August
“Despite a cooling market, detached homes continue to see strong demand, reflected in a 6.0 percent increase in sales year-over-year,” says Christal Moura, spokesperson for the Waterloo Region market area. “With home prices showing stability in recent months and interest rates decreasing, we saw some home buyers finally come out from the wings to take advantage of the summer slowdown to seek out specific property types, like single-family homes.”
Total residential sales in August included 335 detached homes (up 6.0 per cent from August 2023), and 103 townhouses (down 22.6 per cent). Sales also included 60 condominium units (down 18.9 per cent) and 40 semi-detached homes (down 11.1 per cent).
In August, the average sale price for all residential properties in Waterloo Region was $769,203. This represents a 1.1 per cent increase compared to August 2023 and a 1.7 per cent decrease compared to July 2024.
- The average price of a detached home was $889,085. This represents a 0.8 per cent increase from August 2023 and a decrease of 2.7 per cent compared to July 2024.
- The average sale price for a townhouse was $611,164. This represents a 7.5 per cent decrease from August 2023 and a decrease of 1.5 per cent compared to July 2024.
- The average sale price for an apartment-style condominium was $457,075. This represents a decrease of 5.8 per cent from August 2023 and a decrease of 7.7 per cent compared to July 2024.
- The average sale price for a semi was $654,070. This represents a decrease of 2.8 per cent compared to August 2023 and a decrease of 1.9 per cent compared to July 2024.
“While we’re seeing increased inventory and longer days on the market, this trend might not last if the Bank of Canada continues to lower interest rates. Buyers will need to weigh the benefits of potentially lower rates against the possibility of rising prices as demand picks up. I encourage potential home buyers to discuss their plans with a Realtor who can provide them with tailored advice,” says Moura.
There were 988 new listings added to the MLS® System in Waterloo Region last month, a decrease of 4.2 per cent compared to August last year and a 7.3 per cent increase compared to the previous ten-year average for August.
The total number of homes available for sale in active status at the end of August was 1,640 an increase of 49.2 per cent compared to August of last year and 40.1 per cent above the previous ten-year average of 1,308 listings for August.
The total inventory across the market increased by 50.0 percent, resulting in a 3.0-month supply of all property types by the end of August. Condominium apartments had the highest inventory, with 5.3 months’ supply, followed by townhouses with 3.5 months’ supply and detached homes with 2.5 months’ supply. The number of months of inventory represents the time it would take to sell off current inventories at the current sales rate.
The average time it took to sell a home in August was 25 days, which is three days longer than the previous month. In August 2023, it took 19 days for a home to sell, and the five-year average is 19 days.
Cornerstone emphasizes the importance of consulting a local REALTOR® when considering buying or selling property in the Waterloo Region. Their expertise can provide valuable insights into the current market conditions, enabling individuals to make well-informed decisions aligned with their goals and preferences.
There were 988 new listings added to the MLS® System in Waterloo Region last month, a decrease of 4.2 per cent compared to August last year and a 7.3 per cent increase compared to the previous ten-year average for August.
The total number of homes available for sale in active status at the end of August was 1,640 an increase of 49.2 per cent compared to August of last year and 40.1 per cent above the previous ten-year average of 1,308 listings for August.
The total inventory across the market increased by 50.0 percent, resulting in a 3.0-month supply of all property types by the end of August. Condominium apartments had the highest inventory, with 5.3 months’ supply, followed by townhouses with 3.5 months’ supply and detached homes with 2.5 months’ supply. The number of months of inventory represents the time it would take to sell off current inventories at the current sales rate.
The average time it took to sell a home in August was 25 days, which is three days longer than the previous month. In August 2023, it took 19 days for a home to sell, and the five-year average is 19 days.
Cornerstone emphasizes the importance of consulting a local REALTOR® when considering buying or selling property in the Waterloo Region. Their expertise can provide valuable insights into the current market conditions, enabling individuals to make well-informed decisions aligned with their goals and preferences.
How to Buy & Sell a Home at the Same Time
Navigating the buy-sell balancing act can be more than just stressful – after all, it’s a complex situation.
The challenge? Being able to secure a great price from the sale of your current home while securing a sweet deal on your new one. Not to mention lining up the timing so you don’t get stuck in housing limbo. Although it may seem overwhelming, it’s entirely achievable with the right strategy and a good agent!
Here are a few ways to make buying and selling simultaneously work for you and your family:
1) A Bridge Loan
This type of loan acts as a temporary financing solution, allowing you to borrow against your current home’s equity to fund the down payment on your new home.
When you would use it: Don’t want to move twice? Bridge loans give you the flexibility to buy a new home without selling your current home first.
However, you must qualify to hold your existing mortgage, the new mortgage, and the bridge loan. This option has additional costs.
When you would use it: Don’t want to move twice? Bridge loans give you the flexibility to buy a new home without selling your current home first.
However, you must qualify to hold your existing mortgage, the new mortgage, and the bridge loan. This option has additional costs.
2) A HELOC or Home Equity Loan
A home equity loan or line of credit (HELOC) lets you access the equity in your current home to help with the down payment or other costs associated with buying a new home.
When you would use it: You can use this money as your downpayment on the new home and pay it off once your current house sells.
This is another option where you must qualify to hold your existing mortgage, the new mortgage, and the home equity loan. There are additional costs associated with this option.
When you would use it: You can use this money as your downpayment on the new home and pay it off once your current house sells.
This is another option where you must qualify to hold your existing mortgage, the new mortgage, and the home equity loan. There are additional costs associated with this option.
3) A Home Sale Condition
While this option alleviates most of the stress of buying and selling simultaneously, sellers don't typically like the 'Sale of Buyer's Property' condition, as it presents a risk to their home sale. If you, as the buyer, don't end up selling your home and need to back out of the deal, the seller will be back to square one and will need to start the process again.
Although difficult in our current market, this option is not impossible! Look for homes that have been sitting for more than few weeks.
Although difficult in our current market, this option is not impossible! Look for homes that have been sitting for more than few weeks.
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