Housing prices continued to fall in Waterloo Region in August as interest rates continue to cool the housing market.
The Waterloo Region Association of Realtors (WRAR) released its August home sales report on Wednesday. In total, 659 residential homes were sold last month, a decrease of 8.1 per cent compared to last year and 11.2 per cent below the previous five-year average for August.
The biggest decrease in sales were in townhouses (24 per cent) and condominiums (26.1 per cent) while semi-detached homes increased by 10.9 per cent.
“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,” said Megan Bell, president of WRAR, in a press release. “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.”
The average sale price in Waterloo Region was $750,849, a decrease of 0.2 per cent from last month and 0.4 per cent decrease from last year. 933 new listings were added to the Multiple Listing Service (MLS) System for WRAR. The total number of houses available at the end of August was 1,003, an increase of 188.3 per cent from last year, but lower than the 10-year average of 1,593.
Following the Bank of Canada's interest rate hike of .75 per cent to 3.25 per cent, Bell said it is "discouraging news for borrowers" as it affects their purchasing power. However, she signalled that it may not all be bad news for those looking for a home.
"We see signs that the market is moving towards more buyer-friendly conditions," said Bell. "Realtors are reporting fewer multiple offers resulting in final sale prices being closer to the asking price or with more conditions accompanying offers. Even so, with inventory still very tight, Waterloo region remains a seller’s market.”
The average number of days that a house was on the market was 22 days, on par with the previous five-year average.
