Wednesday, July 19, 2017

What the Shift in Waterloo Region’s Real Estate Market Means

After about a year and a half of what could only be classified as an extreme seller’s market, you have probably noticed that the tide has turned, and the market has been left a bit more balanced. What does this mean, and why did this happen?

  •  Inventory plays a large factor in this - the more houses available for sale, the more it gives buyers an advantage in the market. According to a recent report by the Canadian Real Estate Association (CREA), “there were 5.1 months of inventory on a national basis at the end of June 2017 – up a full month from where the measure stood in March and the highest level since January 2015”. Real estate, like any market, is all about supply and demand - as supply increases, it helps to outweigh the current demand. 
  • An increase in interest rates, plus a new Ontario housing policy (introduced in late April) have prompted home buyers to carefully consider their next steps. Policy changes include foreign taxes and taxes for properties left vacant, to name a few. 
  • This shift means that buyers are feeling less pressure to make quick purchases, and they want to take their time reviewing the options available, and make their decision based on the house that best fits their criteria. If you are selling your home, this will mean that you will want to ensure that your home appeals to the largest number of buyers possible, allowing you to stand out against your competition (i.e. other homes for sale in your neighbourhood). 
  • Conditional offers are back! During the seller’s market selling spree, it was uncommon for a buyer to place any conditions on their presented offer. A conditional offer means that the buyer has placed one or more conditions on their offer to purchase your home, and these must be met before they will finalize the sale. This may include (but is not limited to) a home inspection, financing, and/or sale of the buyer’s property. 
One thing that remains from the seller’s market is higher home values, and this is something that you can certainly cash in on. At this time, it is difficult to predict whether or not these prices will hold, or whether you will see a dip, but if you need to purchase a new home within Waterloo Region, you will likely enjoy the buying process much more now. That said, the only way to properly evaluate your home’s current value is to speak to a qualified real estate agent who will assess the various factors that affect the price of your home, including the home’s specific features, location, local amenities, comparables, and more.

Get the full story by downloading your FREE copy of our report "Selling Your Home in Waterloo Region - A Homeowner's Guide (Vol 2)".

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