Waterloo Region Real Estate Market Cools in June
The local real estate market in Waterloo Region continued to experience a cooling trend in June, with both sales and prices showing a decline, according to the latest report from the newly formed Cornerstone Association of Realtors. This group, resulting from a merger of the Waterloo Region Association of Realtors with realtors from Mississauga, Hamilton, Simcoe County, Burlington, and other areas, has pledged to continue providing monthly insights into the local market.
In June, the Waterloo Region saw a significant drop in home sales, with 674 homes changing hands. This represents a 13.7% decrease from June 2023 and is 24.8% below the 10-year average for June. The reduced number of transactions highlights a continued slow period for the area’s real estate market.
Home prices also saw a notable decline. The average home sold for $790,945 in June, which is 3.3% lower than May’s average of $818,507 and 5.8% below the average price from June of last year. This decrease in prices indicates a shift towards a buyer’s market.
Christal Moura, spokesperson for Cornerstone, commented on the current market conditions: “The Waterloo Region housing market is cooling, with a year-over-year decrease in home sales in June, while the number of homes for sale is rising, offering more inventory to buyers.”
Despite the slowdown in sales, there has been a surge in the number of properties hitting the market. June saw 1,431 new listings, a 7.6% increase year-over-year and a 10.6% rise above the previous 10-year average. By the end of the month, there were 1,790 homes listed for sale, which is 75.5% more than last June and 31.9% above the 10-year average.
With the drop in prices and an increase in available inventory, the market has become more favorable for buyers. Moura noted, “The silver lining is this presents a more favorable pricing environment for buyers, with more choices, greater flexibility, and the potential to negotiate better deals.”
The month ended with 3.3 months’ supply of homes available, indicating the time it would take to sell all listed properties at the current sales pace. This figure is buoyed by a particularly slow condo market, which had 6.5 months’ worth of inventory available at the end of June.
The real estate market in Waterloo Region is experiencing a cooling trend, with declining sales and prices, alongside a rising number of listings. This shift creates a more advantageous environment for buyers, offering more options and better opportunities to negotiate. The Cornerstone Association of Realtors will continue to monitor and report on these trends, providing valuable insights into the evolving market conditions.
