As we mentioned in our March 2018 housing report, Kitchener-Waterloo market is still attractive for sellers, and a competitive for buyers. Although the power is shifting toward home buyers again. And here is why?
Stress test on mortgages introduced by the government in the beginning of 2018 is hard on consumers. Rising home prices combined with higher borrowing costs have pushed home ownership out of reach for many first-time buyers. And this group of homebuyers is like a locomotive on Canadian real estate market in general. Toronto’s housing market has slowed considerably at the start of this year first of all because first-time buyers have been showing all the signs of fatigue.
April 18, 2018 Bank of Canada maintained its target for the overnight rate at the same 1 ¼ per cent due to slower economic growth in the first quarter, and the way how housing market responded to new mortgage guidelines. Probably, the government decided to take a break and see the impact of the new mortgage rules.
Situation on Kitchener-Waterloo real estate market is still balanced due to more affordable housing types. Waterloo region is still seen as one of the more economical places to live, this is a reason why we have a good number of homebuyers from other areas, first of all GTA. While 2018 won’t be quite as hectic as 2017, the market is going to be demanding in our area.
Another characteristic of real estate in K-W – low home inventory. It actually reached a crisis stage. According to KWAR (Kitchener-Waterloo Association of Realtors) president, “Kitchener-Waterloo continues to fall short in terms of overall listings through the MLS”. With far fewer houses coming to the market we had a two months inventory in the end of March. But we would caution home owners who think of selling – don’t cut corners preparing your home for sale. Keep in mind – to ensure a speedy and lucrative sale, you need to make sure the property stands out.
If you are thinking to move and decide you’d like some professional expertise, we would love to hear from you. We, realtors, have our fingers on the pulse of the market.