What Could Cause Home Prices to Fall?
1. A fundamental change.
2. A behavioural change.
A fundamental change would be something like a traditional recession where job losses actually lead to a decline in household income, leaving some households unable to cover their mortgage expenses and forcing them to sell their home.
Behavioural changes are hard to predict.
What will make home buyers and sellers suddenly shift their beliefs about the housing market?
Best place to buy a home in Ontario has been revealed
A new report has revealed the best place in Ontario to buy a house.
Bancroft currently offers the best value, location and potential for appreciation over time.
The average selling price across all residential property types in 2020 was $292,733, which is 47% below the national average.
Kitchener-Waterloo is #22 on the list.
The three-year growth percentage in this region is 43%, meaning the average appreciation is $171,483.
What you need to know if you are planning to buy a home this summer
But if you’re planning on buying a home this summer, there are a few things you’ll want to keep in mind.
There are fewer choices—and higher competition.
Flexibility is a must.
Make the first offer your best offer.
What’s happening in Waterloo Region Rural Real Estate
June statistics of listings and sales
There are currently 37 homes listed for sale with the Kitchener-Waterloo Real Estate Board in the rural towns and townships.
The average list price for homes listed in Rural Waterloo Region is currently $1,124,128
How’s the Kitchener Waterloo Real Estate Market?
Volume of listings and sales down.
Days on market up
Kitchener Waterloo Real Estate Market Report
KW HOUSING MARKET SHOWS LITTLE SIGN OF COOLING
Number of Home Sales Set New June Record
There were 740 residential homes sold last monthThis is an increase of 10.1% compared to June 2020, and a 13.6% decrease compared to May 2021.
Total residential sales in June included 411 detached, and 103 condominium units (up 51.5%).
Sales also included 74 semi-detached homes and 152 townhouses.
In June, the average sale price for all residential properties in the Kitchener-Waterloo area was $759,115.
This is a 26.4% increase over June 2020 and a 2.6% increase compared to May 2021.
The average price of a detached home was $919,914.
This is a 31.9% increase from June 2020 and an increase of 5.9% compared to May 2021.
What’s Next for the Housing Market?
Canadian Real Estate Association (CREA) updated its forecast for the remainder of 2021 and 2022, saying that while sales, from a historical standpoint, will continue to slow, activity will still be very strong. CREA calls for a record 682,900 home sales in 2021 – an increase of 23.8% from 2020, before dipping -13% in 2022 (which would still be the second-highest year ever). Home prices will continue to rise by 19.3% next year, reflecting a continued supply and demand imbalance, before levelling out by 0.6% in 2022 to an average of $681,000.CREA expects immigration and migration to strongly pick back up once lockdowns end, which will also have an impact on the market.While conditions won’t be as crazy as they were during the pandemic’s peak, historically strong demand and too-little supply will continue to make it a challenging market for would-be buyers this year and next.