The housing market in Kitchener Waterloo has been red hot for a long while so it shouldn’t be a surprise to see a bit of softening heading into the summer. And this is something I’ve been feeling for a few months, as have many of my colleagues.
Having said that it’s still a sellers market and strongly so, but perhaps not as crazy as February and March. And the vast majority of homes being sold are netting a healthy premium for their owners much to the chagrin of buyers who are still dealing with multiple offers.
But now we are seeing at most 10 offers on a place and not 30. My 3 most recent sales had multiple offers with only two or three people competing. The sold to list ratio has come down too, but still garners, on average, a 12% premium on each sale. Last time I posted on the subject sold to list was 116%
The Kitchener Waterloo housing market is definitely softening. But how long this will last for is anyone’s guess. Historically the summer months have a bit of a lull but I’m not convinced we can rely on old metrics anymore. While I do see the situation improving for buyers it won’t do so in any significant way until demand and available inventory match up a bit better. And right now there’s less than a month’s supply when there should be over 3 months if we were in a balanced market.
Here’s how June’s shaping up mid month. Prices are either flat or slightly lower depending on the segment you’re looking at. Waterloo is still the outlier for prices with Cambridge roughly on par with Kitchener. Needless to say these numbers could change a bit by month’s end.