What housing market cooldown? If you’re buying or selling a home, September has come and gone like a lion! I knew this was happening weeks ago and was stunned to see yet another story about our supposed Housing Market Cooldown.
The effects of the foreign buyers tax hit hardest months ago in May and June. After an initial steep plunge in prices we saw modest decreases each month followed by a strong reversal in September. Each of the tri-cities and Waterloo Region as a whole saw increases last month in all housing types and in single detached homes as well.
Here’s a look at Waterloo Region’s data.
Bidding wars are still quite frequent and I’ve found myself in several over the past few weeks, and I’m in the middle of one right now, waiting to hear back, while I’m writing this. Buyers with conditions are washed out of multiple offer situations pretty quickly but do find success in offers with limited competition.
There are deals too, and 2 of my clients succeeded in getting properties for under asking. They even managed the usual 3 conditions of financing, insurance and inspection; one buyer at the end of August and the other just last week. The market has calmed enough that many home inspectors are able to put food on the table again after a very challenging year.
One month of data doesn’t make a trend but a close look at the graphs does speak volumes. June, July and August had weakening price drops month over month which was certainly pointing to prices flattening out. What housing market cooldown? The strong reversal we see is a pretty good tell that the correction is over. These hot September numbers came in despite interest rate hikes in July and September by the Bank of Canada, and new tighter mortgage qualification rules.