'Little bit more hesitancy': Realtors say price drops are giving KW buyers more options

There may be more hope on the horizon for aspiring first-time home buyers in the area.

The average sale price for all residential properties in Kitchener-Waterloo hit an all-time high of $1,007,109 in February, but according to the Kitchener-Waterloo Association of Realtors, the average home sale price has since been falling.

“From December to February there was about a $150,000 increase, and then from February down to May, we’ve seen basically the same thing but in reverse. It’s gone down about $150,000,” said Owen Lennox, a sales representative with Lennox Realty Group.

The average sale price for all residential properties in the KW area was $875,194 last month, down 3.5 per cent from April, and 13.1 per cent below the price in February.

However, it is still 18.3 per cent higher than the same month last year.

“They were used to homes selling very quickly, within a matter of days to a week pretty much at max," said Lennox. "Now we’re seeing some homes that are staying on the market a little bit longer and we’re having to do sometimes some price adjustments depending on how much competition there is."

The KW Association of Realtors says 661 homes were sold in May, which is down 22.7 per cent from the same time last year, while 902 homes were available for sale at the end of the month.

Realtors say there are now more options for buyers to choose from, which is making them work harder to promote their products.

“Buyers are able to be a little bit more picky and choosy with their homes, a little bit more selective," said Bailey Rider, a realtor with Shaw Realty Group. "We are noticing a little bit more hesitancy.”

First time home buyer Alexio Delgobbo says, despite the drop in prices, it's been difficult to find a home in his price range.

“We’re hoping to find something in between $600,000 and $850,000, but even that’s been tough,” said Delgobbo.

Delgobbo adds that most homes go for well over the original asking price.

“We go check it out first, and then right away it’s sold, or we get some sort of notification that says sort of a bully offer comes out of the blue, so okay let’s move on,” said Delgobbo.

According to Rider, the Bank of Canada increasing the key interest rate in April has also had an impact on the market.

“That  has sparked, all of a sudden it just went crickets in the market,” said Rider.

Rider suggests home buyers consult with their mortgage advisers, and see what they can qualify for before exploring the market.