Interest rate hikes have been another hurdle for many people still trying to buy homes.
The Waterloo Region Association of Realtors (WRAR) released its August report on Wednesday, indicating the local housing market continues to cool, with prices creeping downward as the average price of all residential properties in Waterloo Region dropped to $750,849.
“Today’s announcement by the Bank of Canada to increase its policy rate by 75 basis points to 3.25 per cent is discouraging news for borrowers as it affects their purchasing power,” said Megan Bell, president of WRAR in a media release.
The most expensive dwelling was a detached home which saw an average price of $851,654, while the cheapest housing option was the apartment-condominium category with an average price of $464,959.
Owen Lennox, a realtor with Lennox Realty Group, said right now he is seeing a lot of reservations in the housing market, especially from buyers who are unsure of what is the best course of action to take. He said sellers are also rethinking the best way to ensure their property sells.
“It’s kind of [the housing market] going back to where, honestly, it really should be. It was much too fast before, and people were really having to make very quick decisions,” said Lennox.
HOME INSPECTIONS PICKING UP
The average home is sitting on the market for 22 days right now, up from the average of 16 days last August.
Home inspectors like Chad Hussey who works at Pillar to Post Home Inspections saw less business because with houses being sold within days of being listed, several people opted-out of a home inspection.
“During the pandemic, it dropped about, at least probably 75 per cent,” Hussey said.
“A lot of people, once they moved in before they moved all the furniture in, had us come in and do an inspection to let them know what they bought,” he said. “Hopefully there are no big surprises.”
Hussey said pre-purchase home inspections are back on the rise.
“Now they know exactly what condition they have, what to budget for and what to expect,” Hussey said.
