What experts say we can expect from Waterloo Region's housing market in 2024

Real estate experts in Waterloo Region are expecting stronger sales in 2024.

According to the Waterloo Region Association of Realtors (WRAR), 2023 marked the slowest year for home sales in more than two decades.

WRAR said the main factor behind slowing sales was high interest rates.

“Because of that instability with interest rates, buyers were hesitant to take the plunge and enter the market, and sellers were also leery of putting their home up and not seeing the expected prices,” explained WRAR president Christal Moura.

Shawn Ramautor, a sales representative with Royal LePage Wolle Realty, said 2023 was a stagnant year that featured a lot of apprehension.

“You had a lot of people that wanted to buy, but just couldn’t buy because the interest rates were too high. Then you had this other portion, or pocket of people, who had the ability to buy, but were waiting in essence for the bottom to keep on falling out and keep on dropping,” Ramautor said.

Source: Waterloo Region Association of Realtors

LOOKING AHEAD TO 2024

Experts are expecting a bounce back in 2024.

“The interest rates are anticipated to drop. Prices have come down a little bit on the sales side, which means there’s some silver linings,” said Moura. “Buyers are going to be able to get into the market now and things will start to sort itself out. It might be a slow start this [first quarter], but the spring market always brings a little bit of added confidence and expectation and optimism.”

There’s currently more demand than supply in the housing sector. Because a shift in the market is anticipated, Ramautor said anyone who is in a position to buy right now should move quickly.

“As soon as those interest rates drop, and historically we see a push in the spring activity, you’re going to start seeing more multiple offers,” he explained. “[Then] you’ve got more people that can buy. People that are sitting on the sidelines saying: ‘Hey, rates are coming down now, prices aren’t going to continue to drop, and they’re going to go up so I better enter the market.’ I think to mitigate that, if you’re able to buy today, you should seriously, seriously consider looking.”

GETTING ADVICE

Ramautor recommends working with people who have experience in particular markets.  

“You want to find local help, somebody who knows the market and is familiar with the areas, and can truly assess value on that particular property,” he added. “We have a lot of agents that aren’t familiar with the area who are coming in and maybe misleading their clients and artificially inflating the values of houses. That’s something we did potentially see in 2020 and 2021.”

WRAR also said it’s more important than ever to find reputable help when buying or selling.

“Because the way the industry is, the market is, it’s important for buyers and sellers to be navigating this landscape with an experienced realtor,” Moura said.