Home prices in Waterloo Region fell dramatically in August as the number of homes changing hands also fell, according to the Waterloo Region Association of Realtors.
For the second month in a row, prices fell in the area, with the average home selling for $761,377, down 4.4 per cent from July, when that figure was $795,778.
This is a sharp decline over the past two months since the average sale price was $839,869 in June.
The average cost of a single-detached home in July fell to $884,390, 3.9 percent lower than the July total but 3.9 percent higher than a year earlier.
“Homebuyers benefited from strong listing activity in August, which helped provide a little more choice and moderate prices,” said WRAR President Megan Bell.
“But affordability remains a major concern for many looking to enter the market who find it difficult to squeeze in what they want with what they can afford.”
Estate agents say just 568 homes were sold in August, down 23.5 per cent from the previous five-year average.
“For the first time in a decade, we saw August home sales drop below 600 units,” Bell said. “Home sales were weaker than normal last month, which is not surprising given the current borrowing environment.”
A flood of new homes hit the market last month, with 1,025 new listings added to the system in the region in August, up 9.7 per cent from a year earlier, monthly figures show. published by WRAR.
The condominium market appears to have played a large role in the rise in inventory, with inventory rising 35.3 percent last month.
“Buyers today may find it easier to access a condominium, which can be a great choice for both first-time buyers and anyone looking to change their lifestyle,” said Bell.
© 2023 PKBNEWS, a division of Corus Entertainment Inc.