August was a soft month for home sales in Waterloo Region. New statistics released by the Waterloo Region Association of Realtors (WRAR) show there were 568 homes sold last month, which represents a 14.2 per cent decrease compared to August 2022. The association said it’s the first time August sales dipped below the 600-unit mark. “Home sales were softer than normal last month, which is not surprising given the current borrowing environment,” Megan Bell, president of WRAR, said in a news release. Local real estate agent Tony Johal said the Bank of Canada’s fixed interest rate announcement on Wednesday is a good decision, which could help the industry. “A lot of people do enter the market in the fall with the intention of closing by the end of the year. You don’t want to discourage people getting into the real estate market, there’s a lot of inventory out there for them to pick from, so I think it’s a smart move,” Johal said. Although overall home sales were down in the region compared to last year, the number of condominiums sold was up by 10.4 per cent and townhouse sales were up 12.6 per cent. “Simply because many people bought these townhouses two years ago or three years ago. Now, all of a sudden they’re closing and they just got the keys and things have changed financially for a lot of people,” Johal said. The average sale price was recorded at $761,377. That’s a 1.4 per cent increase compared to August of last year, and a 4.4 per cent decrease compared to July. The association said there was strong listing activity in August, helping to increase choice and soften prices. New listings were up 9.7 per cent compared to last August and 11.7 per cent compared to the ten-year average for August. Mortgage broker and co-founder of ratefilter.ca Andy Hill said many homeowners who are locked into a fix rate mortgage are refraining from selling right now. He said although the Bank of Canada’s fixed interest rate could be the first step to potentially seeing relief, many are still struggling. “It’s a tough time, especially for new homeowners that bought during the pandemic and bought on an adjustable rate mortgage,” Hill said. “I think that this is one of those times where you’ve got to just try to buckle up and hold on in a holding pattern and hopefully things get better in the next few years.” He said his biggest tip for anyone renewing a mortgage in the near future is to shop around to ensure you’re getting the best mortgage rate possible.
