Economic Uncertainty Slows Sales
Sometimes, you can’t blame everything on the weather! While the first inkling of springtime temperatures a couple of weeks back seemed to synch up with an uptick in real estate sales activity here in Waterloo Region, things have cooled in recent days… both weather-wise, and housing market-wise.
Old hands in the real estate business can definitely attest to an annual correlation between the arrival of nice weather and increasing buyer activity – it just makes sense. People like to be out and about when the sun is shining, and spring weather in general tends to get people thinking of their future plans and next steps – whether those be family-oriented, career-facing, or otherwise.
But with tariff talk continuing unabated and the country in the midst of a federal election campaign, Canadians seem to be holding their collective breath and waiting to see what the economic fallout from an ongoing trade war with our southern neighbours will look like back home, and what any potential fallout will mean for their aspirations to move in, move out or move up. And while temperatures seem to be on the rise once again this coming week (finally!), recent market indicators point to the slower-than-normal spring market in Waterloo Region continuing for the foreseeable future.
According to statistics released earlier this week, we’re sitting on approximately 61% more housing inventory here in Waterloo Region right now than we were at the same time last year. If you’re an active buyer in this market, this should be music to your ears. More sellers in direct competition for your dollar, combined with falling interest rates, means that you finally have some advantages not seen in our market in the better part of a decade. Sellers today are far more willing to accept conditional offers – meaning less stress over going on blind without inspections, taking your time to secure favourable financing terms, or having to worry about the sale of your own property.
At the same time, it’s obvious that buyers are nervous. That’s understandable given the potential impact of the trade war on the job market here in Waterloo Region – a part of the country that remains heavily invested in the manufacturing and automotive sectors. Sales this past week are actually down by a third compared to mid-March of 2024, in spite of the generally favourable conditions for buyers. Nearly two thirds of the sales we did see came in below the $750,000 mark – again, an average that’s lower than anything we’ve seen since pre-Covid.
The bottom line? If you’re a buyer with job security, conditions are increasingly favourable for you. Take your time to find the right home for you and your family – deals are out there to be found. Some solace for Sellers comes in the reality that the nicer properties are still moving. Multiple offers haven’t completely disappeared yet. Put a little bit of money into bringing your property up to spec, make sure it’s looking its absolute best, and you should still be able to attract a decent amount of attention.
Furthermore, our team has often seen first-hand how there isn’t much of a true connection between the head and the pocketbook when a buyer falls in love with a spectacular home. So, if you’ve got a great home in one of our favourite neighbourhoods, nearly everything you’ll be hearing about market conditions being unfavourable in the coming months can essentially be disregarded. Tip-top properties continue to command attention from discerning buyers who understand that the overall investment in time and money required by renovations will far outweigh the value present in a move-in-ready, high-end home nearly every single time.
As always, should you have any questions or concerns about the market, about your own home, or simply want to pick our brains about where we see things going over the next few months, we encourage you to get in touch! Have a great weekend.