The Buyer & Seller Update: Summer of 2024 - Waterloo Region

Waterloo Region has seen the inventory of homes for sale slowly rise throughout the summer. As cited in our Spring report, higher interest rates and affordability constraints have created a “holding pattern” in the market, characterized by elevated listing inventory and depressed sales volume. Sellers anticipated Buyers would return in greater numbers following interest rate cuts in June and July, each by .25 %. That has yet to be the case, although there was a slight increase in sales volume year over year for July 20024 vs 2023 (+4.6%). Instead, listing inventory continued climbing. In July 2024, 1,391 new listings came to market, nearly 30% higher than the 10-year average.

• see below for analysis from Benjamins Realty on Buyer and Seller Strategies in the current mid-summer market of 2024.

Buyer Strategies and Interest Rates:

Buyers who are well-capitalized but have been waiting to buy may now be entering the market. This level of residential inventory has not been available for many years. However, affordability is still a significant concern for the vast majority of consumers. The anticipated rate cuts projected for the fall further encourage delaying purchases. Even the Bank of Canada is now acknowledging that the housing market has not rebounded as expected in light of the first two rate cuts while bankers call for further cuts. 

Buyers should look for homes where Sellers are motivated to sell at today’s valuations, not last year's and certainly not the year before that. Although listing inventory is elevated, there remains a divide among Sellers between those who insist on higher values that are not in line with current sales and those who are willing to negotiate in good faith to arrive at a fair price. It is a regular occurrence in the Waterloo Region for there to be as many total daily cancelled and expired listings as there are sold.

Read more to find out how Benjamins Realty provides purchasing services for Buyers.

Seller Strategies:

When a potential client is considering selling property, one of our first steps is to prepare a Current Market Valuation (CMA for them. The opening paragraph provides the following statement:

Market value is defined as "the most probable price that a property should bring in a competitive and open market, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by an undue stimulus."

Essentially, it means that a buyer will not pay more than what they can get for a similar property down the road. In the past, Sellers could watch as the market routinely set new price markers for their neighbourhood every time a home was listed. Furthermore, Buyers were motivated by the fear of missing out, as the next bidding war might only go higher. That’s not to say these market conditions cannot still arise for desirable and well-priced listings, but instead, once again, a Seller must truly consider how their home stacks up against the competition.

For those pondering selling their home, consider the following three pillars of successful home marketing:

1. Valuation - Make sure you have an accurate idea of your current market value based on recent and comparable sold property

2. Presentation - If your Realtor cannot create a compelling digital and print presentation of your home, they are not properly equipped for the job. This should include (videography, HD photography with aerial photos, and custom digital landing pages for pay-per-click advertising with Google and Social Media platforms, Open Houses, print brochures, and a neighbourhood mail campaign)

3. Negotiation - A seasoned negotiator has trade relationships with other professional agents. They are able to discern when it is the right time to push and when it may be time to concede. A strong negotiation is also the result of a strong valuation; a Seller has more leverage when the Buyer sees value.

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