Market Snapshot – January 2024

Residential home sales were up 49% in January 2024 in comparison to January 2023. This annual increase came as some homebuyers started to benefit from lower borrowing costs associated with fixed rate mortgage products. New listings were also up 30% year-over-year. The resulting tighter market conditions when compared to the same period a year earlier, potentially points toward renewed price growth as we move into the spring market.

“January is traditionally a slower time of year for home sales, but it’s reassuring to see the increase compared to last year,” said Christal Moura, president of the Waterloo Region Association of Realtors, in a release. “This time last year, we hit an all-time low in January home sales, and while this year has begun with sales below the historical average, the market is showing signs of improvement.”

In January, the average sale price for all residential properties in Cambridge was $733,759, which is down 6.5% from $785,175 in January 2023.  Looking at the change month over month, there was only a 1% decrease from December 2023, which turned out to be the slowest month in sales in over 20 years in Waterloo Region.

Breaking it down further we see the following changes year over year:

• Single Family Detached Home: Down 2.9% from $826,380 in January 2023 to $802,640
• Single Family Attached Home: Down 16% from $785,175 in January 2023 to $658,778
• Condominium Home: Down 4.3% from $644,933 in January 2023 to $616,956

Looking ahead we will see interests rates continuing to dictate the outcome of the housing market in Cambridge and across Canada. The first half of the year will likely be slow as the Bank of Canada (BoC) maintains its policy rate at a two-decade high. However, once the BoC starts to cut the rate we will see an active housing market as the high pent-up demand finally feels confident and comfortable to make the move (literally!).

Another major contributor to the affordability of housing, rests in the booming population and the lack of inventory.  The provincial government has directed Kitchener, Waterloo and Cambridge to add 70,000 homes between 2022 and 2031 as part of the province’s bid to add 1.5 million homes in 10 years.  In total for 2023, Kitchener, Waterloo and Cambridge had 4,380 housing starts (Apartment 2569, row 1121, semi-detached 30 and single family 660), which is 22% more than the previous decade (3,582).

It’s encouraging to see policy makers starting to work together with those closer to those living and working in the community.  On February 2, 2024, Prime Minister Justin Trudeau, made an announcement that the federal government has reached an agreement with the City of Waterloo, Ontario, to fast-track 650 new housing units over the next three years. This work will help spur the construction of more than 15,000 homes over the next decade and help meet the demand in Waterloo.  News like this wouldn’t be possible without strong leaders like the Mayors of the respective cities advocating and bridging the gap in communication between the federal and municipal government.

The Region of Waterloo remains to be considered one of Ontario’s best cities to live in.  Our community is diverse and vibrant, and continues to be a leader in how we approach the housing affordability issue.  January 2024, marks the start of a new year, and if we can continue to build on these strong sales numbers in our region, I think we will find that the future looks bright.

If you have any questions and want to talk about this or anything real estate related, please send me a message, I am always happy to help.