There are no two ways about it, we are absolutely seeing a steady decline in property values across the region. With interest rates rising and the inflation of the real estate market in early 2022, the bubble is officially popped, with no end to the deflation in sight.
Across the board we are seeing a sharp decline in average sale prices. Kitchener & Waterloo have seen 14% decline in the last 2-3 months, and even Guelph with it’s steady market has seen a 17% decline in the same time period. The market is correcting at the same rate that it inflated earlier this year. While this decline is sharp and seems significant, we think it will have a quick and abrupt bottom to its fall. Right now we have a lot of inventory, 342 available property for sale in just Guelph in the month of July, what will happen is that supply will simply go away, people will start choosing to not sell and stay in place. Now there will always be families that have to buy or sell for one reason or another, and foreclosures could be on the horizon if banks continue to hike the interest rates, but those sales will bring a false sense of values and in turn will bring buyers to the market, flooding it again with pre-approved buyers. Likely what will happen, this is just a prediction, the government or the banks will start incentifying buyers back to the housing market…”Get a mortgage with us, and we will give you a toaster” kind of stuff… and the wheel spins back to a more level market. No one, absolutely no one, wants to go back to the insanity and instability of the Ontario Real Estate Market in early 2022, it was scary and disheartening. Leveling the playing field with more inventory, affordable housing, government incentives (maybe get rid of the land transfer tax, just a suggestion), mandatory 10 day cooling periods, capping the amount of properties that can be owned by one person/corperation and revisiting our mortgage approval system in Ontario could go a long way…oh and some accountability from governing bodies on malpractice in the Sales Representation …to gaining back the confidence of Buyers and Sellers in the coming years. Collectively, we have a lot of work to do,
Reach out if you want to talk stats, I love it.