As we mentioned in my last update we saw record breaking house sales and prices in 2017 and so far it looks like 2018 is off to another strong start. Housing inventory tends to be lower in January and this January was no exception. What was surprising to many is the number of multiple offer situations despite recent changes is the lending landscape which is pushing prices up.
The question many are asking is, “Will this continue into the spring as inventory starts to increase?”
While no one can predict exactly what will happen in the KW housing market as we head into the Spring, I do think we will continue to see prices stay strong even as more inventory comes on the market. Typically we see an increase in buyers in the spring which I anticipate will more than make up for an increase in inventory.
Another question we are hearing often is, “How have the new mortgage rules impacted the market?”
It is still too early to tell exactly how the new mortgage rules are going to impact the market, however, with the new stress test and higher borrowing costs it is anticipated that buyers will be looking to areas where housing is more affordable. Waterloo Region is still considered very affordable compared to the GTA housing market. The recent mortgage changes will no doubt take many buyers out of the local market or reduce their max purchase price. I expect the number of buyers pushed from larger markets into KW to create a net increase in the number of active buyers, especially below $450,000.
Have a question about the market? Don’t hesitate to contact us.