While the Waterloo region remains a relatively affordable area, especially compared to the ever-changing Toronto, the near future of the market will mainly focus on the preferences of two main demographic characteristics: contemporary adults buying their second home and baby boomers ( between 55 and 74 years of age).
“These two age groups represent a great opportunity,” said Canada Mortgage and Housing Corporation regional economist Ted Tsiakopoulos, quoted by the Waterloo Regional Registry.
The average price of houses in the region grew by 7.7% year after year in October, reaching $ 489,725. This trend has made access to profit, or equity, something that a large proportion of potential younger buyers simply do not have at the time, a particularly powerful tool.
What’s worse, a group of other factors, including stricter mortgage rules and increases in interest rates, would only make life even harder for younger generations who hope to establish roots in the Toronto region.
“Homebuyers for the first time will not be in the driver’s seat,” Tsiakopoulos said. “This is a different market than the one we are targeting.”
The updated figures from the Kitchener-Waterloo Real Estate Agents Association showed that affordability pressures reduced the sales volume of the year to date by 13% compared to the same period last year.
If you are exploring the possibility of moving to the Waterloo region, we can gladly offer you advice and the options that best suit what you are looking for.