Housing prices in some cities have hit record-breaking highs in the earlier part of this year. Now that interest rates are on the rise, Canadian markets are adjusting to rising inflation rates and buyers to the cost of borrowing, both of which are putting downward pressure on the price of homes. In February, the average price of a home in Ajax was $1,273,349, as of September the average price has fallen 29.7% to $894,975. Some prospective buyers are choosing to wait it out on the sidelines to see how the market will unfold, but the question on a lot of their minds is how long they should wait. In some cities, the prices have come down and are staying quite flat indicating now might be the right time to buy.
Considering Buying in These Cities? Make Your Move!
Brampton, ON
Home prices in Brampton peaked in January, reaching $1,367,444. Now in September, the price has dropped 26.3% over eight months to $1,007,324. Since the summer, prices have remained quite steady. August saw a dip of just 0.87% from July, falling from $1,027,535 to $1,018,639. In September, prices declined further to $1,007,324, just 1.11% lower than August’s price. In September, the city saw 405 sales, with about half of which being for detached homes. As the price continues to hover steadily around the lower end of the $1M mark, now could be the right time for prospective buyers in Brampton to make their move.
Kitchener-Waterloo
In Kitchener-Waterloo, prices have fallen by 24.4% since the peak of $1,005,637 in February this year. Currently, at an average of $760,577, prices dipped 1.63% from July to August, from $764,109 to $751,652. While still remaining fairly steady, there was a slight price increase of 1.19% from August to September, down only by $4,000 from July. The Waterloo Region experienced a booming real estate market throughout the pandemic, and although sales have slowed, detached homes are still in high demand in Cambridge, Kitchener, and Waterloo. Prices have remained steady around the $760k mark, and given the more affordable price point compared to many markets in the Greater Toronto Area, Kitchener-Waterloo’s popularity for Canadian buyers may remain strong long-term.
Ottawa, ON
The average price in Ottawa peaked in March, hitting $759,425. It has since fallen by 15%, to $645,987 in September. Prices have remained relatively steady since July, with a difference of a little more than $1,000. July’s price was $647,044, falling by 1.68% to $636,189 in August, before a slight increase of 1.54% into September. The comparatively lower average price is due to many of the more affordable suburbs surrounding the city’s core, where semi-detached and detached homes are in high demand. In the city centre, buyers tend to gravitate towards condos. With fewer buyers currently active in the market, it might be a good opportunity to secure a home in Canada’s capital.
If you’re considering entering the market this fall or early next year, now is a great time to start talking to a local real estate agent about your market of interest. We have qualified agents in your area that are able to help you find the home of your dreams. Download our free buyer’s guide and contact us today.
