The slowdown underway in Waterdown continued in June, with new numbers showing the number of homes sold fell by 26.8%, and average prices have decreased several months in a row. June’s average sale price dipped by 5.59% over last month but is still UP 6.6% over the same month last year.
As was the case in many parts of Canada, house prices in and around Waterdown exploded during the COVID-19 pandemic, as record-low interest rates allowed buyers to stretch their budgets to buy more expensive homes. But that trend changed direction abruptly in March of this year, when the Bank of Canada started to hike interest rates.
The impact on the market was almost immediate, as sales and new listings slowed, and the bidding wars that were once commonplace began to vanish, as buyers could afford to be choosier.
The two main reasons why we are seeing less sales can be summarized by the following.
- The affordability challenge presented by mortgage rate hikes
- The psychological effects wherein homebuyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up.
How does this impact the value of my house?
Even though there is a slight decline in the value of homes in Waterdown, it’s not as pronounced as the one underway on the volume side. Since the peak of the market in February, the average sale price has dropped 19.5% where inventory levels were hovering at 20 available homes. Fast forward to June and inventory has risen by just over 300%. When there are more options of Buyers to chose from there will be a continued downward pressure on house values and will continue to do so through the summer months.
What if I still wanted to sell and take advantage of where Waterdown’s Home Values are currently?
For those looking to make a move, consider the following tips from Van Geest Group:
- With more homes available on the market, the well priced homes with the most updates for the best value will be the ones that sell. If your home is in need of a refresh, be sure to hire an agent that can provide insights as to what the best renovations are to appeal to the largest buyer demographic so as to maximize a return on your renovation investment.
- Homes that have been professionally staged present better online and will generate more interest from suitable buyers.
- Marketing, Marketing and more Marketing. Professional photos, 3d tours, drone photography and a compelling description highlighting the unique features of your home online are more valuable now than ever.
If you are going to hire a Realtor to market your property, promise us that you will ask these questions to your prospective agent:
- How long have you been selling houses? (Experience in slower markets MATTERS!)
- How many homes have you sold in Waterdown this year? (Demonstrate local expertise)
- What services do you bring to the table to market our property? (An established agent will have a budget to market your property for an extended period)
- How do you leverage social media to bring more eyes to our home? (Aside from Realtor.ca, Social media is THE best tool to bring qualified buyers to the table, ensure your Realtor knows how to use it)
- Do you offer complimentary staging? Staged homes sell for more money in less time
- Open house strategy. Realtors with a team of people at their disposal have ways to network with local businesses, run contests and come up with other creative strategies to get people through the door)
- Are you a member of the Toronto Real Estate Board (TREB) and our local Hamilton Burlington Board (RAHB)? Without Realtor access to the TREB board, sellers are missing eyes from those from the East who are looking for better value in the West when purchasing a home)
Sound like a lot of information? Give us a call at 905 220 2016, we will arrange a confidential and free information session where we can demonstrate our local expertise, recent Waterdown Sales and customized marketing plan to sell your home for the most amount of money in the least amount of time.