House prices in Kitchener-Waterloo fall for the fourth straight month

House prices in the area fell for the fourth straight month in June, according to the Kitchener-Waterloo Association of Realtors.

After peaking at $1,007,109 in February, the average selling price slipped to $791,674 in June, brokers say.

While that figure may bring a sigh of relief to buyers and a sigh of sadness to sellers, the median selling price is still 4.2 percent higher than last year’s level when it was $759,115.

The median price for single-family homes has also fallen in tandem with the median price, as it now stands at $920,349, the first time it has been reported by KWAR to be less than $1 million in several months.

“For the fourth straight month we are seeing moderate home prices as the number of properties for sale has steadily increased,” said KWAR President Megan Bell.

“In June, the average price of a single-family home has leveled off at the level it was at this time last year.”

The number of homes changing hands has also slowed in the area as realtors reported that 561 homes were sold on the Kitchener-Waterloo market in June, down 24 percent from a year earlier when 740 houses were bought.

Bell believes a return to summer normalcy could play a role in slowing the market.

“This time last year sales were through the roof,” Bell said.

“The home buying scene is a bit different this year as people are finally taking their postponed trips, attending weddings and generally catching up on the many missed occasions of the last two years.”

A lack of tightness and rising interest rates could also be part of the problem as the Bank of Canada hiked them again on June 1 and is expected to do so again in July.

According to KWAR, 1,285 new listings were created last month, a 49.2 percent increase over the previous year.

At the same time, the number of months in storage is also starting to increase, as it now stands at 1.8 months, the highest since September 2019.