While the Waterloo Region is still a relatively affordable haven especially when compared to red-hot Toronto, the near future of the market will primarily cater to the preferences of two major demographics: middle-aged buyers of second homes, and baby boomers (ages 55-74).
“These two age cohorts represent great opportunity,” Canada Mortgage and Housing Corp. regional economist Ted Tsiakopoulos noted last week, as quoted by the Waterloo Region Record.
The average home price in the region grew by 7.7% year-over-year in October to reach $489,725. This trend has made access to equity – something that a large proportion of younger would-be buyers simply won’t have at the time – a particularly powerful tool.
Read more: Multiple offers slowing down in non-Toronto ON markets
What’s worse, a bevy of other factors including tighter mortgage rules and interest rate hikes would only make life even harder for the younger generation hoping to establish roots in the region.
“First-time homebuyers aren't going to be in the driver’s seat,” Tsiakopoulos said. “This is a different market that we are heading into.”
Updated numbers from the Kitchener-Waterloo Association of Realtors showed that affordability pressures pulled down year-to-date sales volume by 13% compared to the same time last year.
Non-Toronto markets in Ontario see accelerated home price growth
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