First-time buyers will find the Waterloo Region daunting

First-time buyers will find the Waterloo Region daunting

First-time buyers will find the Waterloo Region daunting

In the near future, the Waterloo Region’s real estate market will most likely cater to middle-aged buyers of second homes as well as those in the 55-74 age bracket, leaving others scrambling in a highly competitive market.

Stricter mortgage regulations along with growing prices and interest rates would make the region a difficult place to purchase a home for first-time buyers, according to Canada Mortgage and Housing Corp. regional economist Ted Tsiakopoulos.

“First-time homebuyers aren't going to be in the driver’s seat,” Tsiakopoulos said earlier this week, as quoted by the Waterloo Region Record. “This is a different market that we are heading into.”

According to the latest data from the Kitchener-Waterloo Association of Realtors, year-to-date sales volume went down by 13% compared to the same period last year.

Read more: Price growth rate outside Toronto maintains strength

Both the middle-aged demographic and the elderly have a trove of equity on their side – a resource that a vast majority of the younger generations simply can’t match, Tsiakopoulos added.

“These two age cohorts represent great opportunity.”

The average sale price in the region across all housing types increased by 7.7% year-over-year in October, reaching $489,725.

 

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