Real estate perks up in Southern Ontario

Cities in Southern Ontario are seeing a pickup in real estate activity as buyers try to strike deals before heat returns to the market.

Some properties are selling to competing buyers in cities such as Guelph, Cambridge and Kitchener-Waterloo, though bidding remains subdued.

Unusually mild temperatures may be one factor in the cities west of the Greater Toronto Area: In many years winter weather hampers January sales, but relatively light dustings of snow in 2024 so far have encouraged sellers to list their properties and real estate buyers to circulate.

Potential buyers in the Kitchener-Waterloo area seemed mired in uncertainty in the fall says broker Faisal Susiwala of Re/Max Twin City Faisal Susiwala Realty.

A couple of interest-rate hikes by the Bank of Canada last summer surprised consumers, he says, and many became hesitant to buy or sell.

“They didn’t want to be fooled again,” says Mr. Susiwala.

“The stagnation has lifted in recent weeks,” he says, pointing to a combination of softer prices and an expectation among consumers that interest rates will fall later this year, which in turn may revitalize sales.

A slight shift in tone from the Bank of Canada has also bolstered consumer confidence, says Mr. Susiwala.

In late January, the central bank held its key interest rate steady at 5 per cent. Bank of Canada Governor Tiff Macklem said discussions among members of the Governing Council has turned to how long the policy rate needs to stay at its current level.

A modest bungalow in Galt, Ont.’s north end recently drew 17 bids after it was listed with an asking price of $599,000, says Mr.