The Waterloo Region Multifamily market changed drastically with record-breaking sales volumes. However, interest rate increases slowed things down to a crawl with investment volume dropping by 97%.
- The number of transactions dropped significantly to just 6 by the end of Q3 2022 when at the same time in 2021 it was 28 transactions.
- The issue is driven not just on the buy side but also on the supply side with prices holding steady at $198,321 and cap rate of 3.83% leaving us to believe that sellers are also holding off bringing properties to market in uncertain times.
- At the same time, rental fundamentals continue to stay strong with vacancy rising slightly by 2% and average 2-bedroom rents increasing by 24% year over year to $2308 per month.