Condo Prices Dip in June Here in Waterloo Region

I hope you and your family are doing well and enjoyed your long holiday weekend.  Summer is here so make sure you get out and enjoy the nice weather and hopefully some vacation time with the family. 

The June stats are out and things are still cooling off in the housing market here in Waterloo region as expected with the threat of higher interest rates and a possible recession. 

There were 561 residential homes sold in June, a decrease of 24.0 per cent compared to the same month last year, and 17.3 per cent below the previous 5-year average.

For the fourth consecutive month we’re seeing home prices moderate as the number of properties available for sale has steadily increased. In June the average price of a detached home has levelled off to where it was this time last year.

Total residential sales in June included 326 detached (down 20.7 per cent from June 2021), and 103 townhouses (down 32.2 per cent). Sales also included 84 condominium units (down 18.4 per cent) and 48 semi-detached homes (down 33.3 per cent).

In June, the average sale price for all residential properties in the Kitchener-Waterloo area was $791,674. This represents a 4.2 per cent increase over June 2021 and a 9.6 per cent decrease compared to May 2022.

• • The average price of a detached home was $920,349. This represents a 0.0 per cent change from June 2021 and a decrease 9.5 per cent compared to May 2022.

The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $790,600 in June. This represents a 6.8 per cent increase over June 2021 and a 6.8 per cent decrease compared to May 2022.

• • The benchmark price for a detached home was $876,600. This represents a 5.3 per cent increase from June 2021 and 7.3 per cent decrease compared to May 2022.

This time last year, sales were going through the roof, but the home buying scene is a little different this year with the recent mortgage rate hikes both long and short term as well as the possibility of a recession hitting the global economy.

While any shift in the market will result in some individuals predicting the worse, the simple reality is that the market we had been in was unsustainable. What this means for buyers is more inventory, more choices, and perhaps most importantly, potentially less stress when purchasing. For sellers, they need to ensure their properties stand out from the competition and be aware it may take more time to sell their home and for potentially less money than they were expecting.

There were 1,285 new listings added last month, an increase of 49.2 per cent compared to June of last year, and a 41.7 per cent increase compared to the previous ten-year average for June.

The total number of homes available for sale in active status at the end of June was 991, an increase of 165.0 per cent compared to June of last year, and 20.6 per cent below the previous ten-year average of 1249 listings for June.

The number of months of inventory increased to 1.8 months in June from 1.6 months in May. While inventory is still at historic lows, this is the highest it’s been since September 2019 and a return to where inventory was in the pre-pandemic June of 2019. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.

The average number of days to sell in June was 13 days, compared to 11 days in June 2021. The previous 5-year average is 17 days. Keep in mind though this number is skewed in my opinion due to home listings being cancelled and relisted after a week or two. 

Historical Sales By Property Type

Months Supply of Homes for Sale

Historical Median Sales Price – By Property Type

Historical Average Sales Price – By Property Type

Average Days on Market

If you are thinking of buying or selling this summer, wondering what the neighbor’s place sold for, or have any questions at all, give me a call, text at 519-497-4646 or shoot me an email to kevinbakerrealestate@gmail.com

Enjoy the nice weather and have a great July!

Kevin