Condo Sales drop in 2023 here in Kitchener, Waterloo and Cambridge

Happy New Year!! I hope that you enjoyed the holiday season and made some wonderful memories with your families. Unfortunatley it was not a white Christmas but I know those skiers out there are anxiously awaiting the snow to arrive so they can hit the slopes.

The stats are out for 2023 and the market definitly struggled in the sales catagory. With interest rates at 20 year highs and inventory still tight it kept prices relativly stable but sales down significantly. Lets take a look at the stats….

There were 6,623 homes sold  in 2023, a decrease of 14.8 per cent compared to 2022, and a decline of 23.2 per cent compared to the previous 5-year average for annual sales. 

On a monthly basis, there were 285 homes sold in December, a decrease of 0.7 per cent compared to December 2022, and 25.6 per cent below the previous 5-year average for the month.

It should not be a surprise to anyone that for the second year in a row, the housing market in Waterloo Region has been affected by higher interest rates, resulting in a significant decline in annual sales. This year’s sales reached their lowest point in over two decades.

The trend observed in December reflects the overall slowdown in home sales throughout the year, with sales falling behind historical levels. The last time annual sales in Waterloo Region recorded fewer than 7,000 units was the year 2000.

Total residential sales in December included 172 detached (up 3.6 per cent from December 2022), and 54 townhouses (down 6.9 per cent). Sales also included 35 condominium units (up 2.9 per cent) and 24 semi-detached homes (down 4.0 per cent).

For 2023, total residential sales included 3,901 detached (down 17.0 per cent), and 1,339 townhouses (down 6.5 per cent). Sales also included 904 condominium units (down 9.2 per cent) and 457 semi-detached homes (down 26.6 per cent).

In December, the average sale price for all residential properties in Waterloo Region was $740,697. This represents a 2.8 per cent increase compared to December 2022 and a 2.1 per cent decrease compared to November 2023.

• The average price of a detached home was $848,151. This represents a 2.6 per cent increase from December 2022 and a decrease of 4.7 per cent compared to November 2023.
• The average sale price for a townhouse was $617,023. This represents a 0.8 per cent increase from December 2022 and an increase of 1.2 per cent compared to November 2023.
• The average sale price for an apartment-style condominium was $490,816. This represents a 5.0 per cent increase from December 2022 and an increase of 9.0 per cent compared to November 2023.
• The average sale price for a semi was $613,283. This represents a decrease of 0.5 per cent compared to December 2022 and a decrease of 0.5 per cent compared to November 2023.

Average Sale Price – Monthly

On a year-to-date basis, the average sale price for all residential properties in Waterloo Region decreased 7.7 per cent to $786,033 compared to 2022.

• The year-to-date average price of a detached home was $917,907. This represents a 6.1 per cent decrease compared to 2022.
• The year-to-date average sale price for a townhouse was $653,138. This represents a 9.0 per cent decrease compared to 2022.
• The year-to-date average sale price for an apartment-style condominium was $481,877. This represents a 9.0 per cent decrease compared to 2022.
• The year-to-date average sale price for a semi was $677,831. This represents a decrease of 7.9 per cent compared to 2022.

Average Sales Price – Year-to-date

Monthly MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo			Cambridge
Benchmark Type:	December 2023	Monthly % Change	Yr./Yr. % Change	December 2023	Monthly % Change	Yr./Yr. % Change
Composite	$705,700	-0.4	-1.4	$706,800	-2.5	-0.4
Detached	$798,100	-0.6	-0.9	$727,000	-2.9	-0.8
Townhouse	$602,000	-2.2	0.0	$657,500	-1.2	3.8
Apartment	$471,800	3.5	2.0	$497,700	1.1	1.6

Annual MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo		Cambridge
Benchmark Type:	2023	Yr./Yr. % Change	2023	Yr./Yr. % Change
Composite	$746,600	-9.9	$753,500	-9.5
Detached	$848,900	-8.5	$784,200	-9.1
Townhouse	$624,200	-10.8	$655,600	-10.5
Apartment	$475,500	-8.7	$485,900	-11.1

The region’s slowing housing market echoes the overall slowdown we are seeing in the broader economy.

There were 287 new listings added  last month, a decrease of 6.2 per cent compared to December of last year and a 17.9 per cent decrease compared to the previous ten-year average for December.

In 2023, 11,528 new listings were added, a decrease of 14.4 per cent compared to 2022, and a 4.4 per cent decrease compared to the previous ten-year annual average.

The total number of homes available for sale in active status at the end of December was 779, an increase of 36.0 per cent compared to December of last year and 5.8 per cent above the previous ten-year average of 736 listings for December.

The number of months of inventory is up 55.6 per cent compared to December of last year, but still historically low at 1.4 months. Between 2010 and 2015, December’s rolling 12-month average was 3.5 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in December was 30, compared to 25 days in December 2022. The previous 5-year average is 23 days. 

The average days to sell in 2023 was 19 days, compared to 14 days in 2022 and a previous 5-year average of 18 days.

If you have any questions, wondering what the home down the street sold for or are thinking of making a move in the coming months, feel free to give me a call or text at 519-497-4646 or email Kevinbakerrealestate@gmail.com and we can set up a time to get together for a coffe and discuss your families plans. 

Have a great January

Kevin

Average Sales Price – Municipality

Average Sales Price – Township

Monthly Sales By Property Type

Monthly Supply of Homes for Sale

Monthly Median Sales Price – By Property Type

Monthly Average Sales Price – By Property Type

Monthly Average Days on Market