Condo Sales at record Lows in Waterloo Region
I hope you and your family are enjoying a wonderful weekend and staying warm. This cold snap certainly has been a frigid one! The January Real Estate stats are out for Waterloo region and inventory is tight and sales are low to start the year. Lets break things down…
The number of homes sold last month totalled 297 units, a decrease of 41.9 per cent compared to January 2022 and 31.0 per cent below the previous 5-year average for the month.
Waterloo Region’s home sales in January were at their second lowest of any single month in well over a decade, home sales tend to be sluggish in January, and while we expected activity to ease to reflect economic challenges, this was a larger drop than originally anticipated.
Total residential sales in January included 176 detached (down 38.5 per cent from January 2022), and 61 townhouses (down 44.5 per cent). Sales also included 43 condominium units (down 48.2 per cent) and 17 semi-detached homes (down 46.9 per cent).
In January, the average sale price for all residential properties in Waterloo Region was $764,063. This represents a 20.1 per cent decrease compared to January 2022 and a 5.9 per cent increase compared to December 2022.
- The average price of a detached home was $888,487. This represents a 21.5 per cent decrease from January 2022 and an increase of 7.6 per cent compared to December 2022.
- The average sale price for a townhouse was $625,831. This represents a 26.1 per cent decrease from January 2022 and an increase of 2.2 per cent compared to December 2022.
- The average sale price for an apartment-style condominium was $495,753. This represents a decrease of 9.3 per cent from January 2022 and an increase of 6.1 per cent compared to December 2022.
- The average sale price for a semi was $650,588. This represents a decrease of 21.5 per cent compared to January 2022 and an increase of 5.5 per cent compared to December 2022.
| MLS® Home Price Index Benchmark Price | ||||||
| | Kitchener-Waterloo | Cambridge | ||||
| Benchmark Type: | January 2023 | Monthly % Change | Yr./Yr. % Change | January 2023 | Monthly % Change | Yr./Yr. % Change |
| Composite | $705,100 | -1.2 | -23.7 | $731,000 | 2.4 | -21.3 |
| Detached | $789,900 | -1.4 | -25.9 | $757,200 | 2.9 | -23.2 |
| Townhouse | $583,100 | -1.8 | -17.6 | $638,300 | -0.2 | -8.0 |
| Apartment | $481,300 | 2.0 | -5.1 | $487,600 | -1.9 | -4.3 |
On a monthly basis, we saw the average sale price increase across all property types in January and I’m also noticing more multiple offers happening, especially on detached homes that are priced under eight hundred thousand dollars.
Meanwhile, the Bank of Canada again increased interest rates at the end of January by 25 basis points to 4.5 per cent. While not a huge increase, the continuance of interest rate hikes is an ongoing factor in the reduction of home sales within the market.
There were 579 new listings added last month, a decrease of 13.3 per cent compared to January of last year and a 28.7 per cent decrease compared to the previous ten-year average for January.
The total number of homes available for sale in active status at the end of January was 651, an increase of 167.9 per cent compared to January of last year and 34.7 per cent below the previous ten-year average of 998 listings for January.
The number of months of inventory is up 233.3 per cent compared to January of last year, but still historically low at one month. Between 2011 and 2015, January’s average months of inventory was 3.0 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 January was 25, compared to 9 days in January 2022. The previous 5-year average is 21 days.
While the inventory levels are low, we are starting to see the GTA buyers come back to our local market after those buyers really subsided in the middle to later half of 2022. That is creating multiple offers once again and pushing prices back up in the short term.
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
The Real Estate market is changing very quickly, so If you are thinking of buying or selling this spring, 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 a wonderful February!
Kevin
KW Condos and Lofts.com 