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Condo Prices and Sales Continue to fall in Kitchener Waterloo

I hope you and your family are doing well and enjoying the beautiful August weather we are having. Hopefully if you are in town you have also been able to enjoy some wonderful free music at the Kitchener Blues Festival going on all weekend!

The Stats are out for July and things are still trending up on available homes for sale and trending down on average prices throughout the region. The stress of increasing mortgage rates are putting more pressure on the consumers ability to purchase a home which keeps prices from finding a bottom at this point.

There were 550 residential homes were sold in July, a decrease of 32.8 per cent compared to July 2021, and 32.3 per cent below the previous 5-year average for the month. We’re seeing a clear shift in the market and what people can afford to purchase or are willing to pay. On the bright side for buyers, it’s not the extreme sellers’ market it was.

Total residential sales in July included 337 detached (down 30.4 per cent from July 2021), and 112 townhouses (down 32.9 per cent). Sales also included 65 condominium units (down 39.3 per cent) and 36 semi-detached homes (down 41.0 per cent).

In July, the average sale price for all residential properties in Waterloo Region was $752,301. This represents a 1.2 per cent decrease compared to July 2021 and a 4.9 per cent decrease compared to June 2022.

The average price of a detached home was $842,241. This represents a 6.0 per cent decrease from July 2021 and a decrease of 7.0 per cent compared to June 2022.
The average sale price for a townhouse was $642,750. This represents a 3.6 per cent increase from July 2021 and a decrease of 3.3 per cent compared to June 2022.
The average sale price for an apartment-style condominium was $521,731. This represents an increase of 20.4 per cent from July 2021 and an increase of 4.1 per cent compared to June 2022.
The average sale price for a semi was $661,087. This represents an increase of 1.0 per cent compared to July 2021 and a decrease of 5.4 per cent compared to June 2022.

MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo	Cambridge
Benchmark Type:	July 2022	Monthly % Change	Yr./Yr. % Change	July 2022	Monthly % Change	Yr./Yr. % Change
Composite	$749,000	-5.3	1.1	$776,900	-3.9	3.4
Detached	$827,100	-5.6	-0.8	$789,600	-4.2	1.3
Townhouse	$642,500	-5.1	10.5	$760,500	-2.6	17.7
Apartment	$524,800	-2.3	17.4	$584,700	-0.0	20.1

The real estate market is cooling across the province, and we are seeing significantly fewer buyers from the GTA, which is also impacting prices, however, this is not entirely bad news since the previous market was not sustainable. The surprising thing is we are seeing rents continue to rise. The demad for rental properties has increased which is putting pressure there as well.

There were 1,174 new listings added last month, an increase of 34.0 per cent compared to July of last year, and a 9.2 per cent increase compared to the previous ten-year average for July.

The total number of homes available for sale in active status at the end of July was 1,283, an increase of 215.2 per cent compared to July of last year, and 19.5 per cent below the previous ten-year average of 1593 listings for July.

The number of months of inventory was 1.7 months in July, as it was in June. While this is still at historic lows, the last time it was near this range was September of 2019 when it was 1.6 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 July was 18, compared to 11 days in July 2021. The previous 5-year average is 17 days.