Real Estate Market Update - June Edition

Waterloo Housing Market Remains Tight As Buyers Reassess What They Can Afford – October 2022 Market Update

Last Updated on December 7, 2022

Waterloo Housing Market Remains Tight As Buyers Reassess What They Can Afford

There were 491 residential homes sold last month through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), a decrease of 39.7 per cent compared to October 2021 and 36.2 per cent below the previous 5-year average for the month.

 

“Unsurprisingly, the pace of home sales continued to slow in October after the Bank of Canada’s sixth straight interest rate hike in September,” says Megan Bell, President of WRAR. “Faced with higher borrowing costs, some buyers have had to re-assess what they can afford. As these buyers get moved to the sidelines, sellers question if now is the best possible time to sell.”

 

Total residential sales in October included 310 detached (down 38.2 per cent from October 2021), and 84 townhouses (down 45.1 per cent). Sales also had 64 condominium units (down 36.0 per cent) and 31 semi-detached homes (down 47.5 per cent).

 

The Average Sale Price Of All Residential Properties Sold In OCTOBER 2022

  • In October, the average sale price for all residential properties in Waterloo Region was $763,630. This represents an 8.4 per cent decrease compared to October 2021 and a 1.6 per cent increase compared to September 2022.
  • The average price of a detached home was $860,568. This represents a 10.6 per cent decrease from October 2021 and a decrease of 0.3 per cent compared to September 2022.
  • The average sale price for a townhouse was $635,197. This represents a 9.0 per cent decrease from October 2021 and a decrease of 0.4 per cent compared to September 2022.
  • The average sale price for an apartment-style condominium was $488,277. This represents an increase of 3.9 per cent from October 2021 and an increase of 7.3 per cent compared to September 2022.
  • The average sale price for a semi was $624,999. This represents a decrease of 10.8 per cent compared to October 2021 and a decrease of 1.9 per cent compared to September 2022.

 

The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $732,200 in October. This represents an 8.8 per cent decrease over October 2021 and a 0.2 per cent decrease compared to September 2022.

  • The benchmark price for a detached home was $807,900. This represents a 10.1 per cent decrease from October 2021 and 0 per cent increase compared to September 2022.
  • The benchmark price for a townhouse is $603,700. This represents a 3.2 per cent decrease from October 2021 and a 1.3 per cent decrease compared to September 2022.
  • The benchmark price for an apartment-style condominium was $494,400. This represents a 6.5 per cent increase from October 2021 and a 0.1 per cent decrease compared to September 2022.

National Highlights

  • National home sales were up 1.3% on a month-over-month basis in October.
  • Actual (not seasonally adjusted) monthly activity came in 36% below October 2021.
  • The number of newly listed properties edged up 2.2% month-over-month.
  • The MLS® Home Price Index (HPI) declined by 1.2% month-over-month and was down 0.8% year-over-year.
  • The actual (not seasonally adjusted) national average sale price posted a 9.9% year-over-year decline in October.

New Home Listings in October 2022

“While there is uncertainty in the minds of consumers about current market conditions, one thing is for certain, Waterloo region’s housing supply remains one of the tightest in the country,” says Bell.  “Buyers may be on the sidelines for now due to affordability, but the underlying demand for housing remains strong.”

There were 827 new listings added to the MLS® System in KW and area last month, a decrease of 3.3 per cent compared to October of last year, and a 14.3 per cent decrease compared to the previous ten-year average for October.

The total number of homes available for sale in active status at the end of October was 928, an increase of 134.9 per cent compared to October of last year, and 34.9 per cent below the previous ten-year average of 1425 listings for October.

The number of months of inventory increased by 160.0 per cent compared to October 2021. Inventory is still historically low at 1.3 months. The average months of inventory from 2009-2015 was 3.6 months. 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 October was 22 days, compared to 10 days in October 2021. The previous 5-year average is 19 days.

We hope you enjoyed our update for this month, and be sure to follow us on Facebook, LinkedIn, and Twitter for more information and updates.

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