Real Estate Market Update - June Edition

Waterloo Housing Market Continues to Cool – November 2022 Market Update

Last Updated on December 7, 2022

Waterloo Housing Market Continues to Cool in-November

There were 453 residential homes sold last month through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), a decrease of 43.7 per cent compared to November 2021 and 34.2 per cent below the previous 5-year average for the month.

“Home sales continued to decrease in November, as they traditionally do at this time of year,” says Megan Bell, President of WRAR. “At the same time, we know ever-increasing homeownership costs are contributing to the decline and putting downward pressure on sales prices which have plateaued since July.”

Total residential sales in October included 280 detached (down 38.3 per cent from November 2021), and 78 townhouses (down 57.1 per cent). Sales also had 58 condominium units (down 49.6 per cent) and 37 semi-detached homes (down 28.8 per cent).

The Average Sale Price of All Residential Properties Sold In November 2022

  • In November, the average sale price for all residential properties in Waterloo Region was $736,024. This represents a 10.4 per cent decrease compared to November 2021 and a 3.6 per cent decrease compared to October 2022.
  • The average price of a detached home was $838,609. This represents a 13.1 per cent decrease from November 2021 and a decrease of 3.5 per cent compared to October 2022.
  • The average sale price for a townhouse was $618,669. This represents a 12.3 per cent decrease from November 2021 and a decrease of 2.6 per cent compared to October 2022.
  • The average sale price for an apartment-style condominium was $458,384. This represents a decrease of 7.5 per cent from November 2021 and a decrease of 6.2 per cent compared to October 2022.
  • The average sale price for a semi was $642,328. This represents a decrease of 9.4 per cent compared to November 2021 and an increase of 3.2 per cent compared to October 2022.

 

The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $711,200 in November. This represents an 12.8 per cent decrease over November 2021 and a 1.7 per cent decrease compared to October 2022.

  • The benchmark price for a detached home was $791,000 This represents a 14.8 per cent decrease from November 2021 and 2.1 per cent decrease compared to October 2022.
  • The benchmark price for a townhouse is $602,200. This represents a 7.0 per cent decrease from November 2021 and a 0.2 per cent decrease compared to October 2022.
  • The benchmark price for an apartment-style condominium was $492,600. This represents a 8.0 per cent increase from November 2021 and a 0.4 per cent decrease compared to October 2022.

New Home Listings in November 2022

“The Waterloo Region market has been moving towards more of a balanced market throughout the latter part of the year, and November followed that trend,” says Bell. “We have a long way to go before the pendulum swings into it being a buyer’s market. However, if the Bank of Canada yet again raises its key interest rate on December 7, it is likely to result in fewer buyers competing for more inventory.” 

There were 752 new listings added to the MLS® System in KW and area last month, a decrease of 6.6 per cent compared to November of last year, and a 1.3 per cent increase compared to the previous ten-year average for November.

The total number of homes available for sale in active status at the end of November was 860, an increase of 209.4 per cent compared to November of last year, and 29.9 per cent below the previous ten-year average of 1227 listings for November.

The number of months of inventory increased by 333.3 per cent compared to November 2021. Inventory is still historically low at 1.3 months. The average number of months of inventory from 2009-2015 was 3.2 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 November was 21 days, compared to 10 days in November 2021. The previous 5-year average is 21 days.

WRAR’s president says, “It has never been more important for both buyers and sellers to work with a REALTOR® to help provide expertise during the homebuying and selling process. Affordability, combined with ongoing supply constraints, are making it difficult for buyers to navigate the continuous market changes while sellers are also having to adjust in concurrence with the evolving circumstances”.

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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