Waterloo-Kitchener Home Sales Decline in September, Market Moves Towards More Balanced Conditions September 2022
Wednesday Oct 05th, 2022
Residential home sales have dropped over 30% from the 5 year average, the average number of days for a home to sell in September was 23, the 5-year average is 20 and the number of homes for sale in September was 918, which is over 35% below the 10-year market average of 1,515 listings. The lower number of available listings is leading the Waterloo region towards a sellers market, although prices are stabilizing with homes selling closer to their asking price.
WATERLOO REGION, ON (October 5, 2022) —518 residential homes were sold last month through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), a decrease of 25.3 per cent compared to September 2021 and 30.8 per cent below the previous 5-year average for the month.
Total residential sales in September included 313 detached (down 18.9 per cent from September 2021), and 94 townhouses (down 39.0 per cent). Sales also included 60 condominium units (down 37.5 per cent) and 51 semi-detached homes (down 8.9 per cent).
“Home sales continued to decline in the wake of yet another interest rate hike by the Bank of Canada last month,” says Megan Bell, president of WRAR. “The property type that saw the biggest decline in sales was the townhouse segment followed closely by condos, which could indicate there are fewer entry-level buyers in the market due to the higher borrowing costs.”
In September, the average sale price for all residential properties in Waterloo Region was $752,421. This represents a 4.7 per cent decrease compared to September 2021 and a 0.1 per cent increase compared to August 2022.
- The average price of a detached home was $862,435. This represents a 7.4 per cent decrease from September 2021 and an increase of 1.3 per cent compared to August 2022.
- The average sale price for a townhouse was $638,284. This represents a 2.7 per cent decrease from September 2021 and an increase of 4.4 per cent compared to August 2022.
- The average sale price for an apartment-style condominium was $455,262. This represents a decrease of 8.5 per cent from September 2021 and a decrease of 2.3 per cent compared to August 2022.
- The average sale price for a semi was $637,205. This represents a decrease of 6.5 per cent compared to September 2021 and a decrease of 2.8 per cent compared to August 2022.
“While sales were down last month, we seem to be moving towards a more balanced market; buyers now have more inventory to choose from, yet sellers can still expect their properties to sell within a reasonable timeframe. We’re also observing that sale prices are shifting closer to the asking price,” says Bell. Furthermore, she points to the sales-to-new listings ratio of 56.4 per cent in September compared to 70.8 per cent in August. (According to CMHC, a sales-to-new-listings ratio above 55 per cent is associated with a sellers’ market, while an overheating market corresponds to the upper range of a sellers’ market, with a ratio exceeding 70 per cent).
There were 918 new listings added to the MLS® System in the Waterloo Region last month, a decrease of 3.6 per cent compared to September of last year and a 15.9 per cent decrease compared to the previous ten-year average for September.
The total number of homes available for sale in active status at the end of September was 978, an increase of 108.5 per cent compared to September of last year and 35.4 per cent below the previous ten-year average of 1515 listings for September.
The number of months of inventory is up 180.0 per cent compared to September of last year, but still historically low at 1.4 months. Between 2009 and 2015, the average number of months of inventory for September was 3.7 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 September was 23, compared to 10 days in September 2021. The previous 5-year average is 20 days.
Those requiring specific information on property values should contact a local REALTOR®. Working with a Realtor is the best way to get a complete picture of the property and community you are considering.
View our HPI tool here to learn more: https://wrar.ca/hpi/
Click on any of the graphs below for an interactive view.
WRAR cautions that average sale price information can help identify long-term trends but should not be to indicate that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. Months Supply is the inventory of homes for sale at the end of a given month, divided by the average monthly closed sales from the last 12 months. Those requiring specific information on property values should contact a Waterloo Region REALTOR®. REALTORS® have their fingers on the pulse of the market. They know the questions to ask, the areas to probe and what to look for so that you get a complete picture of the property and community you’re considering.
Media Contact: Tania Benninger, Stakeholder Relations, 519-584-1141
The Waterloo Region Association of REALTORS®️ (WRAR) is a new association that has been formed through the recent amalgamation between the Cambridge Association of REALTORS®️ and the Kitchener-Waterloo Association of REALTORS®️. We have a new name, a fresh start, but the same awesome REALTOR®️ community—just better together! While WRAR officially began offering member services on August 1, 2022, the two previous associations have over 150 years of combined experience. We are proud to support the needs of REALTORS®️ and brokerages serving one of Canada’s fastest growing and thriving communities—Waterloo Region.