2022 was a year of ups and downs for the real estate market in the Waterloo region. In this blog post, we will provide an overview of the year and a breakdown of the market for the month of December.

The year started off strong with high sales figures in January and February, but interest rates took a toll, and the market experienced a precipitous decline for the rest of the year. However, towards the end of the year, the market started to level out.

In 2022, there were 7,770 transactions in the Waterloo region, which was a 26.4% decrease compared to 2021. On a historical basis, this represented a decrease of 12.4% compared to the five-year average and 8.2% compared to the previous ten years. Broken down by category, detached homes made up the bulk of the transactions, with 4,720 sales, a 23.5% decrease from 2021. There were 1,430 townhomes sold in 2022, a decrease of 30.9% compared to 2021. Additionally, 996 condominium units were sold, which was down 21.9% compared to 2021. Finally, 624 semi-detached homes were sold, representing a 24.4% decrease.

Looking at the market for the month of December, 280 homes were sold, a 38.7% decrease compared to December 2021. Of these, there were 56 townhomes sold, down 48.6% from the previous year. There were only 33 condominium units sold, which was almost a 50% decrease, and 25 semi-detached homes were sold, down 16.7%.

In December, the average price for all types of homes in the Waterloo region was $720,596, representing a 15.5% decrease compared to December 2021 and a 2.1% decrease compared to November 2022. The average sale price for a detached home was down as well, at $825,540, a 17.6% decrease compared to the same month the previous year and a 1.7% decrease compared to November 2022. The average sale price for a townhouse was $609,154, a 17% decrease compared to December 2021 and a 2.1% decrease compared to November 2022. The average sale price for a condo was $460,994, a 7.9% decrease compared to December 2021 and a 1% increase compared to November 2022. The average sale price for all types of homes in the Waterloo region in December was $616,671, representing an 18.7% decrease compared to the same month the previous year and a 4% decrease compared to November 2022.

There was a record number of new listings brought to the market in 2022, with 13,471, an increase of 9.5% compared to 2021 and 12.2% compared to the previous five-year average. In December, 302 new listings were added to the MLS system in the Waterloo region, which represented a 14.9% decrease compared to the same time last year. There were a total of 575 homes available for sale, an increase of over 350% compared to the same time the previous year. Despite this increase, the market was still at historic lows, with only 0.9 months of inventory, far below the previous ten-year average of 2.3 months of inventory.

In conclusion, the real estate market in the Waterloo Region has experienced significant changes over the past year. The pandemic has influenced the real estate market significantly, leading to low housing supply, high demand, and increasing housing prices. However, there are indications that the market will continue to be hot in 2023, with buyers still seeking to purchase homes despite possible interest rate increases.

If you are a seller, preparing your home for sale would be a crucial step in getting ready for the hot market in February and March. In contrast, buyers must be ready to face competition, with multiple offer situations happening quite often.

In light of these developments, it would be best to stay updated with the latest information on the Waterloo real estate market to make informed decisions. You can check out the linked video for more insights on the current state of the real estate market in Waterloo.

Check out the Video: https://www.youtube.com/watch?v=m665KhSmksI

If You Thought October Was Slow, Well November Was Even Slower for Real Estate Sales in Waterloo Region

November 2022 saw a significant slowdown in real estate sales in the Waterloo Region. According to recent statistics, sales were down by a staggering 43.7% from the previous year, and even worse, below the five-year average of 34.2%. When broken down by property type, detached homes saw a decrease of 38.3%, townhouses were down 57.1%, condominium units decreased by 49.6%, and semi-detached homes were down by 28.8%.

As if that wasn't enough, prices were also down. On average, prices were down 3.6% from the previous month, and on a year-over-year basis, prices were down 10.4%. Specific property types fared no better, with detached homes down 13.1%, townhouses down 12.3%, condominiums down 7.5%, and semi-detached homes down 9.4%.

New listings were also down. There were only 752 new listings, a 6.6% decrease from the previous year, and a 1.3% decrease from October 2022. Although active listings saw an increase of 209.4% compared to last year, the number was still down by 30% compared to the five-year average. The number of months of inventory experienced a shocking 333% increase from virtually no listings on the MLS to some listings. Despite the increase, we are still at historic lows at 1.3 months of inventory.

If you're a buyer, December is the perfect time to take advantage of the slow market. Most people don't want to go out in the snow and cold to buy a home, so you won't have to worry about competing with other buyers for the most part. As for sellers, it's best to hold off on listing your property until the third week of January. People are on vacation, and transactions are expected to be extremely low in the next two to three weeks.

During this time, you can prepare your house for sale by decluttering, painting, and making minor renovations. These simple tasks will make your home more appealing to potential buyers when the market starts to pick up again.

In summary, the real estate market in Waterloo Region experienced a significant slowdown in November 2022. Although it's not ideal for sellers, buyers can take advantage of the slow market to find their dream home. As always, it's essential to consult with a real estate professional for guidance during these uncertain times.

Check out the Video: https://www.youtube.com/watch?v=_hibIap6cW4

491 residential houses were sold last month through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), down 39.7% from October 2021 and 36.24% from the previous 5-year average for the month.

In terms of residential sales overall, 84 townhouses and 310 detached homes (down 38.2% from October 2021) were sold in October (down 45.1 per cent). 64 condominium units (down 36.0%) and 31 semi-detached homes were also sold (down 47.5 per cent).

All residential properties in Waterloo Region sold for an average of $763,630 in October. This is a drop of 8.4% compared to October 2021 and a rise of 1.6% compared to September 2022.

• The average detached home sold for $860,568 on average. This implies a reduction of 0.3% from September 2022 and a fall of 10.6% from October 2021.

• A townhouse sold for an average of $635,197. This implies a reduction of 0.4% from September 2022 and a decrease of 9.0% from October 2021.

• An apartment-style condominium sold for an average of $488,277. This indicates an increase of 7.3% compared to October 2021 and a rise of 3.9% from that time.

• Semis sold for an average price of $624,999. In comparison to October 2021 and September 2022, this implies a reduction of 1.9% and 10.8%, respectively.

In the Waterloo Region, there were 827 new listings uploaded to the MLS® System last month, which is a reduction of 3.3% from October of last year and a 14.3% decrease from the previous ten-year average for October.

At the end of October, there were a total of 928 active listings available for sale, up 134.9% from the same month last year but 34.9% fewer than the previous ten-year average of 1425 listings.

Even though the number of months of inventories is up 160.0% from October of last year to 1.3 months, it is still historically low. The average number of months of inventory in October from 2009 to 2015 was 3.6 months. How long it would take to sell off current inventories at the current sales pace is shown by the number of months of inventory.

In contrast to the 10 days in October 2021, the average number of days to sell in October was 22. 19 days is the preceding 5-year average.

Those in need of detailed information on property values should get in touch with a nearby REALTOR®. The best approach to acquire a thorough understanding of the housing market, your specific property, and the neighbourhood you are contemplating is to work with a Realtor.

Region of Waterloo, Ontario (October 5, 2022) — 518 residential properties were sold last month via the MLS® System of the Waterloo Region Association of REALTORS® (WRAR), which is a decline of 25.3% from September 2021 and a drop of 30.8% from the previous 5-year average for the month.

In terms of total residential sales in September, there were 94 townhouses and 313 detached homes, a decrease of 18.9% from September 2021. (down 39.0 per cent). 60 condominium units (down 37.5%) and 51 semi-detached houses were also sold (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.”  

All residential homes in Waterloo Region sold on average for $752,421 in September. In comparison to August 2022, this reflects a 0.1% rise and a 4.7% decline from September 2021, respectively.

Detached homes sold, on average, $862,435. This reflects a drop of 7.4% from September 2021 and a rise of 1.3% from August 2022.

Townhouses sold for an average of $638,284. This reflects a drop of 2.7% from September 2021 and a rise of 4.4% from August 2022.

Condominiums with an apartment-style layout typically sold for $455,262. This implies a decline of 2.3% compared to August 2022 and a decline of 8.5% from September 2021.

Semis sold for an average of $637,205. In comparison to September 2021 and August 2022, this implies a drop of 2.8% and 6.5%, respectively.

Even though sales were down last month, the market appears to be edging towards a more balanced state; buyers now have more options, but sellers can still count on their houses to sell within a fair amount of time. Additionally, Bell notes, "we are noticing a trend in sale prices toward the asking price. She also mentions the ratio of sales to new listings, which fell from 70.8 percent in August to 56.4% in September. (According to CMHC, a market is considered to be overheating when the sales-to-new-listings ratio exceeds 70%, while a market is considered to be a sellers' market if it is above 55%.)

In the Waterloo Region, there were 918 new listings added to the MLS® System last month, which is a decline of 3.6% from September of last year and a decrease of 15.9% from the previous ten-year average for September.

A total of 978 properties were actively listed for sale as of the end of September, up 108.5% from the same month last year but 35.4% fewer than the 1515 listings seen on average during the prior ten years.

When compared to September of previous year, the number of months of inventory is up 180.0 percent, although it is still historically low at 1.4 months. In September, there were 3.7 months' worth of inventory on average between 2009 and 2015. How long it would take to sell off current inventories at the current sales pace is shown by the number of months of inventory.

In contrast to the 10 days in September 2021, the average number of days to sell in September was 23. 20 days is the preceding 5-year average.

Those in need of detailed information on property values should get in touch with a suitable REALTOR®. The best approach to learn everything there is to know about the home you are thinking about is to work with a Realtor.

If you would like a more comprehenisve breakdown please visit my recent youtube video on the Waterloo Region Real Estate Market Update : https://youtu.be/g9M-hOETZbs