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