November Insights: Waterloo Region Real Estate
In this edition of our monthly newsletter, we aim to provide you with valuable insights into current market conditions and what they mean for both buyers and sellers.
Market Overview
While the October Waterloo Region Real Estate market was softer than is typical for the Fall season, it was certainly not a case of doom and gloom.
Sales Performance
In October 2023, there were a total of 559 homes sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR). This represents an increase of 12.2% when compared to October 2022 which had very low sales volume. Despite lowish sales numbers, average sales prices remained quite stable in all asset classes, with the exception of condo apartments.
Market Shift
The market continues to transition from the extreme seller’s market of the past few years, to a more balanced state.
Buyer Behavior
Higher interest rates and concerns about affordability have prompted some buyers to adopt a “wait and see” approach. On the other hand, for some savvy buyers, current market dynamics present a unique opportunity to enter the market – to secure their first home or make a move-up purchase. With increased inventory available, buyers now have more choice, and we are seeing more instances of conditions in offers. The deceleration in the market’s pace allows buyers to take a little more time to make decisions.
Bank of Canada Rate Announcement
The next Bank of Canada rate announcement is scheduled for December 6th, and while only time will reveal the bank’s response to economic conditions at that time, there is some speculation that we may have seen that last of rate increases for the time-being. Once rates begin to decrease, perhaps in mid-2024, more would-be buyers are sure to re-enter the market. Because Canada still faces a significant housing shortage, market dynamics could shift back towards a seller’s market when interest rates decrease.
Your Unique Situation
If you’re wondering about the implications of these market shifts for your specific situation, please do not hesitate to reach out to us. We are here to provide guidance and insights tailored to your needs.
Average Sale Prices in October
In October, the average sale price for all residential properties in Waterloo Region was $767,848. This represents a 0.6 per cent increase compared to October 2022 and a 0.1 per cent increase compared to September 2023.
- The average price of a detached home was $890,591. This represents a 1.1 per cent increase from October 2022 and an increase of 0.1 per cent compared to September 2023.
- The average sale price for a townhouse was $644,511. This represents a 1.4 per cent increase from October 2022 and an increase of 0.7 per cent compared to September 2023.
- The average sale price for an apartment-style condominium was $476,166. This represents a decrease of 2.6 per cent from October 2022 and a decrease of 4.8 per cent compared to September 2023.
- The average sale price for a semi was $658,133. This represents an increase of 5.7 per cent compared to October 2022 and a decrease of 2.4 per cent compared to September 2023
We sincerely appreciate your trust and partnership as we navigate the ever-changing waters of the Waterloo Region Real Estate market. If you have any questions or need further assistance, please don’t hesitate to get in touch.
And, as always, if you know of friends, family members or acquaintances, who may need our services, feel free to introduce them to us.
