Real Estate Market Update – June 2023

The 2023 Waterloo Region Real Estate market has, so far, followed a more typical market activity pattern than what we have witnessed the past 4 years. Since January, when the Bank of Canada paused its interest rate hikes, buyers have increasingly come back to the market, feeling more confident in their decision to buy real estate. 

However, lack of listing inventory in 2023 has continued to result in buyers often finding themselves in competition with others for well-presented properties. Multiple offers are still common in freehold properties, particularly those under $900,000. 

Around Victoria Day Weekend, though, we began to observe some cool down in the number of showings on listings and the number of attendees at open houses. The warmer weather, coupled with the rumblings of a possible interest rate increase on June 7th, seemed to cause some Buyers to pause and watch from sidelines. On June 7th we did, of course, see the Bank of Canada increase the overnight rate by .25 bases points bringing the rate to 4.75%. We anticipate in the coming weeks that many buyers will continue to work to secure a home at the rate in their pre-approval before it expires, but we also expect to see a quieter market in the coming couple of months due to both seasonally typical lower market activity and buyer trepidation about interest rates. 

We expect that once the fall rolls around we will see brisk activity in the market once again, but this may also depend on whether we see another rate hike or not on July 14, the next Bank of Canada Policy Rate Announcement date. 

The latest Waterloo Region Real Estate Market Stats: 

• Total residential sales in May included 463 detached (down 17.6 per cent from May 2022), and 133 townhouses (down 10.7 percent). Sales also included 123 condominium units (up 17.1 per cent) and 67 semi-detached homes (up 1.5 per cent). 
• The average sale price for all residential properties in the Waterloo Region was $821,828. This represents a 5.6 per cent decrease compared to May 2022 and a 3.1 per cent increase compared to April 2023. 
• The average price of a detached home was $964,130. This is a 2.8 per cent decrease from May 2022 and an increase of 4.2 per cent compared to April 2023. 
• The average sale price for a townhouse was $697,7551. This stands for a 2.4 per cent decrease from May 2022 and an increase of 5.0 per cent compared to April 2023. 
• The average sale price for an apartment-style condominium was $482,926. This represents a decrease of 11.8 per cent from May 2022 and a decrease of 1.4 per cent compared to April 2023. 
• The average sale price for a semi was $726,702. This is an increase of 1.1 per cent compared to May 2022 and an increase of 5.8 per cent compared to April 2023.