Real Estate Market Update for July 2023

Here is our Real Estate Market Update for Kitchener-Waterloo, Cambridge, and the surrounding area.

After a very brisk market in early 2023, two Bank of Canada interest rates hikes, one in June and another on July 12, have brought the policy interest rate to 5%, the highest we have seen in Canada since 2001. The Bank of Canada has said that the rate raise was largely due to the strong June Jobs Report which showed an additional 60,000 jobs have been added, tripling the Banks expectations. Further, according to that report, most of these jobs were full-time positions.  

Those with Variable Rate mortgages will see their payments increase and, for those looking to get into the housing market or refinance, fixed rates will now be higher as well. In the short term, we may see Buyers with current pre-approvals looking very actively for a house that suits their requirements so that they can buy, and close, before their current lower rate pre-approval expires in the coming months.  

Total residential sales in June included 468 detached (up 5.9 per cent compared to June 2022), and 149 townhouses (up 4.9 per cent compared to June 2022). Sales also included 118 condominium units (up 22.9 per cent compared to June 2022) and 42 semi-detached homes (down 32.3 per cent compared to June 2022). 

In June, the average sale price for all residential properties in Waterloo Region was $840,017. This stands for a 6.4 per cent increase compared to June 2022 and a 2.0 per cent increase compared to May 2023.  

• The average price of a detached home was $1,006,520. This represents a 10.5 per cent increase from June 2022 and an increase of 4.2 per cent compared to May 2023.  
• The average sale price for a townhouse was $665,551. This is a 0.2 per cent increase from June 2022 and a decrease of 4.4 per cent compared to May 2023. 
• The average sale price for an apartment-style condominium was $470,164. This stands for a decrease of 6.2 per cent from June 2022 and a decrease of 3.3 per cent compared to May 2023.  
• The average sale price for a semi was $691,507. This is a decrease of 1.1 per cent compared to June 2022 and a decrease of 5.0 per cent compared to May 2023. 

When looking at the Average Price of a Single Detached property, it is important to note that this figure is largely due to the Region experiencing a few Luxury Home Sales in June around the 3.8- 5-million-dollar range. These sales, of course, pull the average price up.  

Overall, June numbers show that we could be heading toward a more balanced market, away from the extreme Sellers’ market we have experienced over the past few years. A balanced market is healthy for the region’s Real Estate Market and should be viewed as a positive for both Sellers and Buyers 

As always, if you have questions about this real estate market update and what it means for you and your real estate needs, please do not hesitate to reach out. We are here to help!