October K-W Market Update

We hope this finds you keeping well and enjoying the beautiful fall colours.

In this edition of our monthly email newsletter, we’ll provide a snapshot of the status of the Waterloo Region Real Estate Market and what it means for both buyers and sellers.

Market Performance in September 2023

While the market was decidedly quiet in July and August, we had hoped to see a more active market in September, particularly following the September Bank of Canada decision to hold interest rates steady. However, the fall market has been off to a slow start. The number of sales in September was 27.1% below the previous 5-year September average. On the other hand, prices remained stable when compared to both September 2022 and August 2023.

Condo Apartment Sales

One interesting statistic to note (see below) is a sizable increase in the average sale price of condominium apartments. We want to highlight that this increase in average price is due to a couple of high-priced, luxury condominium apartment sales that occurred in September. In reality, there is currently a large and rising inventory of condominium apartments available for sale in the region, and this asset class is generally taking more time to sell. At the moment, buyers are increasingly exploring other affordable options in the freehold market.

Inventory Levels as Market Indicators

It is significant to note that there was 2.6 months of residential listing inventory on the market as of the end of September. This means that if no new listings were to enter the market after September 30, it would take about 2.6 months to sell all existing listings. This is by far the highest level of listing inventory we have seen in the Region since 2015.

Traditionally, analysts use inventory levels to gauge the balance of the market. Less than 3 months of inventory typically indicates a seller’s market, 3-6 months indicates a balanced market, and more than 6 months suggests a buyer’s market. Given the rising inventory level, it appears that we are approaching a more balanced market.

Implications for Sellers and Buyers

For sellers, this shift toward a more balanced market means that expectations need to be adjusted regarding the time it may take to sell a property. With greater choice in the market, it is crucial that your property is presented at its best (clean, decluttered, in a great state of repair and staged) and that it is priced to entice buyers who now have more choice in the marketplace. Sellers should be prepared for a market where competitive offers may not be as prevalent.

Buyers, on the other hand, may, depending on property type and price point, find that they have choice in the market and will enjoy the reduced likelihood of competing offers. Note that this doesn’t necessarily mean significantly reduced prices.  At the moment, prices remain quite stable.

Some September Statistics

• In September, the average sale price for all residential properties in Waterloo Region was $757,753. This represents a 0.7 per cent increase compared to September 2022 and a 0.3 per cent decrease compared to August 2023.
• The average price of a detached home was $876,590. This represents a 1.6 per cent increase from September 2022 and a decrease of 0.5 per cent compared to August 2023.
• The average sale price for a townhouse was $639,816. This represents no change from September 2022 and a decrease of 2.9 per cent compared to August 2023.
• The average sale price for an apartment-style condominium was $500,092. This represents an increase of 9.9 per cent from September 2022 and an increase of 3.1 per cent compared to August 2023. (See commentary in the paragraphs above)
• The average sale price for a semi was $673,764. This represents an increase of 5.4 per cent compared to September 2022 and an increase 0.1 per cent compared to August 2023.

How We Can Assist You

As always, we are here to assist you in navigating these dynamic market conditions and understanding how they apply to your unique circumstances. Please don’t hesitate to reach out if you have any questions or if you’d like to explore your options further.

Thank you for your trust and partnership as we navigate the ever-evolving Waterloo Region Real Estate Market.

You can contact us here.