Julie Schmidt, Realtor®
Header Image
Header Image

Bank of Canada Interest Rate Update March 2023

Julie's Market Update

HOME SALES DOWN, PRICES STABILIZING IN FEBRUARY

 

 

WATERLOO REGION, ON (March 3, 2023) —Sales volume through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR) set a low for the month of February, with 439 homes sold, representing a decrease of 45.0 per cent compared to February 2022 and 31.5 per cent below the previous 5-year average for the month.

“Once again, we experienced record low listing sales in February,” says Megan Bell, president of WRAR. “Increased borrowing costs, coupled with a shortage of housing supply and strong demand, have put a strain on prospective buyers as affordability continues to be a top concern; however, home prices have remained stable for the past several months.”

Total residential sales in February included 256 detached (down 45.3 per cent from February 2022), and 100 townhouses (down 33.3 per cent). Sales also included 55 condominium units (down 52.6 per cent) and 28 semi-detached homes (down 56.3 per cent).

In February, the average sale price for all residential properties in Waterloo Region was $758,698. This represents a 25.1 per cent decrease compared to February 2022 and a 0.6 per cent decrease compared to January 2023.

MLS® Home Price Index Benchmark Price

 

Kitchener-Waterloo

Cambridge

Benchmark Type:

February 2023

Monthly % Change

Yr./Yr. % Change

February 2023

Monthly % Change

Yr./Yr. % Change

Composite

$726,500

3.0

-24.2

$742,300

1.6

-25.3

Detached

$822,800

4.2

-24.8

$770,800

1.8

-27.0

Townhouse

$588,500

0.9

-22.3

$637,400

-0.2

-13.8

Apartment

$473,800

-1.6

-14.3

$492,100

0.9

-7.6

“Limited supply and the small number of listings coming to the market continues to be a trend within the region,” says Bell. “There may be some hesitation for those considering selling their property due to decreased reported sale prices; however, with demand continuing to outpace supply and prices stabilizing, sellers are in a healthy position to make their move.”

Bell points out that although prices have fallen more than 20 per cent from their peak in February 2022, they remain significantly higher than three years ago.

There were 671 new listings added to the MLS® System in Waterloo Region last month, a decrease of 37.1 per cent compared to February of last year and a 24.8 per cent decrease compared to the previous ten-year average for February.

The total number of homes available for sale in active status at the end of February was 692, an increase of 75.2 per cent compared to February of last year and 38.0 per cent below the previous ten-year average of 1117 listings for February.

The number of months of inventory is up 140.0 per cent compared to February of last year, but still historically low at 1.2 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in February was 20, compared to 8 days in February 2022. The previous 5-year average is 16 days. 

View our HPI tool here to learn more: https://wrar.ca/hpi/

READ FULL RELEASE:

  • The average price of a detached home was $877,884. This represents a 26.0 per cent decrease from February 2022 and a decrease 0.9 per cent compared to January 2023.
  • The average sale price for a townhouse was $642,777. This represents a 25.6 per cent decrease from February 2022 and an increase of 2.7 per cent compared to January 2023.
  • The average sale price for an apartment-style condominium was $461,322. This represents a decrease of 19.2 per cent from February 2022 and a decrease of 6.9 per cent compared to January 2023.
  • The average sale price for a semi was $667,250. This represents a decrease of 25.8 per cent compared to February 2022 and an increase of 2.6 per cent compared to January 2023.

Home Sales Down, Prices Stabilizing in February - Waterloo Region Association of REALTORS® (wrar.ca)

Source: The Waterloo Region Association of REALTORS®️

The Waterloo Region Association of REALTORS®️ (WRAR) is a new association that has been formed through the recent amalgamation between the Cambridge Association of REALTORS®️ and the Kitchener-Waterloo Association of REALTORS®️. We have a new name, a fresh start, but the same awesome REALTOR®️ community—just better together! While WRAR officially began offering member services on August 1, 2022, the two previous associations have over 150 years of combined experience. We are proud to support the needs of REALTORS®️ and brokerages serving one of Canada’s fastest growing and thriving communities—Waterloo Region.