518 homes were sold September 2022 through MLS® System of the Waterloo Region Association of REALTORS®, a decrease of 25 per cent compared to September 2021 and 31 per cent below the previous 5-year average for the month. The number of months of inventory is up 180 per cent compared to September of last year, but still historically low at 1.4 months. Between 2009 and 2015, the average number of months of inventory for September was 3.7 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 September was 23, compared to 10 days in September 2021. The previous 5-year average is 20 days.
Total residential sales in September included 313 detached (down 19 per cent from September 2021), and 94 townhouses (down 39 per cent). Sales also included 60 condominium units (down 37.5 per cent) and 51 semi-detached homes (down 9 per cent).
According to WRAR, home sales continued to decline in the wake of another interest rate hike by the Bank of Canada last month. The property type that saw the biggest decline in sales was the townhouse segment followed closely by condos, which could indicate there are fewer entry-level buyers in the market due to the higher borrowing costs.
In September, the average sale price for all residential properties in Waterloo Region was $752,421. This represents a 4.7 per cent decrease compared to September 2021.
The average price of a detached home was $862K. This represents a 7.4 per cent decrease from September 2021 and an increase of 1.3 per cent compared to August 2022.
The average sale price for a townhouse was $6388K. This represents a 3 per cent decrease from September 2021 and an increase of 4.4 per cent compared to August 2022.
The average sale price for an apartment-style condominium was $455K. This represents a decrease of 9 per cent from September 2021 and a decrease of 2 per cent compared to August 2022.
The average sale price for a semi was $637K. This represents a decrease of 7 per cent compared to September 2021 and a decrease of 3 per cent compared to August 2022. It seems we are moving towards a more balanced market; buyers now have more inventory to choose from, yet sellers can still expect their properties to sell within a reasonable timeframe. We’re also observing that sale prices are shifting closer to the asking price. Sales-to-new listings ratio of 56.4 per cent in September compared to 70.8 per cent in August. (According to CMHC, a sales-to-new-listings ratio above 55 per cent is associated with a sellers’ market, while an overheating market corresponds to the upper range of a sellers’ market, with a ratio exceeding 70 per cent).
If you are looking for a professional advise what to buy and how to sell, please contact the brokerage.