May Sees Increased Buyer and Listing Activity in Waterloo Region

On June 2, 2023, the Waterloo Region Association of REALTORS® (WRAR) reported that 788 homes were sold in May through the Multiple Listing Service® (MLS®) System in the Waterloo Region. This represents a 10.9% decrease compared to the previous year and a decline of 12.6% compared to the average sales for the month over the past five years.

Megan Bell, president of WRAR, noted that the spring market saw strong buyer and listing activity in May. Compared to April, there was a significant increase in listing activity, providing optimism for continued positive momentum into June. However, it's important to highlight that the number of listings added to the MLS® System remains historically low.

In terms of residential sales, 463 detached homes were sold (down 17.6% from May 2022), along with 133 townhouses (down 10.7%). Condominium unit sales accounted for 123 units (up 17.1%), and 67 semi-detached homes were sold (up 1.5%).

The average sale price for all residential properties in Waterloo Region in May was $821,828. This represents a 5.6% decrease compared to May 2022 and a 3.1% increase compared to April 2023.

  • The average price of a detached home was $964,130 (a 2.8% decrease from May 2022 and a 4.2% increase from April 2023).
  • The average sale price for a townhouse was $697,551 (a 2.4% decrease from May 2022 and a 5.0% increase from April 2023).
  • Apartment-style condominiums had an average sale price of $482,926 (an 11.8% decrease from May 2022 and a 1.4% decrease from April 2023).
  • Lastly, the average sale price for a semi-detached home was $726,702 (a 1.1% increase from May 2022 and a 5.8% increase from April 2023).

may average sales price by property type

It's important to note that while average sale price information provides insight into long-term trends, it should not be used to determine the value changes of specific properties. The MLS® Home Price Index (HPI) is a better indicator for gauging price trends as it accounts for changes in the mix of sales activity over time.

The WRAR emphasizes that Waterloo Region properties continue to be in high demand due to the region's diverse economy and desirable community. It remains a seller's market with limited inventory and a relatively low number of new listings. This has resulted in intensified competition for buyers and increasingly competitive offers for sellers.

In May, there were 1,264 new listings added to the MLS® System in Waterloo Region, marking a 32.6% decrease compared to May of the previous year and an 11.8% decrease compared to the ten-year average for May.

At the end of May, the total number of homes available for sale in active status was 900, a decrease of 24.9% compared to May of the previous year and 41.0% below the ten-year average for May, which stood at 1,524 listings.

The number of months of inventory increased by 13.3% compared to May of the previous year, reaching 1.7 months. Although this represents a slight increase, it is still historically low. Months of inventory indicates the estimated time it would take to sell all current inventories at the current sales rate.

In terms of the average number of days to sell, properties took 15 days to sell in May, compared to 11 days in May 2022. This figure aligns closely with the previous five-year average of 16 days.

To learn more about the HPI tool, you can visit the following link: https://wrar.ca/hpi/

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