Waterloo Region March Market Update
If you’re already a homeowner in Waterloo Region or planning to become one, here is a quick update on the area’s latest real estate market trends from March 2023.
March saw a 1.3 months of supply in the Waterloo Region.
But what does that mean?
Months of supply tells you how many months it would take for all of the homes currently on the market to sell, given the average sales volume. 4-6 months of inventory indicates a more balanced market, less than 4 months means there’s not a lot of inventory available which can drive prices up. More than 6 months of supply means there’s lots of properties available for buyers to chose from which can drive prices down.
How is that number trending vs. last month? Well it’s only up from 1.2 months in February which further perpetuates our supply issue here in the region, but at least with the upcoming Spring market we did see a small uptick, and hopefully that continues.
The average price for a single detached home in Waterloo Region was $910,152 but keep in mind that is the average across all areas. We saw homes move to pending ranging from $400,000 to over $3,000,000 last month.
That average price is down 17.4% vs this time last year, but it is up $2.9% vs last month, so while we have calmed down since last years craze, I believe with rates stabilizing, we are going to see another increase in average prices every month this Spring.
Next, looking at the average original list price to sale price ratio was 104.28% in March. That simply means that properties were selling a little over asking. For example, if a home was listed for $700,000 then on average it would sell for $729,960. Now when you’re looking at this stat, you’ve got to keep in mind that it has a lot to do with the strategy a seller uses when they’re listing their property. Many agents last month went back to the strategy of listing below market value in order to drum up multiple offers. Where this statistic is helpful, is when trying to decide what to offer on a property, along with looking at comparables, when you are in competition to help you from not overpaying.
Now you might be wondering how long it’s taking properties to sell? On average in March in the Region of Waterloo, it was taking 19 days for a property to sell. That is trending up from last year where it took 8 days on average. So just know that if you’re planning to sell your home it’s going to take longer than it has in the past, but we are starting to see things speed up.
Now we all know the hot topic this year has been rates - if you’re thinking about buying real estate in the near future, we just got great news that the Bank of Canada held their policy rate at 4.5 rather than increasing it and we have seen fixed rates coming down. I have seen rates from around 4.59% and up depending if you are going fixed or variable, your personal credit and financial situation and whether you’re getting financing through a bank, mortgage broker or an alternative lender.
Always chat with a trusted mortgage provider to get numbers specific to your situation rather than making assumptions!
So in summary, we are still in a sellers market due to the lack of inventory and although we are starting to see multiple offers again, there are still opportunities to buy with conditions!
If you are looking to get into the market, a great place to start is a condo - many of them are sitting on the market for well over 2 weeks so competition is low. I love this as a 3-5 year plan for people because if and when they are ready to upgrade, they could entertain the opportunity of keeping the condo and renting it out.
If you are looking to buy and keep it as affordable as possible, Cambridge would be the place for you, as it has the lowest prices on average.
At the end of the day, whether you’re buying or selling, your situation is unique to you and a general market update should be taken with a grain of salt. If you want an accurate market analysis for your home or you’re thinking of buying and want to know where your best opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options. I’ll always be straight up so you’re making an informed decision that is best for you. If that would be helpful, click the button below for a no obligation chat!