Waterloo Region September Stats
For a few years now, these stats were hard to share. I felt as they got crazier every month, first time home buyers got more and more discouraged. The ideas of home ownership should feel achievable and exciting. I am excited to share this month, as September showed promise of moving towards a more balanced market. I do have some hesitation on that, but will share at the end.
Let’s start by differentiating Sales and Prices, because Realtors often say “Sales are Down!” Which leads some people to believe that means prices. I will be sharing both so you can see a full picture.
Residential SALES in September 2022, compared to September 2021:
Detached homes: 313, down 18.9%
Townhomes: 94, down 39%
Semi-detached: 51, down 8.9%
Condo units: 60, down 37.5%
What is causing the drastic decline?
Many blame the ongoing interest rate hikes by the Bank of Canada.
For example, a monthly mortgage payment on $500,000 amortized over 30 years could go from $1,846 at 2% to $2,668 at 5% and therefore affordability and approved purchase amounts also go down.
One thing to consider before we get into September’s average prices - a lot of people bought in 2020 for around 2% on 5 year terms. One has to wonder, what will happen in a few years when they have to renew if mortgage rates continue to climb.
Residential average PRICES in September 2022, compared to September 2021
Detached homes: $862,435, down 7.4%
Townhomes: $638,284, down 2.7%
Semi-detached: $637,205, down 6.5%
Apartment style condo: $455,262, down 8.5%
From August 2022, detached homes average price increase 1.3% and townhomes increased 4.4%. Semi-detached homes decreased 2.8% and condos decreased 2.3%.
Now to the hesitation…I am starting to see holding offers and some multiples again. I am curious to see if the slow down continues, or if we get a fall rush in October now that Summer vacations are over, shock of higher rates are sinking in, prices have decreased from last year, and the goal of a new home for the holidays creep up.
If you have a crystal ball…let me know. Otherwise, let’s make the most out of this ride together!
Any questions about buying, selling or investing? Let’s connect today!