Home Sales Decline but Prices Hold Steady in Kitchener Waterloo and Cambridge

Happy Thanksgiving! I hope you and your family are able to spend a wonderful holiday together. The weather looks great for the rest of weekend and with the leaves starting to turn fall is certainly here.

The stats are out for September and sales were down considerably over last year and the 5 year average, but prices are starting to hold these levels and have been relatively flat the last 2 months.

There were 518 residential homes were sold last month, a decrease of 25.3 per cent compared to September 2021 and 30.8 per cent below the previous 5-year average for the month.

Total residential sales in September included 313 detached (down 18.9 per cent from September 2021), and 94 townhouses (down 39.0 per cent). Sales also included 60 condominium units (down 37.5 per cent) and 51 semi-detached homes (down 8.9 per cent).

Interest rate hikes have continued to put pressure on the housing market as a whole. 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 and a 0.1 per cent increase compared to August 2022.

The average price of a detached home was $862,435. 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 $638,284. This represents a 2.7 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 $455,262. This represents a decrease of 8.5 per cent from September 2021 and a decrease of 2.3 per cent compared to August 2022.
The average sale price for a semi was $637,205. This represents a decrease of 6.5 per cent compared to September 2021 and a decrease of 2.8 per cent compared to August 2022.

MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo	Cambridge
Benchmark Type:	September 2022	Monthly % Change	Yr./Yr. % Change	September 2022	Monthly % Change	Yr./Yr. % Change
Composite	$724,600	-1.3	-6.7	$748,000	-0.4	-3.7
Detached	$807,700	-0.9	-8.4	$768,100	0.4	-5.3
Townhouse	$611,600	-1.1	1.8	$679,300	-5.0	5.8
Apartment	$493,800	-3.9	9.7	$556,600	-3.8	16.5

While sales were down last month, we seem to be 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. Furthermore, the 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).

There were 918 new listings added last month, a decrease of 3.6 per cent compared to September of last year and a 15.9 per cent decrease compared to the previous ten-year average for September.

The total number of homes available for sale in active status at the end of September was 978, an increase of 108.5 per cent compared to September of last year and 35.4 per cent below the previous ten-year average of 1515 listings for September.

The number of months of inventory is up 180.0 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. Average Sales Price – Municipalit