2022 Home Sales Ends Weaker Here in Waterloo Region

I hope you and your family enjoyed a wonderful holiday season. Other than the huge snow storm just before Christmas Day the weather has been quite nice and warm.

The stats are in for 2022 and it was a crazy year for sure. With interest rates rising faster than we have seen in decades it has put alot of pressure on prices here in Waterloo Region and across Canada.

There were 7,770 homes sold in 2022, a decrease of 24.8 per cent compared to 2021. On a historical basis, 2022 performed lower than previous years, with annual sales down 12.4 per cent compared to the previous 5-year average, and 8.2 per cent below the previous 10-year average.

On a monthly basis, there were 280 homes sold in December, a decrease of 38.7 per cent compared to December 2021, and 32.3 per cent below the previous 5-year average for the month.

The number of homes sold in December was lower than any single month in well over a decade, marking an end to a turbulent year for home sales in Waterloo Region.

Total residential sales in December included 166 detached (down 34.9 per cent from December 2021), and 56 townhouses (down 48.6 per cent). Sales also included 33 condominium units (down 47.6 per cent) and 25 semi-detached homes (down 16.7 per cent).

For 2022, total residential sales included 4,720 detached (down 23.5 per cent), and 1,430 townhouses (down 30.9 per cent). Sales also included 996 condominium units (down 21.9 per cent) and 624 semi-detached homes (down 24.4 per cent).

In December, the average sale price for all residential properties in Waterloo Region was $720,596. This represents a 15.5 per cent decrease compared to December 2021 and a 2.1 per cent decrease compared to November 2022.

The average price of a detached home was $825,450. This represents a 17.6 per cent decrease from December 2021 and a decrease of 1.7 per cent compared to November 2022.
The average sale price for a townhouse was $609,154. This represents a 17.0 per cent decrease from December 2021 and a decrease of 2.1 per cent compared to November 2022.
The average sale price for an apartment-style condominium was $460,994. This represents a decrease of 7.9 per cent from December 2021 and an increase of 1.0 per cent compared to November 2022.
The average sale price for a semi was $616,671. This represents a decrease of 18.7 per cent compared to December 2021 and a decrease of 4.0 per cent compared to November 2022.

On a year-to-date basis, the average sale price for all residential properties in Waterloo Region increased 10.2 per cent to $851,185 compared to 2021.

The year-to-date average price of a detached home was $974,683. This represents an 8.5 per cent increase compared to 2021.
The year-to-date average sale price for a townhouse was $717,490. This represents a 12.1 per cent increase compared to 2021.
The year-to-date average sale price for an apartment-style condominium was $529,516. This represents a 17.8 per cent increase compared to 2021.
The year-to-date average sale price for a semi was $736,020. This represents an increase of 10.9 per cent compared to 2021.

Monthly MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo			Cambridge
Benchmark Type:	December 2022	Monthly % Change	Yr./Yr. % Change	December 2022	Monthly % Change	Yr./Yr. % Change
Composite	$713,400	0.3	-15.0	$713,700	-4.1	-18.0
Detached	$801,300	1.3	-16.3	$736,100	-4.5	-19.8
Townhouse	$594,200	-1.3	-11.0	$639,600	-1.9	-6.0
Apartment	$472,000	-4.2	-0.3	$497,000	-1.4	-0.1

Annual MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo		Cambridge
Benchmark Type:	2022	Yr./Yr. % Change	2022	Yr./Yr. % Change
Composite	$840,900	11.9	$845,000	12.7
Detached	$940,600	11.2	$875,300	11.7
Townhouse	$699,000	18	$739,600	20
Apartment	$536,300	22.5	$553,200	23

After home prices crossed the million-dollar threshold in February of 2022, we close out the year with average and benchmark prices back to where they were prior to them surging in early 2021. It’s clear that the decline in sale prices has been a direct response to the successive interest rate hikes by the Bank of Canada throughout the past several months, however, with interest rates predicted to stabilize, we should see a steadier market in 2023.

There were 302 new listings added in the Waterloo Region last month, a decrease of 20.3 per cent compared to December of last year and a 14.9 per cent decrease compared to the previous ten-year average for December.

In 2022 a record 13,471 new listings were added to WRAR’s MLS® System, an increase of 9.5 per cent compared to 2021, and a 12.2 per cent increase compared to the previous ten-year annual average.

The total number of homes available for sale in active status at the end of December was 575, an increase of 329.1 per cent compared to December of last year and 31.3 per cent below the previous ten-year average of 837 listings for December.

The number of months of inventory is up 350.0 per cent compared to December of last year, but still historically low at 0.9 months. Between 2009 and 2015, December’s average months of inventory was 2.3 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 December was 25, compared to 11 days in December 2021. The previous 5-year average is 24 days.

The average days to sell in 2022 was 14 days, compared to 10 days in 2021 and a previous 5-year average of 19 days.

While future homeowners should benefit from the fact that prices have come down from their extreme highs of early 2022, home affordability will continue to be a concern in 2023. The easing of home prices has not done much to help first-time buyers as soaring borrowing costs have put monthly payments out of reach for many prospective homebuyers.

Waterloo Region remains one of the tightest real estate markets in Canada as measured by months of housing supply. By no means is Waterloo Region a buyer’s market, Our community is in high demand as a sought-after place to live in. And throughout most of 2022, we were working with less than one and a half months of supply of inventory. Combined with rising interest rates, it is still a challenging market for buyers.

Average Sales Price – Municipality