February Sales Down but Prices Remain Steady

I hope you and your family are enjoying a wonderful weekend and survived the house dumping of snow we received last night. The February Real Estate stats are out for Waterloo region and inventory is tight and sales continue to stay low as prices are remaining steady. Lets take a look at the numbers…

Sales volume set a new low for the month of February, with 439 homes sold, representing a decrease of 45.0 per cent compared to February 2022 and 31.5 per cent below the previous 5-year average for the month.

Once again, we experienced record low listing sales in February,  Increased borrowing costs, coupled with a shortage of housing supply and strong demand, have put a strain on prospective buyers as affordability continues to be a top concern; however, home prices have remained stable for the past several months.

Total residential sales in February included 256 detached (down 45.3 per cent from February 2022), and 100 townhouses (down 33.3 per cent). Sales also included 55 condominium units (down 52.6 per cent) and 28 semi-detached homes (down 56.3 per cent).

In February, the average sale price for all residential properties in Waterloo Region was $758,698. This represents a 25.1 per cent decrease compared to February 2022 and a 0.6 per cent decrease compared to January 2023.

• The average price of a detached home was $877,884. This represents a 26.0 per cent decrease from February 2022 and a decrease 0.9 per cent compared to January 2023.
• The average sale price for a townhouse was $642,777. This represents a 25.6 per cent decrease from February 2022 and an increase of 2.7 per cent compared to January 2023.
• The average sale price for an apartment-style condominium was $461,322. This represents a decrease of 19.2 per cent from February 2022 and a decrease of 6.9 per cent compared to January 2023.
• The average sale price for a semi was $667,250. This represents a decrease of 25.8 per cent compared to February 2022 and an increase of 2.6 per cent compared to January 2023.

MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo			Cambridge
Benchmark Type:	February 2023	Monthly % Change	Yr./Yr. % Change	February 2023	Monthly % Change	Yr./Yr. % Change
Composite	$726,500	3.0	-24.2	$742,300	1.6	-25.3
Detached	$822,800	4.2	-24.8	$770,800	1.8	-27.0
Townhouse	$588,500	0.9	-22.3	$637,400	-0.2	-13.8
Apartment	$473,800	-1.6	-14.3	$492,100	0.9	-7.6

Limited supply and the small number of listings coming to the market continues to be a trend within the region. There may be some hesitation for those considering selling their property due to decreased reported sale prices; however, with demand continuing to outpace supply and prices stabilizing, sellers are in a healthy position to make their move coming into a spring market. 

Although prices have fallen more than 20 per cent from their peak in February 2022, they remain significantly higher than three years ago, which is great news for our local market. 

There were 671 new listings added last month, a decrease of 37.1 per cent compared to February of last year and a 24.8 per cent decrease compared to the previous ten-year average for February.

The total number of homes available for sale in active status at the end of February was 692, an increase of 75.2 per cent compared to February of last year and 38.0 per cent below the previous ten-year average of 1117 listings for February.

The number of months of inventory is up 140.0 per cent compared to February of last year, but still historically low at 1.2 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 February was 20, compared to 8 days in February 2022. The previous 5-year average is 16 days. 

Average Sales Price – Municipality

Average Sales Price – Township

Monthly Sales By Property Type

Monthly Supply of Homes for Sale

Monthly Median Sales Price – By Property Type

Monthly Average Sales Price – By Property Type

Monthly Average Days on Market

The Real Estate market is changing very quickly, so If you are thinking of buying or selling this spring,  wondering what the neighbor’s place sold for, or have any questions at all, give me a call, text at 519-497-4646 or shoot me an email to kevinbakerrealestate@gmail.com

Enjoy a wonderful March with your families!

Kevin