Record Low Home Sales in March for Waterloo Region

I hope you had a nice Easter long weekend with the family last week and got to enjoy some time together making new memories. The Easter bunny came to our place too in the form of 4 new chickens and 2 ducks for our newly constructed coop 🙂

The stats for March came out and Waterloo Region experienced record low home sales. The market is tight for inventory once again and multiple offers are showing up for well priced homes in the 700-900k range. 

Let’s take a look at the numbers….

In March, a total of 596 homes were sold, this represents a decrease of 3.2% compared to the same period last year and a decline of 33.4% compared to the average number of homes sold in the previous 5 years for the same month. 

Despite the challenging market conditions, the first quarter of 2024 saw an increase in home sales, marking an 8.0 per cent rise compared to the previous year. However, these figures still fall short of the first-quarter sales of the past decade. 

While home sales in Waterloo Region hit a record low for March in over two decades, we’re also witnessing a positive trend.   Over the past three months, prices and activity have started to pick up, and I expect this momentum will continue into the spring.    

Total residential sales in March included 344 detached (down 3.9 per cent from March 2023), and 127 townhouses (down 0.8 per cent). Sales also included 86 condominium units (down 1.1 per cent) and 37 semi-detached homes (down 11.9 per cent).  

In March, the average sale price for all residential properties in Waterloo Region was $806,279. This represents a 3.6 per cent increase compared to March 2023 and a 6.6 per cent increase compared to February 2024.  

• The average price of a detached home was $954,342. This represents a 4.9 per cent increase from March 2023 and an increase of 7.3 per cent compared to February 2024.  
• The average sale price for a townhouse was $667,810. This represents a 4.4 per cent increase from March 2023 and an increase of 6.0 per cent compared to February 2024.  
• The average sale price for an apartment-style condominium was $483,085. This represents an increase of 0.3 per cent from March 2023 and an increase of 5.3 per cent compared to February 2024.  
• The average sale price for a semi was $680,039. This represents a decrease of 2.9 per cent compared to March 2023 and an increase of 1.0 per cent compared to February 2024. 

Average Sale Price – Monthly

MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo			Cambridge
Benchmark Type:	March 2024	Monthly % Change	Yr./Yr. % Change	March 2024	Monthly % Change	Yr./Yr. % Change
Composite	$740,900	1.6	0.0	$747,500	0.7	0.9
Detached	$853,800	1.5	1.3	$780,100	0.8	1.1
Townhouse	$614,900	2.3	1.3	$652,400	0.6	2.4
Apartment	$461,900	2.1	-0.7	$490,500	2.8	3.4

Home prices have been gradually increasing since December, which is a typical trend that we see going into a spring market. The rate and extent of further increases will depend on the willingness and patience of potential home buyers who have been waiting for lower interest rates before making their purchase. With the Bank of Canada not anticipated to make any rate changes before its June meeting, some potential home buyers may feel stuck in limbo.  

There were 1,023 new listings added last month, an increase of 18.7 per cent compared to March last year and a 15.9 percent decrease compared to the previous ten-year average for March.  

The total number of homes available for sale in active status at the end of March was 1,081 an increase of 54.0 per cent compared to March of last year and 1.1 per cent below the previous ten-year average of 1,093 listings for March. 

At the end of March, there were 1.9 months of inventory, a 58.3 percent increase compared to last year and 18.8 percent above the previous 10-year average. 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 March was 19, the same number as March 2023. The previous 5-year average was 18 days.   

If you are thinking about buying a new home, It is my belief that we are going to see home prices rise throughout 2024 and once the Bank of Canada starts lowering rates the acceleration of prices will increase as buyers that have been sitting on the sidelines will jump back into the market. 

If you have any questions at all, are thinking of making a move this spring and wondering what your home might be worth, give me a call or text to 519-497-4646 and we can sit down for a coffee and chat about your family’s needs going forward.

Enjoy the rest of your April and the nice weather that is coming. 

Kevin

Average Sales Price – Municipality

Average Sales Price – Township

Monthly Sales By Property Type

Monthly Supply of Homes for Sale

Monthly Supply of Homes for Sale – By Property Type

Monthly Median Sales Price – By Property Type

Monthly Average Sales Price – By Property Type

Monthly Average Days on Market