Market cooling providing more opportunity for buyers here in Waterloo Region

I hope you are having a great start to summer and enjoyed the Canada Day Long weekend. I know the golfers have had some mixed weather but for the most part the grass is still nice and green.

The stats are out for June and we have seen some cooling in the real estate market here in Waterloo Region. Listing inventory is growing and it seems that the buyers are staying on the sidelines waiting for rates to come down a little more. Let’s dive into the stats to take a look…

In June, a total of 674 homes were sold, which represents a decrease of 13.7 per cent compared to the same period last year and a decline of 24.8 per cent compared to the average number of homes sold in the previous ten years for the same month.

Total residential sales in June included 424 detached (down 9.6 per cent from June 2023), and 136 townhouses (down 8.7 per cent). Sales also included 66 condominium units (down 44.5 per cent) and 47 semi-detached homes (up 14.6 per cent).

In June, the average sale price for all residential properties in Waterloo Region was $790,945. This represents a 5.8 per cent decrease compared to June 2023 and a 3.3 per cent decrease compared to May 2024.

The average price of a detached home was $900,307. This represents a 10.3 per cent decrease from June 2023 and a decrease of 4.6 per cent compared to May 2024.
The average sale price for a townhouse was $663,642. This represents a 0.6 per cent decrease from June 2023 and an increase of 2.0 per cent compared to May 2024.
The average sale price for an apartment-style condominium was $462,145. This represents a decrease of 1.8 per cent from June 2023 and an increase of 0.5 per cent compared to May 2024.
The average sale price for a semi was $649,353. This represents a decrease of 6.7 per cent compared to June 2023 and a decrease of 7.2 per cent compared to May 2024.

Average Sale Price – Monthly

MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo			Cambridge
Benchmark Type:	June 2024	Monthly % Change	Yr./Yr. % Change	June 2024	Monthly % Change	Yr./Yr. % Change
Composite	$741,500	-1.4	-5.6	$755,200	-0.7	-3.1
Detached	$852,900	-1.6	-5.1	$791,900	-0.6	-3.1
Townhouse	$626,400	-1.2	-3.9	$652,600	-0.7	-0.6
Apartment	$455,800	-0.5	-4.7	$490,600	-1.1	1.6

The average selling price for residential properties has decreased by 5.8 per cent since June 2023, with detached homes showing the most significant drop at 10.3 percent. This indicates a broader softness in the market and a shifting from a Sellers market to a more balanced market at the moment. The silver lining is this presents a more favourable pricing environment for buyers, with more choices, greater flexibility, and the potential to negotiate better deals.

There were 1,431 new listings added last month, an increase of 7.6 per cent compared to June last year and a 10.6 per cent increase compared to the previous ten-year average for June.

The total number of homes available for sale in active status at the end of June was 1,790, an increase of 75.5 per cent compared to June of last year and 31.9 per cent above the previous ten-year average of 1,357 listings for June.

Market-wide inventory levels were up 73.7 per cent, with 3.3 months’ supply for all property types at the end of June. The property type that gained the most inventory was the condo apartment segment, which increased by 103.1 percent. That amounts to 6.5 months’ supply for condo apartments, 2.8 months for detached homes, and 3.2 months for townhouses. The number of months of inventory represents the amount of time it would take to sell off current inventories at the current sales rate.

The average number of days to sell in June was 18, compared to 15 days in June 2023. The previous 5-year average is 15 days.

If you have any questions at all, are thinking of making a move this summer 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 July!

Kevin