We’re back to 2021 with regard to real estate prices here in Waterloo Region. This August was the slowest in 11 years, down 21% on volume compared to the 10 year average. But this is nothing new, our market has been more or less flat or slowly declining for 2 years now. And this in on top of a much more precipitous drop brought on by huge rate increases by the Bank of Canada in the spring of 2022.
Of course, August is one of the slowest months for real estate aside from winter so it isn’t surprising we saw month over month declines across the board aside from apt condos, which were hammered in July and in May. On a yearly basis, prices fell in every category, with detached and semis down 5%. Towns fared a bit better, at -3%, with apt condos falling the most, down 6%.
Again, as in previous months, inventories are in great shape for buyers. Conditions are balanced for detached, with just over 3 months of stock, and for towns at just under 5 months. Semis are still a sellers’ market with under 2 months of listings. Apt condos have moved well into a buyers’ market with over 7 months of available units for sale.
Days on market is roughly a month for detached, with semis moving quicker, at 3 weeks. Towns are taking 5 weeks to sell with apt condos needing a full 7 weeks for the average sale. Looking at these figures it’s clear that there’s a direct correlation with inventory levels.
The fall market will pick up once everyone is back in school. Sales and listings will increase although I’d expect price activity to remain somewhat muted, a trend that has been on-going for month now. The cautious behaviour we’ve seen from the Bank of Canada will continue as events unfold south of the border. Read my local board’s press release here.
