Waterloo Region Real Estate Market Update - May 2024
In May, a total of 742 homes were sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR). This marks an 8.1% decrease compared to the same period last year and a 20.0% decline compared to the ten-year average for May.
"Sales dropped across all categories in May, with condo apartments seeing the most significant decrease," said Christal Moura, president of WRAR. "The condo market faces a challenge due to high supply levels, particularly for units with one or fewer bedrooms, where inventory surpasses buyer demand."
The total residential sales in May included 467 detached homes (down 1.3% from May 2023), 134 townhouses (down 3.6%), 82 condominium units (down 34.4%), and 59 semi-detached homes (down 13.2%).
The average sale price for all residential properties in Waterloo Region was $818,507, reflecting a 0.3% decrease from May 2023 but a 2.3% increase from April 2024.
Detached homes averaged $943,859, a 1.9% decrease from May 2023 and a 0.4% increase from April 2024.
Townhouses averaged $653,761, a 6.1% decrease from May 2023 and a 0.9% decrease from April 2024.
Apartment-style condominiums averaged $459,260, a 5.6% decrease from both May 2023 and April 2024.
Semi-detached homes averaged $699,780, a 3.9% decrease from May 2023 but a 5.1% increase from April 2024.
WRAR advises that while average sale prices can indicate long-term trends, they should not be used to assess specific property value changes. The MLS® Home Price Index (HPI) is a more accurate measure of price trends as it mitigates distortions from monthly sales activity variations.
For more information, explore our HPI tool here: [WRAR HPI Tool](https://wrar.ca/hpi/)
"This spring, we've seen a significant rise in the number of apartment-style condos on the market, reaching record highs," Moura stated. "There is a noticeable shift in demand away from smaller condo units, likely influenced by higher interest rates affecting investor activity in this sector."
In May, 1,644 new listings were added to the MLS® System in Waterloo Region, a 28.9% increase from last year and a 15.8% increase compared to the ten-year average.
At the end of May, the total number of homes for sale was 1,741, a 95.8% increase from last year and 27.9% above the ten-year average. Market-wide inventory levels rose by 93.8%, with a 3.1 months' supply of all property types. The condo apartment segment saw the highest inventory increase at 100%, equating to a 6.0 months' supply. Detached homes had a 2.4 months' supply, and townhouses had a 3.6 months' supply.
The average number of days to sell in May was 16, up from 14 days in May 2023, with the five-year average being 15 days.
The President of WRAR highlights the importance of consulting a local REALTOR® when buying or selling property in the Waterloo Region. Their expertise can provide valuable insights into current market conditions, helping individuals make informed decisions aligned with their goals and preferences.
For interactive views of the data, click on any of the graphs below.
