Waterloo Region Sales Report - October 2022

The release of Waterloo Regions monthly residential sales stats on November 2nd continues to show the effect of rising interest rates on both sales volume and price growth. The holding pattern on prices remained intact, with a minor dip on detached houses, while the average sale price of all housing types combined was up 1.6% from September.

Low Inventory

Listing inventory continues to be deflated with a 1.3 months supply (928 properties at the end of October). That’s 36% below the ten-year average. On October 26th, the Central Bank of Canada raised the Overnight Rate by .5% of a percent despite many analysts having projected a larger rate hike. Guidance from Tiff Macklem the Bank of Canada Governor has suggested that the economy may not grow at all or even begin to recede by the New Year. Sellers recognize that we are perhaps close to the bottom of the value dip. As the economy stutters interest rates will likely begin to ease. As purchasing power is slowly restored, prices will begin working upward. For those who are able, Selling in the traditional Spring market come 2023 may prove to be a better time.

Condominiums See Growth

Buyers can note that condominium sales were the strongest segment of the residential market with a 7% month-over-month price gain. Much like the market of 2018 when rates were rising and purchasing power was diminishing Buyers moved into more affordable properties. The rental market has also continued to remain under price pressure.

Have questions about the real estate market? We’re always available to talk.