In May, the Waterloo Region Association of REALTORS® (WRAR) reported a decrease in home sales compared to the previous year and the five-year average for the month. A total of 788 homes were sold through the Multiple Listing Service® (MLS®) System, representing a 10.9% decrease from the previous year and a 12.6% decline from the five-year average.
Despite the decline in sales, there was robust buyer and listing activity during the spring market in May. Megan Bell, the president of WRAR, expressed optimism that the positive momentum would continue into June. However, it’s important to note that the number of listings added to the MLS® System remained historically low.
The breakdown of residential sales in May included 463 detached homes (down 17.6% from May 2022), 133 townhouses (down 10.7%), 123 condominium units (up 17.1%), and 67 semi-detached homes (up 1.5%).
The average sale price for all residential properties in Waterloo Region in May was $821,828, representing a 5.6% decrease compared to May 2022 but a 3.1% increase compared to April 2023.
Average detached home price now $964,120 in Kitchener-Waterloo, up 4.2% since last month.
Here are the average sale prices for different types of properties in May:
- Detached homes: $964,130 (2.8% decrease from May 2022, 4.2% increase from April 2023)
- Townhouses: $697,551 (2.4% decrease from May 2022, 5.0% increase from April 2023)
- Apartment-style condominiums: $482,926 (11.8% decrease from May 2022, 1.4% decrease from April 2023)
- Semi-detached homes: $726,702 (1.1% increase from May 2022, 5.8% increase from April 2023)
The demand for Waterloo Region properties remained high, resulting in a seller’s market. Limited inventory and a low number of new listings added to the MLS® System led to increased competition among buyers and more competitive offers for sellers.
In May, 1,264 new listings were added to the MLS® System, reflecting a 32.6% decrease compared to the same month in the previous year and an 11.8% decrease compared to the ten-year average for May.
The total number of homes available for sale at the end of May was 900, down 24.9% from May of the previous year and 41.0% below the ten-year average for May.
The number of months of inventory, which indicates how long it would take to sell off current inventories at the current sales rate, increased by 13.3% compared to May of the previous year. However, it remained historically low at 1.7 months.
The average number of days to sell a property in May was 15, compared to 11 days in May 2022 and a five-year average of 16 days.