December 2023 Market Stats

In 2023, home sales in the Waterloo Region, recorded through the MLS® System of WRAR, totalled 6,623, marking a 14.8% drop from 2022 and a 23.2% fall from the five-year average.

In December, 285 homes were sold, showing a 0.7% decrease from December 2022 and a 25.6% decline from the five-year average for the month.

For the second consecutive year, higher interest rates have significantly impacted Waterloo Region’s housing market, leading to the lowest annual sales in over 20 years. This trend, mirrored in December’s slowdown, marks the first time since 2000 that annual sales in the region have fallen below 7,000 units.

In December, the average sale price for residential properties in Waterloo Region was $740,697, up 2.8% from December 2022 but down 2.1% from November 2023.

On a year-to-date basis, the average sale price for all residential properties in Waterloo Region decreased 7.7 % to $786,033 compared to 2022.

Total residential sales in December included:

• Detached home sales totalled 172, a 3.6% increase from December 2022. The average price for these homes was $848,151, up 2.6% from December 2022 but down 4.7% from November 2023. The year-to-date average price for detached homes was $917,907, reflecting a 6.1% decrease from 2022. Over the year, there were 3,901 detached homes sold, marking a 17.0% decrease compared to 2022.
• 54 townhouses were sold, a 6.9% decrease from the previous year, with 1,339 sold in 2023, down 6.5%. The average sale price for a townhouse was $617,023, up 0.8% from December 2022 and 1.2% from November 2023. The year-to-date average sale price was $653,138, a 9.0% decrease compared to 2022.
• Condominium sales increased by 2.9% to 35 units, though the annual total was 904 units, down 9.2% from the previous year. The average sale price for an apartment-style condominium was $490,816, a 5.0% increase from December 2022 and a 9.0% increase from November 2023. The year-to-date average sale price was $481,877, showing a 9.0% decrease compared to 2022.
• 24 semi-detached homes were sold, a 4.0% decrease, contributing to a total of 457 sold in the year, down 26.6%. The average sale price for a semi-detached home was $613,283, showing a 0.5% decrease from both December 2022 and November 2023. The year-to-date average sale price was $677,831, a 7.9% decrease compared to 2022.

The housing market in Waterloo Region is slowing, mirroring broader economic trends. Last month, there were 287 new listings, a decrease of 6.2% from December last year and 17.9% below the ten-year average for December. Homes took an average of 30 days to sell in December, longer than the 25 days in December 2022 and the five-year average of 23 days. Throughout 2023, the average selling time was 19 days, compared to 14 days in 2022 and a five-year average of 18 days.

The dream of homeownership is becoming increasingly challenging as housing accessibility declines in our region. This situation underscores the critical necessity to not just construct more homes but also to create a variety of housing solutions that cater to different financial capabilities, ensuring every individual has access to a suitable and affordable home.

In the financial landscape, the Bank of Canada is poised to make an important announcement regarding the overnight rate target on January 24, 2024. This will coincide with the release of a detailed economic and inflation outlook in the Monetary Policy Report, which will also address possible risks. With expectations of potential rate cuts by the Bank of Canada as the year unfolds, a recent report predicts a surge in Canadian home prices in the near future, possibly revitalizing the housing market.

For insights into the current real estate market or for guidance on buying or selling a home, please feel free to reach out to us. We’d love to hear from you!