January 2024 Market Stats

In January, the Waterloo Region experienced a notable 25.4% year-over-year increase in home sales with 375 properties sold, as reported by WRAR’s MLS® System. Despite this being a traditionally slow month and sales still being 7.4% below the 10-year average, this uplift from last year’s all-time low indicates positive signs of market recovery and improvement.

January residential sales included:

• 206 detached homes, up 15.7% from January 2023, with an average price of $911,262, a 2.9% increase from January 2023 and a 7.5% increase from December 2023.
  
• 85 townhouses, up 39.3%, with an average price of $638,162, a 2.0% increase from January 2023 and a 2.7% increase from December 2023
  
• 56 condominium units, up 30.2%, with an average price of $446,146, a 10.0% decrease from January 2023 and an 8.7% decrease from December 2023.
  
• 19 semi-detached homes, up 11.8%, with an average price of $631,995, a 2.9% decrease from January 2023 and a 3.1% increase from December 2023.
  
• The average residential property sale price in January was $762,174, slightly down by 0.1% from January 2023 but up 3.2% from December 2023.
  
• New listings rose to 720, a 23.5% year-over-year increase, yet 3.9% below the ten-year average for January.
  
• Active listings reached 855, a 33.4% increase from last January but just below the ten-year average.
  
• Homes took longer to sell, averaging 33 days, compared to 25 days in January 2023 and the 5-year average of 20 days.

There is hope of a more stable year ahead. Currently, the Bank of Canada is maintaining a 5.0% benchmark interest rate resulting in relative calm while slowly creating confidence that we’ll see cuts this year. Lower rates mean greater affordability which tends to move home prices higher. However, we may see continued balance as we see lower rates offset by a slowdown in the overall economy. It is expected that housing will experience moderate growth in 2024, with the Bank aiming for a balanced approach. In January, all housing types are witnessing yearly and monthly price gains, except condo apartments, due to their higher supply.

Anticipating potential rate cuts by mid-2024, now is a prime opportunity to buy a home. A combination of recent sales increases, softer prices, and reduced mortgage costs driven by falling long-term bond yields is indicative of a market that is in the early stages of catching fire. This favorable scenario is further enhanced by strong wage growth and high immigration levels, promising to energize the market. Lower rates are likely to attract more buyers, increasing competition and potentially driving up prices. All this indicates that right now might be a really great time to buy.

If you’re considering selling your home this year, contact us today to get the process started. We’d love to hear from you.