October 2024 Real Estate Market Stats

Waterloo Region Market Update – October Recap

In October, Waterloo Region saw renewed buyer confidence & balanced market conditions, with 604 homes sold through the MLS® System. This marks a 7.1% increase from October last year, though it remains 14.2% below the ten-year average for the month. This uptick is the first sales increase since May, pointing to renewed demand & activity as we approach year-end.

Breakdown of October Sales & Average Prices:

• Detached Homes: 383 units sold (up 15.4%). The average price was $885,587, reflecting a 0.6% decrease from October 2023 & a 2.9% decrease from September 2024.
• Townhouses: 104 units sold (down 20%). The average price was $643,382, down 0.2% year-over-year but up 7.8% from September 2024.
• Condominiums: 66 units sold (up 1.5%). The average price was $484,429, up 1.8% from October 2023 & down 0.2% from September 2024.
• Semi-Detached Homes: 49 units sold (up 53.1%). The average price was $650,098, a 1.2% decrease from October 2023 & a 0.7% decrease from September 2024.

Overall, the average sale price for all residential properties in Waterloo Region was $779,008, showing a 1.4% increase from October last year but a 1.4% drop from September 2024.

Inventory & Market Activity: 

 In October, 1,144 new listings were added to the MLS®, a 0.3% increase from last year & 19.9% above the ten-year October average. Active listings totaled 1,711, representing a 21% year-over-year increase & 48.5% above the ten-year average. Market-wide inventory rose by 19.2%, with a 3.1-month supply across all property types. Breakdown by property type shows:

• Condominium Apartments: 5.5 months of supply
• Townhouses: 3.8 months of supply
• Detached Homes: 2.5 months of supply

Homes in October took an average of 27 days to sell, longer than the October 2023 average of 21 days & the five-year average of 18 days.

Economic Indicators & Forecasts:

On October 23, the Bank of Canada cut its policy rate by 50 basis points to 3.75%—the largest reduction since March 2020 & the fourth consecutive cut. This move benefits variable mortgage holders & homeowners facing renewals but may prompt some buyers to hold off, anticipating further cuts or the upcoming mortgage reforms set for December 15, 2024.

Looking Ahead:

Scotiabank’s Chief Economist, Jean-Francois Perrault, anticipates a surge in housing market activity in 2025, driven by high demand, construction growth & ongoing rate reductions. For next year, he forecasts a 6-7% increase in home prices (with potential fluctuation) as affordability improves & demand intensifies. As rates drop, some buyers may experience a “fear of missing out” with high demand & limited supply, prompting earlier market entry rather than waiting for further cuts. This balance between securing lower rates & avoiding rising prices may motivate buyers to act quickly for the best options.

Looking Forward:

With the next Bank of Canada rate announcement on December 11, 2024, & strong interest in Waterloo Region properties, a dynamic market is expected in the months ahead. Lower rates, sustained demand & increasing inventory levels offer timely opportunities for both buyers & sellers. If you’re thinking of making a move, now is the perfect time to connect & plan for 2025.