Surge of New Listings in September Against Low Number of Sales

 

Inventory of homes climbs quickly in September

WATERLOO REGION, ON (October 4, 2023) — In September, there were 527 homes sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), representing an increase of 0.2 per cent compared to the previous year and a decline of 27.1 per cent compared to the previous 5-year average for the month.

“The number of homes sold last month was very close to last year’s decade-low for the month of September,” says Megan Bell, president of WRAR.  “At the same time, we had a record number of new listings for the month of September.”     

Median Sale Prices by Property Type

Total residential sales in September included 302 detached (down 4.7 per cent from September 2022), and 122 townhouses (up 25.8 per cent). Sales also included 68 condominium units (up 9.7 per cent) and 33 semi-detached homes (down 34.0 per cent).

In September, the average sale price for all residential properties in Waterloo Region was $757,753. This represents a 0.7 per cent decrease compared to September 2022 and a 0.3 per cent decrease compared to August 2023.

• The average price of a detached home was $876,590. This represents a 1.6 per cent increase from September 2022 and a decrease of 0.5 per cent compared to August 2023.
• The average sale price for a townhouse was $639,816. This represents no change from September 2022 and a decrease of 2.9 per cent compared to August 2023.
• The average sale price for an apartment-style condominium was $500,092. This represents an increase of 9.9 per cent from September 2022 and an increase 3.1 per cent compared to August 2023.
• The average sale price for a semi was $673,764. This represents an increase of 5.4 per cent compared to September 2022 and an increase 0.1 per cent compared to August 2023.

“There was a significant surge of new listings in September, resulting in the largest number of homes being on the market since March 2016,” said Bell. “For buyers with the financing to be house hunting in September, they would have found more favourable conditions in terms of supply than we have seen in a while.”

At the same time, WRAR’s president points to the recent poll the association conducted, which shows over one-quarter of Waterloo Region residents are considering moving to a more affordable location.

“WRAR recently released a report highlighting that Waterloo region’s residents are struggling under the affordability crisis, with four in ten reporting that they live in housing that is unaffordable,” said Bell.

There were 1,400 new listings added to the MLS® System in Waterloo Region last month, an increase of 52.3 per cent compared to September of last year and a 30.5 per cent increase compared to the previous ten-year average for September.

The total number of homes available for sale in active status at the end of September was 1,448, an increase of 48.8 per cent compared to September of last year and 9.5 per cent above the previous ten-year average of 1322 listings for September.

There were 2.6 months of inventory at the end of September, an 85.7 per cent increase compared to last year and 34.7 per cent above the previous 10-year average. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in September was 18, compared to 23 days in September 2022. The previous 5-year average is 20 days. 

With the next scheduled Bank of Canada interest rate announcement set for October 25, buyers might be on the sidelines, waiting to see what unfolds. WRAR understands that some buyers may be unsure about their next steps. That’s why we encourage these buyers to reach out to local Realtors who can provide them with valuable insights about the current state of the local market and cater to their specific needs.