July market update: Prices continue to be down for the 5th month in a row
Posted Aug 8, 2022 11:00:00 AM.
Real estate prices continue to decrease, though at a slower rate than before.
Prices fell through all categories in July, marking the 5th month in a row that this has happened. They are now down 25%, compared to the peak in February.
The average sale price of $743,848 in Kitchener/Waterloo was down 4%. The drops in previous months, however, were actually higher, between 5-8%
“This month looks like it was propped up by strong condo sales; the average apartment-style condo actually sold for 5% higher, compared to last month. This is the first time since March that we have seen the price in any housing category increase,” says Greig Turvey, Sales Representative, GoWylde Team/ReMax. “While I don’t think this is indicative of any kind of major turnaround, I do think it’s a sign that the worst of the correction is behind us.”
Houses that sold did so on average for 100% of the list price. This number is down 5% from June 2022 and down 12% from July of last year.
The average sale price for detached homes in Kitchener/Waterloo in the month of July was $854,255. For attached houses it was $645,861 and for condos and apartments $522,764.
Houses are still selling for over the asking price, though for less than they have in recent memory. About half of the properties that sell are selling over asking by no more than 5-10%—although over 10 properties did sell for 20% above list and one even sold for 31% over list!
“The original list prices, and final sale prices, are still much lower than they would have been a few months ago, but it’s interesting that buyers are still willing to compete for certain properties, despite there being over 800 active listings on the market… about triple what was available in July 2021,” says Turvey.
Compared to the previous month of June 2022, the number of sales dropped 31%. While as we progress into the summer there is always a decrease in the number of sales, a 31% drop is much higher than the 10-15% decrease that one would typically expect.
As mentioned above, there is more inventory available—a trend that is likely to continue through the end of the summer and beyond, says the REALTOR®. Months of inventory increased by 28% to 2.32, a number that has not been seen in a long time.
Says Turvey, “All in all, it’s more of the same. Buyers and sellers are now fully aware of the market we’re in. If you’re looking to buy in a declining market, you need to be very careful and make sure you get a very good deal. Sellers need to understand that the first offer they get will likely be the highest and time is not on their side, with prices dropping by tens of thousands of dollars each month.”
Stay up to date with the latest market trends in Kitchener and Waterloo with real estate agents Brad Wylde and Greig Turvey. Visit the GoWylde Team or call 519-826-7109 for more information.