Home sales and prices decrease in Waterloo Region this year

The average price for a home in the region for 2023 is $751,999 which is down 7.73 per cent from the previous year.

According to Wahi’s 2023 Housing Snapshot Report, which gives insight and analyzes data from Waterloo Region Real Estate Markets, the region is seeing a short drop in prices year-over-year.

Wahi’s report includes all four local townships and three cities.

Wahi’s CEO Benjy Katchen said the current state of the market is more balanced for consumers.

“It gives a little bit more ability for consumers to take back control and put those conditions in place to safeguard them while their buying what is usually for most people, the biggest purchase of their life,” said Katchen.

He added that they use the report to inform consumers of bidding strategies when they’re in the market and want to make an offer.

“I think the number one issue, not just facing Waterloo Region but facing Canadians right now is housing supply and affordability.”

The report gathers regional housing data between Jan. 1 and Nov. 15, 2023.

Neighbourhoods like central Waterloo, Columbia and Laurentian West had the most home sales in the region this year. The most sought-after neighbourhoods in the region included Grand River South, Hillcrest and Centreville Chicopee.

The report states that home prices were down on an annual basis in all parts of the region.

Katchen added that he thinks prices have decreased year-over-year because of a combination with the lack of supply combined with fewer buyers being able to afford a home.

An average condo price in the region was $505,250 which is down 8.14 per cent from last year. Sales were also down by 11.5 per cent.

“Condos are relatively affordable, I think its an interesting way for people who may not be on the housing ladder to get into the housing market,” said Katchen. “It’s actually an affordable entry point.”

Katchen said they have also seen a larger supply of houses available for purchase which is giving buyers more time to decide then previously.

“I think that a bit of pause on the market and the increasing amount of inventory actually allows consumers to slow the buying process down just a little bit,” added Katchen.

The most searched for term on the Wahi’s website and phone app was for a house with a separate entrance. Katchen said that is a huge indicator of what people are looking to buy and why.

“I find that very interesting because it means it directly relates to the challenge of affordability, many people are trying to find that extra basement apartment or separate suite or duplex, triplex so they can have that extra income to help them make their payments every month, so they can actually afford to get into the market,” said Katchen.

According to the report, it states the City of Kitchener has a median sold price of $640,000 which is one of the only major cities across the province where the bidding is at the asking price.

“We analyze the bidding trends of many regions, sub-regions and neighbourhoods all across Ontario,” said Katchen. “What we do is compare what our sellers are asking for their house or condo and what was ultimately paid. What we found over time is the degree of over and underbidding is one of many indicators of how robust a particular area is.”

Katchen added “they have $600,000 for a condo and consumers are typically bidding two to five per cent underneath that in order to get it. But, [in] Kitchener they’re actually paying that price, which means they’re actually selling for what sellers are asking in Kitchener and its one of the only places across Ontario that we’re seeing that right now,” said Katchen.

The most popular section on the report is Wahi’s most-viewed listings of the year in Waterloo Region. It lists the three most searched for condos and the three most searched for houses. All of which had one common theme this year, affordability.

Two of the most popular listings were located within the Green Acre Park RV and motorhome community, which according to Wahi, offers lower price points than traditional homes.

“What that just tells me once again is its not the million-dollar mansion that the majority of consumers are searching for. They’re trying to find a rung on the housing ladder, the’re trying to find that affordable first condo to buy for around $400,000 or maybe even land where they can build something,” said Katchen.

The full Wahi 2023 Housing Snapshot Report for Waterloo Region can be found here.