In July 2024, the real estate market in Waterloo Region showed signs of both resilience and caution. A total of 639 homes were sold through the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone), marking a 4.6% increase from July 2023. However, this figure represents a 16.6% decrease compared to the average number of homes sold in the past decade for the same month.
Christal Moura, spokesperson for the Waterloo Region market area, noted that the slight year-over-year increase in sales was likely driven by recent interest rate reductions. “In July, we observed a slight increase in home sales year-over-year following a reduction in interest rates, which seems to have provided a modest boost to market activity,” Moura said. Despite this positive movement, many buyers appear to be waiting for further interest rate cuts and potentially better market conditions before making a move.
Residential Sales Breakdown
In terms of property types, the sales figures were as follows:
- Detached homes: 382 units sold, up 4.1% from July 2023.
- Townhouses: 126 units sold, up 5.0% year-over-year.
- Condominium units: 82 units sold, reflecting a 9.3% increase.
- Semi-detached homes: 48 units sold, up 9.1% from the previous year.
Average Sale Prices in July 2024
While sales numbers saw modest increases, the average sale prices for different property types presented a more nuanced picture:
- All residential properties: The average price stood at $782,716, down 1.6% from July 2023 and 0.9% from June 2024.
- Detached homes: Averaged at $914,469, reflecting a slight 0.6% decrease from July 2023 but a 1.6% increase from June 2024.
- Townhouses: Priced at an average of $617,062, down 7.7% from July 2023 and 7.1% from the previous month.
- Condominium apartments: Averaged at $494,897, down 0.6% year-over-year but up 7.1% from June 2024.
- Semi-detached homes: The average price was $667,063, marking a 0.6% decrease from July 2023 but a 2.7% increase from June 2024.
New Listings and Market Inventory
July saw an influx of new listings, with 1,391 properties added to the MLS® System. This represents a 15.9% increase from July 2023 and a significant 27.5% rise compared to the ten-year average for July. The total number of homes available for sale at the end of July reached 1,817, which is 61.9% higher than last year and 38.9% above the decade average.
Inventory Levels and Months of Supply
Market-wide inventory levels surged by 65.0%, with a 3.3-month supply available for all property types. The townhouse segment saw the most significant increase in inventory, with an 85.0% rise, translating to a 3.7-month supply. For condo apartments, the supply was at 5.7 months, while detached homes had a 2.8-month supply. The months of inventory metric indicates the time it would take to sell off current inventory at the current sales pace.
Time on Market
The average time it took to sell a home in July 2024 was 22 days, which is four days longer than in June 2024. Compared to July 2023, where homes sold in 16 days, this year’s figure suggests a slight cooling in market pace, though it remains close to the five-year average of 17 days.
Expert Guidance in a Dynamic Market
As the market continues to evolve, Cornerstone highlights the importance of working with a local REALTOR® when buying or selling property in the Waterloo Region. Their deep understanding of current market trends can help buyers and sellers navigate the complexities of the market, ensuring informed decisions that align with their goals.
Whether you’re considering a move or just keeping an eye on the market, staying informed is key to making the right real estate decisions. Stay tuned for more updates as we continue to monitor the trends shaping the Waterloo Region’s real estate landscape.
