Home sales cooling off in Waterloo Region

A for sale sign sits on the lawn of a house in Toronto in this undated file photo. (Maurice Cacho/CTV News)

Home prices in Waterloo Region continue to cool, according to new numbers released by the Waterloo Region Association of Realtors (WRAR).

In November, 453 homes were sold through the Multiple Listing Service (MLS) System. That’s a decrease of 43.7 per cent compared to the same time last year, and 34.2 per cent below the five-year average for the month.

According to WRAR, 280 detached homes, 78 townhouses, 58 condominium units and 37 semi-detached homes were sold in November.

“Homes sales continued to decrease in November, as they traditionally do at this time of year,” said Megan Bell, the president of WRAR, in a press release. “At the same time, we know ever-increasing homeownership costs are contributing to the decline and putting downward pressure on sales prices which have plateaued since July.”

AVERAGE SALES PRICES

The average sale price for all residential properties in November was $736,024.

The Waterloo Region Association of Realtors said that represents a 10.4 per cent decrease from November 2021.

Here’s a breakdown of the numbers:

• Average sale price of a detached home - $838,609
• Average sale price of a townhouse - $618,669
• Average sale price of a condo - $458,384
• Average sale price of a semi-detached home - $642,328

WHAT’S NEXT

“The Waterloo Region market has been moving towards more of a balanced market throughout the latter part of the year, and November followed that trend,” explained Bell in the release. “We have a long way to go before the pendulum swings into it being a buyer’s market. However, if the Bank of Canada yet again raises its key interest rate on December 7, it is likely to result in fewer buyers competing for more inventory.”

The rate is currently 3.75 per cent.

Forecasters are expecting the central bank to raise it by a quarter or half a percentage point next week.

It would be the sixth consecutive time the Bank of Canada has increased the key interest rate since March.

MORE: BoC expected to end year off with one more rate increase, likely to pause hikes soon

“We are getting closer to the end of this tightening phase but we’re not there yet,” said Tiff Macklem, governor for the Bank of Canada, in October.