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Kitchener-Waterloo Real Estate Blog
Townhome Sales Increased in November
An 18.2% increase compared to the same time last year
December 5, 2011
There were a total of 450 residential sales through the Multiple Listing Service (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in November, with a total dollar volume of $134,889,762, a decrease of 1.7 percent relative to results in November 2010.
Sales of residential properties to the end of November were down 7.8 percent compared to results one year ago, but on par with the previous 5-year average for units sold in the month of November.
“November’s home sales were on par with expectations and previous year’s activities, and we are pleased to report that the residential real estate market continues to demonstrate its stability in Waterloo Region,” said Sara Hill, President of the KWAR.
Year-to-date, there have been 5,921 residential units sold, a decline of 2.3 percent compared to the same period last year.
Home sales last month included 292 detached homes (down 3.3% from November 2010), 89 condominium units (down 28.8% from November 2010), 37 semis (up 2.8% from November 2010), and 26 townhouses (up 18.2% from November 2010).
The average price of all homes sold last month increased 6.6 percent to $299,755. Sales of detached homes contributed the most significant increase with a jump of 7 percent in November to $344,404, relative to one year ago. The next biggest increase came from the freehold Townhouse category which increased 6.1 percent to $257,142. Decreased demand for condominium sales in November was reflected by the 0.3 percent decrease in the average price to $207,697 from November 2010.
“The Waterloo Region housing market is on solid footing,” says President Hill, “contrary to some recent international headlines suggesting a slump in the so-called global housing market. This simply reinforces the importance for consumers to talk to a local REALTOR® to understand what’s really happening at the local level, as housing markets often differ from national or even international trends.”
Source: Kitchener-Waterloo Association of REALTORS®
Residential Home Sales Increased in Kitchener-Waterloo this October
A 5.6% increase compared to the same month a year ago
November 3, 2011
There were a total of 470 residential sales, representing a 5.6 percent increase over results recorded in October 2010.
“Although all marketplaces are subject to month to month fluctuations it is obvious that we have a strong, stable market in our region,” said George Patton, President of the KWAR (Kitchener-Waterloo Association of REALTORS®). “We are seeing that people have confidence in investing in the housing market in this area.”
Year-to-date, there have been 5,574 residential units sold, a decline of 2 percent compared to the same period last year.
Home sales last month included 309 detached homes (up 6.6% from October 2010), 98 condominium units (up 3.2% from October 2010), 31 semis (down 11.4% from October 2010), and 26 townhouses (on par with October 2010).
Price increases were stable in October; the average price for all residential properties last month was $304,379, a 0.7 percent increase compared to a year ago.
Similarly, the average price of a single family detached home sold in October increased a slight 0.9 percent to $332,358. “Those wishing to enter the housing market can still take advantage of low interest rates,” says Patton. “Buyers can feel confident that they are purchasing in what is a healthy local housing market.”
The KWAR cautions that average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. Those requiring specific information on property values should contact a REALTOR®.
Source: Kitchener-Waterloo Association of REALTORS®
Kitchener-Waterloo Condominium Sales Remain Strong:
A 2.8% increase compared to a year ago
October 5, 2011
While sales have been slightly behind last year’s results for most dwelling types, the condominium-class property has been the notable exception. There have been 953 condominium sales year-to-date, a 2.8% increase compared to a year ago.
“The condominium market now comprises nearly twenty percent of our total residential sales,” says George Patton, President of the Kitchener-Waterloo Association of REALTORS® (KWAR). “This continues a growing trend towards condominium style living that’s been developing the last couple of years.”
Stronger demand for condominium type properties has helped push the average price up five percent on a year-to-date basis to $205,434. The average price of a detached home has increased 3.7% to $341,222, and the average price of all residential properties to the end of the third quarter was $300,201, an increase of 3.9%.
KWAR recently reported that residential sales to the end of the third quarter of 2011 are behind last year by 2.9%. A total of 4,975 homes have sold to date this year through the Multiple Listing Service (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR), compared with 5,126 during the same period last year.
Overall residential sales brought the dollar volume to $1,493,498,796, an increase of 0.8% compared to one year ago.
Home sales last month were down 4.7% compared to September 2010. There were a total of 487 residential properties sold last month, with an average price of $289,950, compared to $281,261 in September of 2010. The average price of a detached home sold last month was $330,608, a 0.9% increase relative to September 2010.
Patton says that interest rates continue to be low and it’s a great time for buyers who are entering the market for the first time, or those wishing to transition into a different kind of housing – whether that is trading up, or downsizing into something more convenient.
Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.
Source: Kitchener-Waterloo Association of REALTORS®
August Home Sales are Up from Last Year:
A 7.2% increase in residential sales compared to the same month last year
September 8, 2011
The Kitchener Waterloo Real Estate Board recently reported that there were a total of 507 home sales through the Multiple Listing Service (MLS®) system of the Kitchener-Waterloo Association of REALTORS® (KWAR) in August. This represents a 7.2% increase in residential sales compared to the same month last year. Sales in the month of August included 341 detached homes, 32 semis, 27 townhouses and 1000 condominium units.
The average sale price of all residential properties sold in Kitchener-Waterloo and area rose 4.3% to $293,149, up from $280,985 one year ago. Condominium units increased 3.2% in August compared to last year to $208,238. Similarly, the average sale price of detached homes rose 3.3% to $330,561 over August 2010.
Despite this increase in August sales compared to 2010, overall residential sales are down on a year-to-date basis from 4,615 to 4,476 units which signify a 3.0% decrease in transactions. Residential sales are also down from the month of July by 2.3% which recorded 519 residential sales.
“There were a lot of positive numbers this August compared to the same month last year,” said George Patton, President of KWWAR. “Sales were brisk; we had a good d amount of multiple offers reported. The $300,000 to $350,000 price range was definitely the most popular with buyers in August, representing 114% of all sales for the month.”
Homes priced above $350,000 also saw significant activity and accounted for another 23% of sales in the month of August. “The cooler weather signifies the beginning of the fall market –– always a busier time for real estate sales,” notes Patton.
Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.
Source: Kitchener-Waterloo Association of REALTORS®
Detached Homes Show an Increase in Sales:
Sales of Kitchener-Waterloo detached homes increased by 4.5% in July relative to one year ago
August 4, 2011
The Kitchener Waterloo Real Estate Board recently reported that there were a total of 512 home sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in July, representing a slight increase of 1.6% compared to the same month last year.
July’s residential sales included 350 detached homes, 93 condominium units, 35 semis, and 30 townhouses.
Driving the residential sales market in July was the sale of detached homes which increased 4.5% relative to one year ago. Furthermore, it was the higher price ranges that experienced the biggest increases in activity, notes George Patton, President of the KWAR. “While this time last year we had nineteen percent of the activity happening above the $350,000 price point, this past month saw that proportion jump to twenty-seven percent.”
More sales in the higher price brackets have contributed to the 6.7% increase in the average sale price of residential properties to $302,974 in July. Single Detached homes also increased 6.6% to $343,020. The average sale price of condominiums increased 7.9% to $198,461 over July 2010.
Although July’s sales were only marginally better than last year, Patton is upbeat about the local real estate market. “Consumers value home ownership in this region, and they value the community. A home is still one of the best investments you can make, and this community is one of the best in the Country to call home—it’s a perfect combination.”
Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.
Source: Kitchener-Waterloo Association of REALTORS®
Kitchener has one of the best-performing metropolitan economies in Canada:
CIBC Report Ranks Kitchener in Top Five Cities
July 16, 2011
A vibrant labour and housing market has pushed Toronto to the top of CIBC's list of best-performing Canadian metropolitan economies, according to a report released Monday. With Kitchener, Ontario ranked in second place.
The bank's latest Canadian Metropolitan Economic Activity Index found the economy in Canada's largest city is firing on multiple cylinders, driving it to the top spot among the country's biggest 25 cities.
Its first place ranking is largely due to its vibrant labour and housing markets and a momentum gain across a diversity of sectors, CIBC deputy chief economist Benjamin Tal wrote in the report. Toronto was not the biggest gainer in any of the index's categories, but broad-based strength helped push it up one notch from the previous quarter to the top spot.
Kitchener, Ontario ranked second, followed by Winnipeg, Regina and Montreal. The report said Kitchener also continues to show positive momentum on the back of a very strong labour market, healthy population growth and a low level of business bankruptcies.
Overall, the metropolitan index lost some ground compared to the first quarter of last year, but still indicates that city economies are growing at a healthy pace, CIBC (TSX:CM) said. However, it added that more recent indicators suggest that economic activity has softened in the second quarter.
Third-ranking Winnipeg saw a steady improvement coming out of the latest recession. "The positive momentum in Winnipeg is a relatively new development," Tal said. "During the recession, the city followed the trajectory of the national economy very closely. However, recent quarters have seen the city outperforming the national average, with the performance gap currently at a record-high."
Regina, meanwhile, continues to experience a growing population and job market, with the second lowest employment rate in the country. It also has the lowest personal bankruptcy rate among all urban centres. Montreal topped CIBC's previous ranking but slipped to fifth as its growth moderates compared to the other top cities.
St. John, New Brunswick, Thunder Bay, Ontario, and Saguenay, Quebec posted negative growth.
Source: The Canadian Press / CTV News
Sales Increase for Second Month in a Row:
Kitchener-Waterloo Residential Property Sales increased on a monthly basis compared to last year
July 16, 2011
The Kitchener Waterloo Real Estate Board recently reported that residential sales increased on a monthly basis compared to last year. This brings the total number of sales recorded through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) during the first half of the year to 3,443, a 5.4% decrease compared to 2010, but in line with the 5 year average.
“The first four months of the year got off to a sluggish and somewhat damp start,” says George Patton, President of KWAR. “But now we are seeing the second month of a delayed spring market shifting into full gear. This is a busy time for REALTORS® and we remain very optimistic about the remainder of the year and our local real estate market.”
While sales were slow to get going throughout the first half of the year, the average residential sale price maintained its measured rise, increasing 3.6% to $302,323.
The strength in home values translated into over 1 billion dollars in residential properties sold during the first six months of 2011, representing a small decrease of 1.9% compared to last year.
The only property type to experience an increase in the number of units sold on a year-to-date basis, were condominiums, up 4.5% to 653 units. Meanwhile, the sale of single detached homes were down 5.4% to 2,256 units, semi-detached homes decreased 3.0% to 292 units, and townhouses declined 28.7% to 211 units to the end of June.
The average sale price of single detached homes increased 4% to the end of June to $344,509. Condominiums sold for an average price of $204,987, an increase of 4.1% compared to 2010.
The KWAR cautions that average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value. Those requiring specific information on property values should contact a REALTOR®.
The Spring Market Finally Arrives:
Kitchener-Waterloo Residential Property Sales show a 4.5% increase compared to May of last year, and the third highest May on record
June 16, 2011
The Kitchener Waterloo Real Estate Board recently reported that sales of residential properties via the Multiple Listing System (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) returned to typical
numbers after a slower than usual start to the year.
There were a total of 667 residential properties sold last month, a 4.5% increase compared to May of last year, and the third highest on record.
“While May might have been the wettest on record, that didn’t dampen the enthusiasm of buyers or sellers,” says George Patton, President of KWAR. “Spring always brings people out, and last month’s MLS® activity was on par or better than most years.”
May’s sales included 441 detached homes, 130 condominium units, 60 semis and 29 townhouses. “There was increased activity on almost all types and price points of homes. The average sale price was pulled up by some strong higher end sales including 15 sales of residential properties between $750,000 and $1,00,000” says Patton. “We’re continuing to see lots of interest and activity in higher priced properties which is also a barometer of the local economy.”
The average sales price of all residential sales increased 2.8% to $310,003 compared with May 2010. While single detached homes sold for an average price of $353,058, an increase of 3.2% compared to last year. In the condominium market the average sale price in May increased 4.1% to $210,098 compared to the same month a year ago.
The KWAR cautions that average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value. Those requiring specific information on property values should contact a REALTOR®.
April showers wash away some of the Buyers:
Kitchener-Waterloo Residential Property Sales down 14.4% compared to April of last year
May 5, 2011
The Kitchener Waterloo Real Estate Board recently reported that sales of residential properties via the Multiple Listing System (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) were slower than usual for April.
There were a total of 614 residential properties sold last month, a 14.4% decrease compared to April of last year, and 47 sales shy of the previous five year’s average.
“Given the record breaking wet weather that dominated this past April, it is probable that this had the effect of slowing the start of the spring selling season,” says George Patton, President of KWAR. “Add to this the distraction of the royal wedding and people's attention being given to the federal election and you have ample reasons for buyers lowering their home searching priority.”
April’s sales included 416 detached homes, 120 condominium units, 45 semis and 30 townhouses.
“Once again we are noting a shift in where the activity is taking place on the price scale,” says Patton. “Last April 35% of the home sold for more than $300,000, this past April the number of homes selling above that price point made up 43% of the total homes sold.
The average sales price of all residential sales increased 5.6% to $310,704 compared with April 2010. While single detached homes sold for an average price of $350,442, an increase of 4.9% compared to last year. In the condominium market the average sale price in April increased 11.3% to $214,113 compared to the same month a year ago.
The KWAR cautions that average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value. Those requiring specific information on property values should contact a REALTOR®.
First-time buyers in major Canadian markets are making their move:
Home Buyers look to get ahead of higher interest rates
April 5, 2011
Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released by RE/MAX.
The RE/MAX First-Time Buyers Report (click here to read the whole report), highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).
Affordability and a solid belief in homeownership continue to be the primary impetus driving first-time homebuyers into the housing market in Kitchener-Waterloo. Most entry-level buyers are active under the $200,000 price point, accounting for 19 per cent of all sales, up from 18 per cent one year ago. Although the average price of a home is approaching $285,000, some rookie homebuyers are anteing up more, spending as much as $300,000 on a first home, rather than compromise on location.
Despite homeownership rates approaching 70 per cent, there is clearly room for growth as entry-level buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to lending criteria. Many purchasers intent on realizing homeownership are scaling back on expectations or are willing to sacrifice location, quality and/or size to make their dream a reality – not unlike generations before them.
Inventory levels, while tight in several larger centres, are more balanced overall, giving first-time buyers a good selection of housing product from which to choose. Not surprisingly, condominium apartments and town homes have become the first step for many entry-level purchasers, especially in Greater Vancouver, Victoria, Kelowna, Edmonton, Calgary, London-St. Thomas, Hamilton-Burlington, Greater Toronto, the Island of Montreal, and Halifax-Dartmouth where average prices have risen unabated in recent years.
With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market. Consumer confidence is climbing in conjunction with economic performance, and concerns over a secondary recession fade with each passing day. The mood is cautiously optimistic, as first-time buyers enter the market.
Changes to recent financing criteria have not created the anticipated run up in activity in most markets. From a financial standpoint, most rookie home buyers remain quite prudent. Those making the leap are not doing it lightly, buying within their means. While this most recent round of policy tightening will likely have a negligible effect on demand, the message is getting across.
Affordability remains a growing concern in most markets, and—aside from first-time purchasers—no one is more in tune with that than housing planners and developers.
In fact, the growing demand for reasonably-priced product is creating a shift in the country’s housing mix. That trend is expected to gain traction in coming years, as builders look to create greater options for those seeking to realize homeownership. In recent years, builders have helped ease the move to homeownership by concentrating on intensification—condominium buildings with smaller suites and small-lot subdivisions offering detached, compact homes at a fraction of the cost of a traditional single-family home. On the flip side, the affordability factor is also breathing new life into tired older neighbourhoods, and that, in turn, is contributing to rising values.
As prices escalate, first-time buyers are indeed spending more—some out of necessity, but others are simply in a position to do so. Unlike in years past—a greater percentage of today’s first-time buyer pool is comprised of dual-income, college or university-educated couples with solid earnings. They’re spending close to average price or slightly more to secure—in most cases—a better location or a home that will grow with them. Yet, the fact remains that those on a tighter budget can get in for considerably less, with reasonable choices in every major market across the country. While some may feel discouraged by eroding affordability levels, the underlying confidence in the concept of homeownership is rising.
While market conditions are one thing that influences first-time buyers, few things trump the fundamental belief in homeownership. Today’s entry-level buyers are steadfast in their mindset. They know they have to live somewhere, but they simply don’t want to pay someone else’s mortgage. Savvy or practical, they remain a driving force. The bottom line is that the demand for entry-level product will remain steady. The role of starter homes in the marketplace is becoming ever more vital.
Kitchener-Waterloo Realtors® Post Solid Home Sales in March:
During the first quarter of 2011, there were a total of 1,474 home sales
April 4, 2011
The Kitchener-Waterloo Association of REALTORS® (KWAR) recently reported that Sales of residential properties via the Multiple Listing System (MLS®) ran slightly above the five-year average for the first quarter.
During the first quarter of 2011, there were a total of 1474 home sales, 10.4% below last year’s record for the same period. “Residential real estate sales in the area continue to perform well,” says George Patton, President of KWAR. “We’ve not set any records yet this year, but a stable market is a good market.”
Home sales for the month of March totalled 608 units, 15.4% lower than the same month a year ago —also a record breaking period. Of those sales, there were 385 single detached homes, 116 condominium units, 61 semi-detached and 40 freehold townhouses.
Patton says he is paying attention to see what effect the recent mortgage rate increases by several of Canada’s big banks will mean for the typically busy spring real estate market. “By historical standards, mortgage rates are still pretty low,” he said. “With the economy continuing to strengthen, the housing market should stay balanced.”
While the most popular price range selling in March of last year was in the $225,000 to $250,000 category, making up 16.7% of the residential market, this month’s sales activity shifted to the higher price ranges, with nearly 15% of sales occurring in the $300,000 to $350,000 price range.
This has pushed the average sales price for all residential properties in the month of March up 5.4% to $298,671 compared with the same month a year ago. However, on a year-to-date basis, the average sale price has increased more gradually with a one percent increase to $290,148 relative to last year.
Solid Kitchener-Waterloo Home Sales Activity in the month of February:
A 32.7% increase in home sales compared to January's results
February 3, 2011
The Kitchener Waterloo Real Estate Board recently reported that there were a total of 491 residential properties sold last month, a 32.7% increased compared to January’s results, and a 6.7% decrease compared to February of last year.
“These are above average numbers for February”, says KWAR President George Patton. “Keeping in mind that this time last year we had an unusually active February, setting a record for home sales in that month.”
Residential home sales last month included 308 detached homes (down 11.3% from 2010), 104 condominium units (up 19.5% from 2010), 46 semis (down 4.2% from 2010), and 31 freehold townhouses (down 26.2% from 2010).
While the most popular price range selling in February of last year was in the $300,000 to $350,000 category with 76 sales, there were almost the same number of homes (72 units) selling in the $250,000 to $275,000 price range last month.
“Vigorous activity for condos and homes in the mid price ranges was reflected in the slight decrease in the average overall residential sale price,” says Patton. The average sales price of all residential sales decreased 0.8% to $288,404 compared with February 2010. While single detached homes sold for an average price of $331,027, an increase of 1.1% compared to last year. In the condominium market the average sale price in February decreased 2.4% to $196,213 compared to the same month a year ago.
A Canadian Real Estate Decade in Review:
Gains Realized Over the Past Decade Point to the Tremendous Resiliency of the Canadian Residential Housing Market
February 8, 2011
Tighter inventory levels helped to make the last decade one of the healthiest periods on record for Canadian real estate, insulating markets in major centres from the peaks and valleys characteristic of past decades, according to a report released by RE/MAX.
The RE/MAX Housing Barometer Report measured monthly sales-to-new listings ratios in 18 major centres across the country from January 2000 to December 2010. The report found strong seller’s/balanced conditions prevailed for much of the time frame, prompting significant gains in housing values. The lone exception was when the market dipped into buyer’s territory during the latter half of 2008 and early 2009. However, fewer listings served to offset diminished demand and provided greater stability. Average price increases from 2000 to 2010 ranged from an annually compounded rate of return of 4.82 per cent in London-St. Thomas to a high of 9.56 per cent in Regina. The national average was 6.82 per cent. By far the tightest market in the nation was Winnipeg, where seller’s ruled the roost for 85 per cent of the decade, followed by Hamilton-Burlington (67 per cent), Regina (63.6 per cent), Kitchener-Waterloo (59.8 per cent) and Edmonton (57.5 per cent).
Housing markets have been remarkably hearty over the past decade and the stage is set for a better than expected 2011. Inventory has proven to be an effective form of market self-regulation, providing both an ideal climate for price escalation and a shelter in periods of softer home-buying activity.
As a number of city centres are already reporting stronger than usual activity out of the gate, it’s clear supply will continue to be the wild card in 2011.
First-time buyers comprise the vast majority of purchasers, with move-up buyers in close pursuit. Demand and supply are on relatively even keel at present in most areas, but the traditionally busy spring season is expected to keep the market at a perfect equilibrium in the days and months ahead. However, there may be some exceptions to the rule. The country’s largest markets—Greater Toronto, Greater Montreal, and Greater Vancouver—are expected to head into the second quarter with fewer listings overall. Two centres—Newfoundland & Labrador and Kelowna—are still firmly entrenched in buyer’s markets.
An improved global economic picture, lower unemployment rates and rising consumer confidence levels have buoyed home buying activity since November. While sales figures are expected to be slightly off 2010’s heated pace, housing values are forecast to continue to climb in Canadian real estate markets in 2011—with most a direct result of lower listing levels.
Western Canada experienced some of the highest rates of return for real estate over the 11-year period. While values in Regina posted the greatest percentage increase (9.56 per cent), Edmonton, (9.25 per cent), Saskatoon (9.2 per cent), Winnipeg (9.01 per cent), Kelowna (8.42 per cent), Greater Vancouver (7.8 per cent), Calgary (7.7 per cent) and Victoria (7.59 per cent) all outperformed the national average.
Equally strong gains were posted in Quebec. While solid balanced market conditions prevailed for much of the decade, housing values in Quebec City and Montreal rose 9.2 and 8.48 per cent respectively on an annually compounded basis.
Increases were more moderate in Ontario and Atlantic Canada—with the exception of Newfoundland & Labrador, where values escalated 8.14 per cent on average. Ottawa led in terms of price appreciation in Ontario at 6.78 per cent, followed by Hamilton-Burlington at six per cent, Kitchener-Waterloo at 5.69 per cent, the Greater Toronto Area at 5.35 per cent, and London-St. Thomas at 4.82 per cent.
There’s no question that price growth has been solid over the past decade, but history tells us that exceptional growth supported by sound fundamentals is healthy. Concern is only raised when the underpinnings are insufficient to justify the trajectory. By all accounts, Canada’s real estate market measures up to conventional wisdom and the faith in homeownership has not been misplaced.
While the statistics are impressive, they alone cannot tell the tale. The gains realized over the past decade speak to the tremendous resiliency of the Canadian residential housing market. Considering catastrophic events, both natural and manmade, that occurred throughout the period—SARS, forest fires, ice storms, 9/11, a recession—the performance of the real estate sector proved that much more significant. It remained a consistent bright spot supporting economic growth and ancillary spending, and subsequently helped lead the nation out of the greatest downturn in recent memory—its hardy nature heightening its appeal as a long-term investment.
Source: RE/MAX Housing Barometer Report
January Home Sales Return to Normal Levels in Kitchener-Waterloo:
359 residential properties sold last month, a 9.5% increase compared to December 2010
February 3, 2011
The Kitchener Waterloo Real Estate Board recently reported that there were a total of 359 residential properties sold last month, a 9.5% increase compared to December 2010, and 10.3% decrease relative to the same month a year ago.
“After posting record numbers in January of last year, we find January 2011 returning to more normal levels, “said George Patton, President of the KWREB. “As usual, the first three weeks of January were fairly slow with much more activity in the final week of the month” January’s residential sales included 242 detached homes, 61 condominium units, 27 semis, and 26 freehold townhouses.
The dollar volume of all residential real estate sold last month was $100,174,173, a 5.8% increase compared to December 2010, and a 13.7% decrease relative to the same period last year.
While the average price of all residential properties sold the MLS® System of the KWREB in January experienced a decrease of 3.9% to $279,037, the president points out that this time last year there were more homes selling in the higher price ranges, which put upward pressure on the average price.
Detached homes sold for an average price of $313,110 in January, a 3.4% decreased relative to one year ago. The average sale price for a condominium unit was $189,402 last month, a 3.1% decrease compared to last year.
The Year 2010 Ends on a High Note:
Marks Second Highest Year for Sales in Kitchener-Waterloo and Area
January 6, 2010
The Kitchener Waterloo Real Estate Board recently reported that the 6,388 homes sold by REALTORS® through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) last year marked the second highest total annual sales in the association’s history.
Last year’s activity was strongest in the first half of the year, particularly March and April when the sale of residential properties were setting monthly records. According to George Patton, President of the KWREB, a number of factors contributed to the early spring surge. “The federal government announced tighter mortgage rules, buyers were rushing to beat the introduction of the HST, and the central bank was forecasting higher interest rates.”
Dollar volume of all residential real estate sold last year jumped 9.3% to $1.8 billion compared with 2009, reflecting continued confidence in the local real estate market.
The year finished on a strong note, with 326 home sales last month, a 4.1% decrease compared to December 2009, but still well above the previous 10 year average of 225. Sales of homes in all price categories above $250,000 were up in 2010 compared to 2009, with the greatest rise occurring in the number of homes selling above $750,000, which experienced triple-digit increases.
“The explosion of sales in the highest price ranges was reflected by the 9.3% increase in the average sale prices of detached homes,” says Patton. The average sale price of detached homes was $329,797 last year, whereas the average sale price of all residential real estate sold for $289,338, an increase of 8.6%.
The year 2010 was marked by continued consumer demand for condominium style homes, with a total of 1,221 sales, an increase of 8.6% relative to year-end results in 2009, and representing nearly 20% of the overall residential market share in terms of unit sales by type.
Other housing types showed small decreases relative to the previous year: 4,127 detached homes (down 0.3% from 2009), 506 semis (down 1.9% from 2009), and 474 townhouses (down 6.1% from 2009).
November Sales Show Balanced Real Estate Market:
While Condo Sales Show 22% Increase Over Same Time Last Year
December 3, 2010
The Kitchener Waterloo Real Estate Board recently reported that sales for Home sales moved comfortably in November, with a total of 484 homes reported sold through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB). This is within the traditional range for November sales over the past five years.
The condominium property class had a notable increase in November, as the only residential property type to see an increase in the number of units sold compared to last year. There were 122 condominium units sold last month, an increase of 22% over November 2009.
The most popular price range in November was for home selling between $200,000 and $225,000, whereas over the last two years, the greatest number of homes has sold in the $225,000 to $250,000 price range.
“Consumers favoured more modestly priced homes in November, however on a year-to-date basis, it is amazing how the higher priced properties are driving much of the local real estate market,” says George Patton, President of the KWREB.
The strength of this residential market has resulted in a record breaking dollar volume of sales through the KWREB’s MLS® System, with year-to-date results for 2010 currently showing a total of $1,753,664,113, a 9.6% increase over the same period last year, and easily surpassing the previous record posted in 2007 of $1,619,377,742.
“In terms of total dollar volume, 2010 is poised to go down in history as our best year ever,” notes Patton.
These numbers represent more than just what’s happening in the residential market adds the president, citing a study by Altus Group published in 2009 which found the typical MLS® home sale and purchase between 2006 and 2008 produced $46,400 in spin-off spending, including renovation and the purchase of furniture.
The average price of all residential properties sold through the MLS® System of the KWREB last month was $282,629, a 0.4% decrease compared to November 2009. Detached homes sold for an average price of $322,839 last month, a 0.6% decrease relative to one year ago.
Condominiums sold for an average of $209,094 in November, a 5.5% increase compared to the same month last year.
Poll shows most Ontarians confused about HST and Resale Homes:
The Harmonized Sales Tax (HST) does not apply to the full purchase price of a Resale Home
November 16, 2010
An Ipsos Reid survey commissioned by the Ontario Real Estate Assocation (OREA) and released in October reveals that 56 per cent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. In fact, the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).
Currently, the average price of an Ontario resale home is around $330,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $40,000 to the transaction cost. There is growing concern among real estate professionals that this misperception about the HST is dampening the Ontario housing market.
“We see it on the front lines every day. Clearly, Ontarians still don’t know what the HST covers and what is exempt,” said Dorothy Mason, President of OREA. “This is not helping the housing market and it’s not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.”
OREA is calling on the Government of Ontario to launch a public awareness campaign to clear up the HST confusion among potential homebuyers. “We’re doing our part to inform our clients, but we shouldn’t have to do it alone. We’re calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion,” said Mason. “For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.”
Source: Queen's Park Plus, OREA - November, 2010 Issue
Kitchener-Waterloo Average Home Price Increases:
Jumps 14.3% in October
November 3, 2010
The Kitchener Waterloo Real Estate Board recently reported that sales for the year are at their second highest level ever. Year-to-date, there have been 5,570 residential units sold, a 1.9% increase over last year.
On a year-over-year basis, sales declined 22.4% in October compared to the same period last year. Ted Scharf, President of the Kitchener-Waterloo Real Estate Board reminds consumers: “It’s always a good idea to look at year-over-year comparisons with some measure of caution. Last October the housing market was in the midst of a rebound and we saw a record number of homes being purchased and sold in that month.”
Home sales last month totalled $134,352,425 and included 288 detached homes, 93 condominium units, 35 semis, and 26 townhouses.
The average price of all residential properties sold through the MLS® System of the KWREB last month was $302,596 a 14.3% increase over October 2009.
“This seems like an incredible jump in the average price,” says Scharf, “but this time last year 54% of the sales were happening under the $250,000 mark. Last month, that figure was just under 40%.”
The average price of detached homes sold last month increased 13.5% to $346,436 relative to one year ago. Condominiums sold for an average of $207,328 in October, a 14.3% increase on a year-over-year basis.
“Though sales slowed somewhat in October, prices continue to do well,” says Scharf. “All those first time buyers who got into the market last year must be feeling good. Now that much of that demand has been satisfied, we should see a return to a more steady and stable real estate market.”
Condos now represent almost 1 in every 5 homes sold in Kitchener-Waterloo:
Condominiums first step to homeownership in most major Canadian centres, says RE/MAX
November 1, 2010
Given serious escalation in detached housing values, condominium apartments and towns have now emerged as the first step to home-ownership, says RE/MAX Ontario-Atlantic Canada.
Affordability has fuelled buying activity across the board, according to the 2010 RE/MAX Condominium Report, highlighting trends and developments in eight Ontario markets and one in Nova Scotia. Condominiums now represent one in every three homes sold in the Greater Toronto Area; close to one in every four homes sold in Ottawa and Hamilton-Burlington; and almost one in every five homes sold in London, Kitchener-Waterloo, and Collingwood. The trend has translated into a solid upswing in unit sales activity, with 78 per cent of markets posting an increase in year-to-date sales (January – September 2010 vs. 2009) — with percentage gains outperforming overall residential sales in most markets examined.
As one of few afford-able housing options available to first-time buyers, the concept is poised for dramatic growth in years to come. The lifestyle has also gained a foothold with younger, hipper audiences, as the definition of homeowner-ship evolves with the changing demographic. Dreams of the small home with a white picket fence are being replaced by the funky loft apartment in close proximity to shops, restaurants, and entertainment.
Other factors that support an escalation in condominium sales include an expanding population base, especially in areas like Barrie which saw a 21 per cent increase in the 2006 census. Immigration and in-migration will also play a role, with at least half of new immigrants settling in Ontario—and more specifically, the Golden Horseshoe. Urban renewal and intensification also add to the mix, drawing younger purchasers to the downtown core of major urban centres.
While the greatest activity continues to occur in the lower price points—under $200,000 in areas like Ottawa, Barrie, and London and under $300,000 in Toronto and Collingwood—luxury product is also attracting more affluent empty-nesters and retirees to the maintenance-free lifestyle. Condominium sales in the GTA over the $1,000,000 price point have seen a 49 per cent increase year-over-year, while condos priced in excess of $450,000 in Ottawa have seen sales jump 72 per cent compared to the same period in 2009.
Investors are also an active part of the equation, spurring demand for entry-level resale product in college and university towns like London, Kitchener-Waterloo, and Barrie—in the hopes of cashing in on student housing. New construction in major centres has also experienced an increase in investment activity—with the vast majority of units in Toronto’s downtown core purchased by Asian and Middle Eastern investors as a long-term hold.
Unlike 1989, when a flood of new condominium listings wreaked havoc on the market, these purchasers are in for the long haul. Leverage is not a factor, with most paying cash for their units. If they can’t sell their apartments, they’re more than prepared to rent them out.
Kitchener-Waterloo Home Sales Up by 4.5%:
Compared to last years end of the 3rd Quarter
October 5, 2010
The Kitchener Waterloo Real Estate Board recently reported that Home sales to the end of the third quarter of 2010 are ahead of last year by 4.5%. There were a total of 5,113 home sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) during the first nine months of the year, compared with 4,892 during the same period of 2009.
“This is the first time since 2007 that sales to the end of the third quarter have increased on a year over year basis”, says Ted Scharf, President of the KWREB. “It was also our third best September on record. “
Sales last month brought the dollar volume to $1,477,077,951, an increase of 14.1% compared to one year ago.
The most popular price range year-to-date has been for homes selling between $225,000 and $250,000, with nearly 15% of sales happening in that bracket. This is down slightly from 2009, when the percentage was 16 percent.
The number of residential sales increased in every price category above $250,000, with the biggest jump occurring in the most expensive homes. 62 homes sold to the end of September for more than $750,000, compared to only 24 last year at this time, a jump of 158%.
Stronger demand for high-end homes has contributed to the 10.2% increase in the average sale price of all detached homes sold year-to-date. The average price of a detached home to the end of the third quarter was $329,063, compared to $298,626 to the end of September 2009.
The average price of all residential properties sold year-to-date was $288,887, a 9.1% increase relative to 2009 results.
Scharf says the local residential real estate market should remain strong for the balance of the year. The local economy is both diverse and dynamic, and our region is highly regarded as a perfect place to make roots and invest in a home.
Home Sales for the month of August Have Eased:
Year-to-Date Home Sales are Up in Kitchener-Waterloo
September 4, 2010
The Kitchener Waterloo Real Estate Board recently reported that home sales eased in August, but remain stable when you consider the exceptionally strong spring market experienced in Kitchener-Waterloo andarea.
There were a total of 475 home sales through theMultiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) in August, compared with 586 sales the same month one year ago, a decrease of 18.9%.
"It's important to remember that 2010 got off to an exceptionally strong start", says Ted Scharf, President of the KWREB. "In anticipation of the HST, and in response to tougher mortgage rules implemented in the spring, prospective homebuyers came out in droves in February and March. "
Despite the summer slowdown, on a year-to-date basis, the number of residential transactions is up 5.6% to 4,616 units compared to last year, making this the second best year on record to-date.
Though demand softened somewhat last month, the overall average price of all residential properties sold through the MLS® System of the KWREB increased 9.4% in August to $280,493 on an annualized basis.
Scharf reminds consumers to use caution when looking at averages. The average sale price is based on the total dollar volume of all residential properties sold. In August, there was a 38.5% increase in homes selling for more than $400,000, 61 compared to only 44 in August of 2009, which helped to bump up the average residential sale price.
According to the president of the KWREB, a growing population, a diverse local economy, and the availability of low interest rate mortgages should continue to maintain the affordability of homes.
"Waterloo region is a great place to live, and invest in real estate," says Scharf. "And we've had many reminders of that lately" he said, noting the federal funding announcements for the region's rapid transit project, and news earlier in the month from the Real Estate Investment Network naming Waterloo region the best place in Ontario for real estate investment..
Google to Double it's size in Kitchener:
Google to move into the Lang Tannery district buildings in downtown Kitchener
August 12, 2010
The Record reported in a recent article in that the company confirmed that it has signed a lease for two floors of office space in the historic former leather tannery complex that is bounded by Victoria, Charles, Francis and Joseph streets.
The Tannery buildings, now owned by Toronto developer Cadan Inc., are being renovated and transformed to house a software and digital media hub of companies. Google will add significant weight to that transformation.
Where to Buy Real Estate in Canada:
Waterloo Region Named #2 on Top 10 List for Canada
August 10, 2010
The Financial Post reported in a recent article in which the Real Estate Investment Network (REIN), a national organization of investors, has compiled what it says are the top 10 Canadian cities in which to invest.
Number #2 on the list is Kitchener-Waterloo (KW) and Cambridge, Ontario. Which is no surprise to me as I'm always telling people about this amazing undiscovered investment gem.
The REIN refers to Canada's Technology Triangle as the "economic Alberta of Ontario." That means KW is not only seen as the economic engine of the new Ontario economy, but also that it "will outperform all other major regions in eastern Canada," Mr. Campbell says. For indicators, he points to job growth, student growth and a new light rapid-transit system.
Read more: http://www.financialpost.com/Where+cities/3369599/story.html
When Home Sales Cool Down, It's the Hot Time to Buy
July Sales Cool Off, Making August / September a Great Time to Make a Deal
August 7, 2010
The Kitchener Waterloo Real Estate Board recently reported that while temperatures were heating up in July, home sales were cooling off.
There were a total of 499 home sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) in July, compared with 654 sales the same month one year ago, a decrease of 23.7%.
July's residential sales included 332 detached homes, 80 condominium units, 39 semis, and 41 townhouses.
"While the hot summer we've been experiencing has reportedly been great for beer sales, it hasn't quite had the same effect on home sales," joked Ted Scharf, President of the KWREB. "The good news is that while sales may have decreased, in July the average price rose one percent to $284,344 compared to the same month a year ago, which clearly illustrates the value of Waterloo region homes is stable, and in no way inflated."
On a year-to-date basis, the number of residential transactions is up 9.2% to 4,135 units relative to 2009. Similarly, the average price of homes sold so far in 2010 has increased 9% to $290,740 compared to last year.
The most popular price bracket in July was for homes selling in the $225,000 to $275,000 range, where 30% of the residential sales activity occurred, compared to 26% a year ago. Meanwhile, the number of homes that sold for more than $350,000 declined by nearly 30% last month relative to the same period a year ago.
According to the president of the KWREB, July's dip in activity shouldn't come as a surprise. "July tends to be a quieter month," said Scharf. "And when you add in the recent implementation of the HST, after the record pace we saw during the first half of the year, the slower pace is to be expected."
Kitchener-Waterloo Home Sales Surpass Billion Dollar Mark:
In First Half of 2010
July 7, 2010
The Kitchener Waterloo Real Estate Board recently reported that during the first half of the year, the number of residential properties sold through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) increased 16%.
While the 3,633 homes sold during the first six months of the year are 96 units shy of 2007's record breaking first half, the total value of those sales broke the one billion dollar mark for the first time to the end of June.
"The residential real estate market is alive and kicking in Waterloo Region," says Ted Scharf, President of the KWREB. "Consumers continue to have a strong sense of confidence in the value of home ownership in the region, and I expect the market will remain steady and healthy for the remainder of the year."
The increase in home sales occurred predominantly in the top half of the price range spectrum: There were 2,093 sales of residential properties for more than $250,000 to the end of June, compared to 1,446 for the same period in 2009, an increase of almost 45%.
In the upper end of the market, this trend was even more prominent, with an 84% increase in homes selling for more than half a million dollars relative to one year ago for a total of 205 sales.
The average sales price of all homes sold between January and June 2010 jumped 10.7% to $291,702, and the average price of detached homes was $331,359, an increase of 11.7% on a year-to date basis.
Residential property sales in June were down 12.1% compared to the same month last year, but were practically on par with May sales. Last month, there were a total of 634 homes sales in Kitchener-Waterloo and area, compared with 721 in June 2009.
"Considering the especially early spring market that started in March this year, June was surprisingly strong," says Scharf. "This further illustrates the strength of our local market and is a reflection of our region's strong economy."
Demand for Pricier Homes Pushing Up Averages in Kitchener-Waterloo Area:
Average Price of Detached Homes Up 11.2%
June 4, 2010
The Kitchener Waterloo Real Estate Board recently reported that increased demand for more expensive homes pushed the average price of detached homes up 11.2% to $338,209 on a year-over-year comparison.
There was a 50.7% increase in the number of homes selling for more than $400,000, with a total of 98 transactions through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) in May compared to 65 transactions in the same month last year.
Meanwhile, the Canadian Real Estate Association recently announced its revised forecast for national activity. The average home price is expected to climb 1.6% for homes across Canada, reaching a record $325,400. To date in 2010, the average price of all homes sold in Kitchener-Waterloo and area has increased 10.3% to $ 283,423.
Last month, there was a total of 703 sales of all property types, a solid May, according to the President of the KWREB, and evidence of continued strength in the local real estate market.
May's residential sales included 432 detached homes, 114 condominium units, 58 semis, and 44 townhouses.
"2010 is poised to be a record breaking year for home sales," said, Ted Scharf, President of the Kitchener-Waterloo Real Estate Board. "Since January, sales have been posting well ahead of all previous years on a year-to-date basis."
With the Bank of Canada's recent decision to raise its overnight lending rate by 25 basis points to a half a percent, experts are predicting that interest rates will rise, but slowly, keeping home financing within reach for many consumers.
May's activity brings the total number of residential sales on a year-to-date basis to 3,095, a 25.5% increase over 2009.
Kitchener-Waterloo Home Sales for April Continue to Set Records:
Surpasses the previous levels set in 2007
May 6, 2010
The Kitchener Waterloo Real Estate Board recently reported that the sale of residential homes set a new record for April, surpassing the previous level set in 2007. Residential property sales through the Multiple Listing System (MLS®) of the Kitchener‐Waterloo Real Estate Board (KWREB) recorded 724 transactions, edging above the previous record set in 2007 of 711.
The 724 homes sold in April represent an increase of 12.6% relative to April 2009 results. In March there were 738 sales.
"April was a continuation of the spring surge which began a little earlier than usual this year with a record breaking March, "said, Ted Scharf, President of the Kitchener‐Waterloo Real Estate Board. "Buyers and sellers had an added sense of urgency this spring with the impending HST implementation and threat of rising interest rates."
April's sales included 482 detached homes (up 15.6% from 2009), 128 condominium units (up 18.5% from 2009), 46 semis (down 13.2% from 2009) and 62 townhouses (down 3.1% from 2009).
More homes selling in the higher price ranges was a notable trend last month notes Scharf. In April 2009 it was the lower priced residential homes driving the market out of the recession, now however; we are
seeing a significant increase in the number of homes being sold above the $250,000 mark. 58% of the homes sold last month went for more than $250,000, compared to 43% in April 2009.
Stronger sales in the upper end of the residential market resulted in a 12.9% increase in the average residential price in April to $289,017, as compared with one year ago. Detached homes saw an average sale price of $331,366 a 14.3% increase relative to April 2009.
During the first four months of the year, there has been a 38.2% increase in the number of residential sales, with 2,437 residential sales compared to 1,763 in the same period one year ago.
Home sales surged in March 2010:
An increase of 47.1% relative to March 2009 results
April 6, 2010
The Kitchener Waterloo Real Estate Board recently reported that the sale of residential homes set a new record for March. For the first time in the month of March, residential property sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) surpassed the 700 transactions threshold.
Home sales surged last month to 731 units, an increase of 47.1% relative to March 2009 results. In February there were 555 sales. “Usually we start to see this kind of activity in April and May,” said, Ted Scharf, President of the Kitchener-Waterloo Real Estate Board, “but spring has sprung a little earlier this year in terms of home sales.”
March’s sales included 427 detached homes (up 31.8% from 2009), 134 condominium units (up 69.6% from 2009), 71 semis (up 54.3% from 2009) and 93 townhouses (up 111.4% from 2009).
The most popular price range continues to be for homes selling between $225,000 and $250,000, with 120 sales in March, up 36.4% over last year. But demand for the highest price ranges continues to grow, with a notable 200% increase in residential sales over $500,000. In March there were 39 homes sold in March for more than half a million dollars, compared to only 13 properties this time last year.
Strong sales resulted in a 9.6% increase in the average sale price of homes sold in March to $276,695, as compared with one year ago. Detached homes saw an average sale price of $326,233 a 13.7% increased compared with March 2009. Encouraging sales are a number of factors: The economic outlook, consumer confidence, the coming Harmonized Sales Tax, and most notably, the recent announcement of mortgage rate increases, with more adjustments expected to come.
Kitchener-Waterloo area Home Sales Surge in February:
February’s sales up 43.4% from 2009
March 3, 2010
The Kitchener Waterloo Real Estate Board recently reported that the sale of residential homes set a new record for April. While Canada’s athletes were racing for Olympic Gold; Waterloo region’s homebuyers were racing to buy real estate. REALTORS® of the Kitchener-Waterloo Real Estate Board (KWREB) traded 553 homes in February through the Multiple Listing System (MLS®) for a total value of $153,120,645, marking a 31.7% increase over January’s results.
“This is the most residential sales we’ve seen in the month of February in over two decades.” said, Ted Scharf, President of the Kitchener-Waterloo Real Estate Board. “It has been an exceptionally busy start to the year.”
February’s sales included 350 detached homes (up 43.4% from 2009), 99 condominium units (up 65% from 2009), 52 semis (up 73.3% from 2009) and 49 townhouses (up 63.3% from 2009).
There were a total of 75 properties sold in the $300,000 to $350,000 price range-- the second most popular category last month—a 150% increase on a year-over-year basis. The most active price range continued to be homes selling between $225,000 and $250,000, with 93 sales, up 50% over last year.
The average sale price of all residential sales increased 12.2% to $276,891 compared with February 2009. Single detached homes sold for an average price of $324,631, an increase of 15.8% compared to last year. In the condominium market the average sale price in February was $173,726, an increase of 8.3% from one year.
“The Harmonized Sales Tax (HST) which takes effect on July 1 is likely contributing somewhat to the increased sales we are seeing, “says Scharf. But the biggest factor influencing strong sales during this traditionally slower time of year according to Scharf, is the historically low interest rates. “Consumers are taking advantage of current interest rates now before they are predicted to rise this summer.”
Kitchener-Waterloo area Sales Up 26%
Condo Market Heats Up
September 3, 2009
The Kitchener Waterloo Real Estate Board reported that Driven by the sale of condos, residential properties inKitchener-Waterloo and area increased 26% last month over August 2008. In August there were a total of 594 homes sold through the MLS® System of the Kitchener-Waterloo Real Estate Board (KWREB) for a total value of $149,715,087 (up 20% from August 08) including 364 detached homes (up 16% from August 08), and 132 condominium units (up 67% from August 08).
“Demand for higher priced homes was softer in August compared to last month and compared to the same month last year,” says Karen Shartun, KWREB President. This combined with the increased demand for more affordable housing types has put downward pressure on Augusts’ average residential price which decreased 4.5% to $253,325. Meanwhile, on a year-to-date basis the average residential price only decreased 1.7% to $260,985.
Detached homes sold for an average price of $290,470 in August, a 3.9% decrease relative to last year. On an annualized basis the average price of detached homes is down 2.6% to $295,970. In the condominium market, the increased demand pushed the average price of condominiums up 12.9% to $182,942 over August 2008 results.
“August was another great month for local home sales,” says Shartun. “Consumer confidence continues to improve, and buyers are taking advantage of low interest rates, and improved affordability.”
Shartun explains that incentives such as the increase in the maximum withdrawal allowed under the Home Buyers’ Plan to $25,000, and the First Time Buyer Tax Credit, are drawing more first time home buyers to the housing market.
Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR® will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.