Residential real estate sales in Kitchener and Waterloo continued a strong run in May with 480 sales reported through MLS. Sellers remained in control of the market with an average list to sale price ratio of 98% and a brisk average of 34 days on the market. Resale homes accounted for 94% of these sales.
So how does this compare to May 2009? Unit sales actually declined by 10% while average prices increased by nearly 14% to $297,096. Rising interest rates and rising prices caused unit sales to decline as affordability suffered. As well, May marked the first full month where the new CMHC policies applied further dampening demand.
In the coming months, a key indicator to watch is the supply of homes for sale. Currently, there are 1298 residential properties for sale in K-W which represents an increase of nearly 15% over April's 1129. We currently have about a 3 month supply and this leaves us still firmly in a seller's market. I expect a steady transition to a balanced market over the remainder of the year.
One word of caution...I suspect the real estate numbers reported across Canada may be somewhat less rosy. Remember that real estate is local. Stay tuned right here to see where the Kitchener-Waterloo market is headed.
As always, for sound advice on your real estate needs, feel free to call or email firstname.lastname@example.org
Century 21 Home Realty Inc. Brokerage