An analysis of early March MLS sales activity in Kitchener-Waterloo point to a relatively healthy market. Unit sales for the first 2 weeks of March totalled 151 versus 225 for the same period in 2008 representing a 33% decrease.
However, the average sale price year-over-year declined by less than 1% and the list-price to sale-price ratio was a robust 97.6%. The average days on the market for homes selling in this period has increased to 53 days from 42 days in '08.
So what do we make of all this? The decline in unit sales can be accounted for with the end of the $0 down program. Sellers who price their homes to reflect current market value can expect to sell in a reasonable period of time. Buyers who are waiting for prices to come down will need to wait longer. A decline in interest rates has increased affordability.
Stay tuned in the coming weeks for further updates.