The Kitchener-Waterloo Real Estate Board reports 527 residential sales in K-W for May 2009 representing a 9% increase over May 2008 sales. The average price declined year-over-year by 1.4% to $261,628. Right about now you're probably thinking "What about the Recession?" This increase in sales is being driven by low interest rates resulting in increased affordability. Over 3/4 of sales were under $300,000 indicating a large number of first-time buyers active in the market. Detached homes accounted for 68% of sales in May '09 versus 63% in May '08 showing the effect of low interest rates. Sellers of detached homes under $300,000 reassumed control of the market with a decline in active listings of 6% year-over-year.
So where do we go from here? I anticipate June sales will show similar results and the summer months will bring about a pause in the heightened activity. My next post will be devoted to the effect of interest rates on affordability and what the future might hold.