Bargain hunters continue to be denied and bankers delighted as May residential sales of Power of Sale properties continued to show strong results. There were 8 MLS sales under power of sale in K-W in May with 1 in Waterloo and 7 in Kitchener. The average days on the market for these homes was only 32 days and the list-to-sale price ratio was a stellar 98%. As previously noted, power of sale listings had declined last month to their lowest level this year.
In a trend that bears watching, active residential power of sale listings in mid-June rose to 13 versus 10 in May. Of note, 2 of these showed Wells Fargo Financial Canada Inc. as the lender. Wells Fargo recently stopped offering residential mortgages in Canada. Their niche was lending to homebuyers who failed to qualify at Canadian banks ie) subprime lending. It's entirely possible that these mortgages were due for renewal and the buyers still couldn't qualify for the mortgage elsewhere.
What should we expect in the coming months? Canadian debt-to-income ratios climbed to a record 147% in the 4th quarter of 2009. Given the strong start to 2010, that number likely climbed even higher. Credit counsellors report receiving increasing calls for their services after a big jump in 2009. Keep a close eye on interest rates...bargain hunters may yet have their day.
As always, I'm happy to advise on your real estate needs. Call or email 519-505-4488 jeff.gingerich@Century21.ca
Century 21 Home Realty Inc. Brokerage