The local improvement in economic conditions appears to have led to fewer Power of Sale properties in October. Active listings under Power of Sale as of November 15th totalled 11 versus 12 in mid-October. Of these, 10 are in Kitchener and 1 in Waterloo.
Properties bought under Power of Sale in October declined to 10 versus 17 in September. Of note, there were multiple offers on 4 of the 10 with one property selling for 102% of the list price. The median days on market for these sales was 15 and the median list-to-sale price was 98%. These are strong indicators of a seller's market. The limited supply of houses for sale has resulted in a strong market for these homes inspite of the less than ideal condition of these abandoned properties.
The house pictured above is in the exclusive neighbourhood of Bridle Path Estates and sold under Power of Sale for $675 000. The former owner had tried to sell for over a year at $825 000 and then $775 000.
For the balance of 2009, I expect to see similar market conditions. Interest rates bear watching in 2010 as current household debt levels appear to be unsustainable.
In my next post, I'll address the challenges of trying to buy a home in a seller's market.