Power of sale activity continued to trend upward on the Kitchener-Waterloo Real Estate Board in March with 12 sales versus 11 last month. Of note, 10 were in Kitchener and 2 in Waterloo. The scarcity of properties for sale resulted in a brisk 24 days on the market for these sales and a list price to sale price of 98% on average. The lenders at CIBC and TD are breathing easier after selling 5 and 3 power of sales respectively in March.
Active power of sale listings on MLS in Kitchener-Waterloo as of April 15th held steady at 11. Of these, 9 are in Kitchener and 2 in Waterloo. Included in this is the home pictured above. A dumpster in the driveway with no visible construction/renovation activity is a telltale sign of a power of sale.
What should we expect in the months to come? I expect the recent changes in CMHC policy to result in an increase in power of sales. Refinancing homeowners are now limited to 90% of the appraised value of their home. As well, non-owner occupied properties now require a 20% downpayment and a change in the treatment of rental income make it harder to qualify. In short, when it's harder to refinance and harder to buy an investment property, sales decline and the number of properties for sale increase. Add in the specter of higher interest rates and the deferred impact of the $0 down and 40 year amortization purchases and it's clear we can expect to see more dumpsters in driveways near you.
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Century 21 Home Realty Inc. Brokerage