The Olympic cauldron and our Canadian athletes weren't the only things on fire in February. Preliminary MLS data from the Kitchener-Waterloo Real Estate Board indicates a strong seller's market in K-W with 382 residential sales. Sellers received a sizzling 98.9 per cent of the asking price on average! Resale homes totalled 341 while 41 sales were new construction. February 2009 saw K-W MLS sales of 290 which marks an increase of 32% year-over-year.
How do we account for the increase? There continues to be a lack of properties for sale. Presently, active residential listings in K-W total 979 versus 1357 at this time last year. If we strip out new home listings, the active total drops to 733 which represents slightly more than a 2 month supply. Other factors causing buyers to commit are: the prospect of rising mortgage rates, changes in Canada Mortgage and Housing Corporation's policies and the July 1st introduction of the Harmonized Sales Tax.
Currently, prices are on the rise with a median sale price in February of $255,000 versus $238,000 last February. This indicates a 7% increase year-over-year. Of note, February saw 8 sales in excess of $600 000 versus 2 last year. The average days on the market for February sales declined to 37 days from the 51 days last February.
In summary, it's a great time to sell and it won't last forever.
For sound advice on your real estate needs, feel free to contact me.
Century 21 Home Realty Inc. Brokerage