November unit sales in Kitchener-Waterloo were up a sizzling 76% over November, 2008 according to figures released by the Kitchener-Waterloo Real Estate Board. A November record 422 properties changed hands versus 240 in November, 2008. Another November record was set as the median sale price in K-W hit $248,750 versus $234,500 in 2008, an increase of 6%. The return of consumer confidence was reflected by a 67% increase in unit sales in the $350,000-$500,000 price range. Kitchener-Waterloo new home builders also benefitted with 85 new homes under contract in November marking a nearly 215% increase over 2008's tepid results.
What can we make of all this? We currently have a strong sellers' market characterized by lots of buyers and a limited supply of homes for sale. Active listings on the Kitchener-Waterloo Real Estate Board have dropped below a 3 month supply. To give this some perspective, the United States currently has about a 7 month supply of homes for sale. Prices are likely to continue to climb locally in the short-term. The Bank of Canada is scheduled to announce on interest rates on Tuesday. The expectation is for no change in the overnight rate but observers are keen to hear the bank's economic forecast update.
My next post will look at the results of the Canadian Association of Accredited Mortgage Professional's Fall Survey Report on the annual state of the residential mortgage market in Canada.