Residential real estate in June 2009 provided a bit of sunshine in an otherwise gloomy economy. Kitchener-Waterloo shows approx. 569 sales through the Multiple Listing Service which surpassed June 2008's total of 564. Of note, 75% of sales were under $300 000 and new construction accounted for only 6% of the totals. The average days on the market for these sales were 51 days versus 40 days in 2008. The average list price to sale price ratio was a robust 98% in both instances.
Where do we go from here? Active resale listings currently total 1291. If we strip out new homes(which may or may not be built), the total drops to 928 or less than a 2 month supply. This indicates a seller's market and also bodes well for new construction. Buyers unable to locate suitable housing in the resale market may be tempted to buy new construction. My next post will detail why I think this is a bad idea in July 2009.