There were no dog days of August for home sales in Kitchener Waterloo as the local market continued to show modest growth year-over-year. August saw 370 residential properties sold on MLS versus 350 last August for an increase of nearly 6%. Of these, 24 were new home sales and 347 were resales. Average resale prices in Kitchener Waterloo rose over 3% to $310,359 and it took 43 days on average to find a buyer.
Kitchener Waterloo home sellers received, on average, 97.3% of their asking price as buyers were able to take advantage of end of summer bargains. One buyer of a million dollar luxury home in Kitchener paid only 82% of the asking price!
Active properties on the Kitchener Waterloo MLS number just 1276. Of these, 317 are new or to be built while 959 are resale or used homes. With about a 3 month supply of resale homes, the Kitchener Waterloo market remains a sellers market.
Where do we go from here? As we approach the 5 year anniversary of the beginning of the Great Recession, it's worth noting that emergency interest rates remain in place. Those home owners coming to the end of a 5 year mortgage term will be renewing into a rate roughly 2% below their current rate. Should they choose to move, they will qualify for a considerably higher mortgage which should continue to spur the local market in the coming months.
Regular readers of this Kitchener Waterloo real estate blog will know not to put too much stock in short term results. Year-to-date, new home sales are down about 4% while resales are up nearly 2%. It appears the significant CMHC mortgage rule changes of last year have succeeded in moderating local home sales.
As always, for sound advice on your real estate needs, feel free to call, text or email 519-505-4488 firstname.lastname@example.org.
Century 21 Home Realty Inc. Brokerage
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