As expected, power of sale listing activity was relatively quiet during the holiday season. Active residential listings under power of sale totalled 11 as of January 15, 2011, down from 14 in mid-December. I would expect an increase in power of sale listings over the next few months as the government has moved to make it harder for distressed homeowners to access their equity. As announced today, homeowners, effective March 18th, will only be able to refinance their CMHC-insured property to a maximum of 85% loan-to-value versus the current 90%.
There aren't many bargain homes for sale in Kitchener Waterloo currently. The real estate market in K-W is a sellers market with a shortage of properties for sale. This means there is high demand even for power of sale properties which generally aren't in the best of condition ie) a fixer upper or handyman special. There were 10 residential properties sold under power of sale in December, 2010, an increase from 7 in November. The property pictured above is in the desirable Lakeshore North neighbourhood. A "bidding war" erupted and it attracted multiple offers selling for nearly 10% above the asking price. Bear in mind that these properties are professionally appraised before they go on the market.
Have questions about power of sale properties or the process? I'll be happy to answer them at email@example.com or 519-505-4488.
Century 21 Home Realty Inc. Brokerage
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