After several months of decline, Kitchener Waterloo real estate sales rebounded in October. Preliminary numbers show 373 MLS sales. This represents an increase of about 6% over October 2011 sales. It is also the highest number of sales since October 2009. Of the 373 sales, 14 were new homes and 358 were resales. Of note, 12 of the 14 new homes were condominiums and 9 of those 12 were under $180,000. These appeal to first time buyers as the downpayment is relatively small and the monthly payments are similar to paying rent.
Average prices rose to $297,438 from $282,967 last October for a gain of about 5%. It wasn't all good news for sellers though as it took an average of 46 days to sell, up from 38 days last October. Sellers received, on average, 97.1% of their asking price versus 97.7% last October. This is fairly typical of fall sales as sellers and their agents try to get what sellers were receiving earlier in the year and often fall short.
Also of note, active properties on the Kitchener Waterloo MLS dipped to 1559 from 1731 in September. Much of the decline can be attributed to expired listings of Kitchener Waterloo new home builders. Active listings of new homes declined from 545 at the beginning of October to a current total of 443. Year-over-year, active listings have climbed by 8%.
So where do we go from here? Based on October sales, we have about a 3 month supply of resale homes. Sales volume typically decline in November through January and I expect the coming months to be no exception. Sellers on the market this time of the year tend to be motivated and buyers are looking for bargains. As a result, I expect prices to soften somewhat.
As always, bear in mind real estate markets can vary greatly based on local dynamics. For up-to-date information on your neighbourhood, feel free to contact me.
Century 21 Home Realty Inc. Brokerage
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