Residential MLS sales in Kitchener Waterloo were somewhat subdued in June. There were 442 sales this June versus 490 in June 2011. This represents a decline of approximately 10%. New home sales were decidedly weak with only 9 versus 33 recorded last June. Residential resales for June were off approximately 5% year-over-year. Sellers received, on average, 97.1% of their asking priice in June versus 98.1% in June 2011. The average time it took to sell climbed to 40 days from 33 days last June. There was a bit of good news for Kitchener Waterloo home sellers as the average sale price rose nearly 2% year-over-year to $311,258.
Active residential properties for sale on the Kitchener-Waterloo MLS sit at 1721. Of these, 485 are new or to-be-built while 1235 are resales. With less than a 3 month supply of resale homes, that segment of the market remains a seller's market. However, on the new home side in Kitchener Waterloo, a buyer can expect significant incentives as demand flags. One production builder is currently offering $20,000 to spend on "enhancements".
So where do we go from here? I'm prepared to call a "top" in real estate prices in the local market. Recent changes to the Canada Mortgage and Housing Corporation's policies will alter the homebuying landscape. The effect of the recent CMHC changes is the the equivalent of a .9% increase in mortgage rates. As fewer buyers are able to qualify, and those that do, qualify for less, expect demand and prices to soften. My next post will outline what I expect the impact to be of the recent job cuts at Research In Motion.
Until then, for your real estate needs, feel free to call or email 519-505-4488 email@example.com.
Century 21 Home Realty Inc. Brokerage
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