January is traditionally one of the slower months for real estate sales. I often cite two reasons: cold, snowy weather and a pile of bills from the Christmas season. This January saw 264 residential MLS sales versus 294 in January 2010, a decline of 10%. As you'll recall, last January saw relatively little snow and mild temperatures. The average sale price this January was $282,623, up slightly from $282,087 last year. The average days on the market for these sales was 46, up by 4 days year-over-year. The average list price to sale price ratio was 98.3% in January versus 98.1% in 2010. January, like December, is a month for real estate bargain hunters.
Kitchener Waterloo new home builders had a decent month in January with 33 residential MLS sales equalling the 33 last year. Of note, January MLS new home sales accounted for 13% of the total versus 11% in 2010. As detailed previously, we can attribute this increase to the shortage of resale homes available.
Current MLS residential listings total 1086. Of those, 475 are new homes. Readers of this blog know I don't put much stock in MLS new home listings as they are generally "to be built". Using January's new house sales, only 33 out of 475 or 7% sold. Yet the average list price to sale price ratio for those January new home sales was 102% reflecting firm prices and the cost of upgrades. No bargains to be had despite only 7 out of 100 listings selling.
The best barometer of the Kitchener Waterloo real estate market is the number of active MLS residential resale properties for sale. At present, we have just 611. Using January resales of 231, we have less than a 3 month supply of resale homes for sale. Kitchener Waterloo remains a sellers market as we enter February. If you are relocating to Kitchener Waterloo or thinking of buying a new home, I can help.
February is often the start of the spring market. Savvy sellers, looking to maximize their equity, act early as they recognize they have fewer homes to compete with. If your thoughts are turning to selling, I'll be happy to consult with you. Together, we'll develop a strategy to get you top dollar in a reasonable amount of time. Email or call email@example.com or 519-505-4488.
Century 21 Home Realty Inc. Brokerage
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