With a long winter behind us, Kitchener Waterloo home buyers were out in full force in March. Preliminary numbers from the Kitchener Waterloo MLS show residential sales of 457 properties in Kitchener Waterloo. Of those, 36 were brand new and 421 were resales. For comparison, in the pre-HST buying spree of March 2010, there were 546 March sales with 69 new and 479 resales. For those keeping track at home, this represents a 16% decline in March sales year-over-year. I prefer to think of both totals as healthy numbers, particularly given that sales in March 2010 set a record.
Home sellers and Kitchener Waterloo Realtors were smiling in March as average sale prices climbed to $294,042, an increase of approximately 4.5% over March 2010. The average days on the market for March sales was 36, up slightly from March 2010's 33 days. Home sellers in March received, on average, 98.2% of their asking price versus 98.5% last March.
Active MLS listings in Kitchener Waterloo total 1225 properties currently. Of these, 434 are new/to be built and 791 are resale properties. Using March sale figures, we still have a strong seller's market as current inventory is equal to less than a 2 month supply of resale homes.
What can we expect in the coming months? In years past, sales were affected by an election as the for sale signs get lost in a sea of candidate signs. One positive is the Bank of Canada is reluctant to raise rates during an election. Market watchers therefore expect the next increase in the Bank of Canada rate on May 31st. April is traditionally one of the busiest months of the selling year and I expect healthy sales numbers in April similar to March. Keep an eye on the average price as March's average sale price equates to 4.2x average household income in Waterloo Region while 3-4x is considered the norm.
As always, if you need answers to the real estate questions that keep you up at night, feel free to call or email 519-505-4488 firstname.lastname@example.org.
Century 21 Home Realty Inc. Brokerage
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