Kitchener Waterloo Realtors were as busy as bees in May as real estate sales remained buoyant. Results released by the Kitchener-Waterloo Association of Realtors show 487 residential MLS sales in May, down slightly over May 2011 results of 494. Of these, 41 were new homes and 446 were resales. New homes sales were up 37% year over year bucking the trend we've seen for quite some time. That left the number of resale properties sold down approximately 4% year over year. The median sale price for May sales was $282,000, up approximately 3.5% over last May. It took an average of 33 days to sell a property in May and Kitchener Waterloo sellers received 98% of their asking price on average. Both of these results were similar to last May.
Active residential MLS listings have climbed to 1657. Of these, 448 are new or to be built while 1209 are resale properties. Active listings spent most of 2011 in the range of 1200-1300 so this marks an increase of approximately 30% more homes for sale. With less than a 3 month supply of resale homes, the real estate market in Kitchener Waterloo continues to favour sellers. However, as listings continue to rise, watch for price increases to moderate in the last half of this year.
Where does the Kitchener Waterloo real estate market go from here? I've been asked many times in recent years how long the real estate boom can last. My reply has been consistent - as long as interest rates are low and jobs are plentiful. While rates are expected to remain low, it seems jobs are disappearing locally. A number of my clients were thrown out of work recently as Ornamental Mouldings announced they were closing after more than 80 years in business in Waterloo. As well, the troubles at Research in Motion are in the news daily and it appears job cuts are imminent. Watch for a special report on the impact of RIM on local real estate.
For sound advice on how the current market affects you and your real estate situation, feel free to call or email 519-505-4488 firstname.lastname@example.org.
Century 21 Home Realty Inc. Brokerage
"Delivering results since 1989"