Tighter mortgage rules appear to have dampened demand for million dollar luxury homes in Kitchener Waterloo. The first half of 2013 saw just 5 change hands versus 10 for the same period in 2012 before the new rules took effect.
Regular readers of this real estate blog will know buyers of million dollar homes in Kitchener Waterloo now require a 20% downpayment. Previously, the Canada Mortgage and Housing Corporation would insure sales of million dollar homes with as little as 5% down.
I'm hearing word that sellers in other cities are reducing their asking price to just below $1 million to enable the buyer to put 5% down and qualify for CMHC mortgage insurance. We're not seeing this locally but it certainly bears watching as there are currently 41 homes for sale asking $1 million or more in Kitchener Waterloo.
Deer Ridge was the place to be as 2 of the 5 million dollar luxury home sales were located there. Interestingly, one of the successful sellers offered a 2013 Deer Ridge Golf membership as an incentive for the buyer. The other sales were in Hidden Valley, Westmount and Kiwanis Park.
As always, if you have questions about the Kitchener Waterloo real estate market, I'm here to help. Feel free to call, text or email 519-505-4488 firstname.lastname@example.org
Century 21 Home Realty Inc. Brokerage
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