Low interest rates continued to entice Kitchener Waterloo homebuyers into the market in August as 351 residential MLS sales were recorded. This is down slightly over the 369 in August 2010. However, August 2010 saw sales of 41 new homes versus 17 this August. Sales of used homes or resales in August were up 2% year-over-year.
Readers of this blog will recall my opinion that the resale market is a better gauge of the health of local real estate. The average sale price of the 334 resale homes sold in August was $296,532, an increase of 5.8% over August 2010's $280,319. Sellers received 97.8% of their asking price in August versus 97.6% last August. The average days on the market for August sales was 42, a slight decrease over last August's 45 days.
Active Kitchener Waterloo residential MLS listings remain relatively low at 1402. Of these, 412 are new homes or to-be-built while 990 are resales. The resale inventory is equal to approximately a 3 month supply. Based on this, the Kitchener Waterloo real estate market remains a sellers market.
What can we expect for the balance of 2011? The short answer is look for more of the same. I do expect the increase in prices to moderate. A typical fall market in Kitchener Waterloo sees reduced volume of sales versus the spring and summer. With interest rates for 5 year mortgages in the 3.5% range, I expect first-time buyers will be anxious to "fire their landlord". Baby boomers or zoomers will be another of the most active segments of the Kitchener Waterloo real estate market this fall as many of them look to relocate for retirement. As the kids head back to school, families are less inclined to move in the fall.
As always, please understand markets are local. I showed homes today on a Kitchener crescent and I think I counted 10 for sale signs and 1 sold sign. For homeowners there, the sellers market outlined above obviously doesn't apply.
Noticing more private for sale signs in your neighbourhood? My next post will examine what I call Kitchener Waterloo real estate's "shadow inventory".
If you have a real estate question, I'll be happy to answer it. In fact, it may be the topic of my next blog post! After over 22 years of selling real estate in Kitchener Waterloo, chances are pretty good I'll have an answer.
For advice you can rely on, feel free to call or email 519-505-4488 email@example.com.
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