Real estate sales have defied expert predictions as evidenced by Vancouver sales rocketing ahead 117% year-over-year http://tinyurl.com/lmpz9g However, markets are local in nature so let's look at the Kitchener-Waterloo market year-to-date and where the market is heading in the months to come.
Year-to-date MLS sales to the end of August '09 totalled 3422 versus 3715 for the same period in 2008. The average sale price declined a slight .5%. The inventory of homes currently for sale on the K-W MLS sits at 1120, of which 834 are resale homes. This represents approximately a 3 month supply based on current sales. Clearly the local real estate market is quite healthy.
So what's next? I expect both demand and prices to moderate within the next 6 months. Unemployment continues to hover in the 10% range in Waterloo Region. As Employment Insurance benefits are exhausted, we'll see an increasing number of power of sale properties. Overextended homeowners will become sellers as they look for relief from the new economic reality. While there are lots of people talking up "green shoots" and the end of the recession, without jobs the recovery will be muted at best.
As always, feel free to call/email for sound advice with respect to your real estate situation. 519-505-4488 MailTo: Jeff.Gingerich@Century21.ca