Kitchener-Waterloo Home Sales Down in January - Average Sale Price Reaches New High
STEADY HOME SALES IN NOVEMBER
KITCHENER‐WATERLOO, ON (February 3, 2012) –– Sales of residential properties by REALTORS® through the Multiple Listing System (MLS®) of the Kitchener‐Waterloo Association of REALTORS® (KWAR) were down 7.8 percent compared to last year, but in line with the 10 year average for January.
There were a total of 342 residential properties sold last month, which included 220 detached homes (down 10.6%), 74 condominium units (up 15.6%), 21 semis (down 32.3%), and 25 freehold townhouses (down 7.4%) from last year.
While sales were down, the average price of all residential properties sold through the MLS® System of the KWAR soared in January, with an increase of 12.9 percent to $315,932. Detached homes sold for an average price of $361,470 in January, a 14.5 percent increase relative to one year ago. The average sale price for a condominium unit was $222,873 last month, a 17.9 percent increase compared to last year.
“We were seeing more activity among move‐up buyers in January,” says Sara HIll, President of the KWAR. She points out that whereas in January of last year we had 70 percent of sales happening under the $300,000 mark, this past month the share of sales happening under $300,000 was 56 percent. More sales in the higher price ranges exerted upward pressure on the average sale price.
“It is only a matter of time before we will see a return of the first‐time buyers,” said Hill. “Unfortunately this segment of the market is most influenced by the doom and gloom that is out there right now, and even though lending rates have never been lower, first‐time buyers are still a little cautious,” she added.
The dollar volume of all residential real estate sold last month was $108,048,599, a 7.9 percent increase compared to December 2011, and a 4 percent increase relative to the same period last year.
The KWAR cautions that average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. Those requiring specific information on property values should contact a REALTOR®.
Full Media Release can be found HERE
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“Moderate demand in early 2011 was likely the result of the many buyers who purchased in the latter part of 2009 and early 2010 to avoid anticipated higher mortgage rates, and the HST,” says Hill. “Then, when adjustments to the rules for government-backed insured mortgages were implemented in March of 2011, this may have further impacted the ability for some to enter the housing market, particularly first-time buyers.” First-time buyers are an important segment of the KW real estate market, according to the president of the KWAR, “because the population of KW is younger than the provincial average.”
Source: Kitchener-Waterloo Association of REALTORS®
If you are unsure about current market conditions Julie would be happy to work with you to develop an effective selling strategy. If you are buying, Julie will negotiate on your behalf and guide you through every step.
NEW 2011 MORTGAGE RULES
In a news release dated January 17th, 2011 the Harper Government takes prudent action to support the long-term stability of Canada's housing market.
The Government acts to protect and strengthen the Canadian housing market. “Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister of Finance Jim Flaherty.
The new measures include:
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Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
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Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
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Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.
The adjustments to the mortgage insurance guarantee framework will come into force on March 18th, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18th, 2011.