Kitchener-Waterloo Real Estate Trends April 2008
K-W HOME SALES HOLD THEIR OWN IN MARCH DESPITE ECONOMIC CONCERNS
KITCHENER, ON (April 4,2008) - Sales of residential real estate in Kitchener-Waterloo and area remained very strong during the first quarter of 2008 despite fears of a national economic downturn.
During the first quarter of 2008, there were a total of 1,483 home sales, just 1.5 percent short of last year's record for the same period. In the midst market uncertainty caused by the housing crisis in the United States, lower overall economic growth in Canada and steadily increasing energy costs.
"Residential real estate sales in the area have remained robust, particularly given slower sales in many other parts of the country," says Karen Shartun, President of the Kitchener-Waterloo Real Estate Board. "A harsh winter with record snowfalls has also failed to slow down buyer interest to any great degree", says Shartun.
Across Canada residential real estate sales dipped 5.6 in March. Sales for the month in Kitchener-Waterloo and area totaled 606 units, just 1.6 percent lower than the same month one year ago.
Demand for condominiums remained strong last month, with sales increasing 16 percent to 276 units for the quarter. Similarly, demand for housing across higher price ranges had continued strength during the first three months of 2008, with significant increases recorded for most price categories above the %225,000 threshold. As a result, dollar volume of all residential sales jumped 5.0 percent during the first quarter to $383 million.
"Despite some economic concerns, the Canadian housing sector is in much better shape than in the U.S.," says Shartun. Additionally, employment remains strong and the Region's diverse economy is managing to withstand pressures in the manufacturing sector.
While unit sales are holding their own against a general moderating effect impacting the rest of the country, the average sale price of residential properties sold in Kitchener-Waterloo and area during the first quarter surged 7.7 percent to $258,491. The average price of single family detached properties sold during this period jumped 6.4 percent to $295,521.
Median prices of homes sold from January through March experienced similar increases, with a 6.7 percent increase to $240,000 for all residential property categories. The median price of single family detached properties increased 6.0 percent to $270,250.
"Downward pressure on sales is resulting from fewer active listings, though the end of winter should trigger an increase in homes for sale," says Shartun. The 1,733 active listings in March marked a 16.7 percent decrease relative to one year ago. New listings for the first quarter were off by 2.7 percent at 2,513.
