K-W HOME SALES UP 26 PERCENT IN AUGUST AS CONDO MARKET HEATS UP

KITCHENER-WATERLOO – Driven by the sale of condos, residential properties in Kitchener-Waterloo and area increased 26 percent last month over August 2008.

In August there were a total of 594 homes sold through the MLS® System of the Kitchener-Waterloo Real Estate Board (KWREB) for a total value of $149,715,087 (up 20 percent from August 08) including 364 detached homes (up 16 percent from August 08), and 132 condominium units (up 67 percent from August 08).

“Demand for higher priced homes was softer in August compared to last month and compared to the same month last year,” says Karen Shartun, KWREB President. This combined with the increased demand for more affordable housing types has put downward pressure on Augusts’ average residential price which decreased 4.5 percent to $253,325. Meanwhile, on a year-to-date basis the average residential price only decreased 1.7% to $260,985.

Detached homes sold for an average price of $290,470 in August, a 3.9 percent decrease relative to last year. On an annualized basis the average price of detached homes is down 2.6% to $295,970.

In the condominium market, the increased demand pushed the average price of condominiums up 12.9% to $182,942 over August 2008 results.

“August was another great month for local home sales,” says Shartun. “Consumer confidence continues to improve, and buyers are taking advantage of low interest rates, and improved affordability.”

Shartun explains that incentives such as the increase in the maximum withdrawal allowed under the Home Buyers’ Plan to $25,000, and the First Time Buyer Tax Credit, are drawing more first time home buyers to the housing market.

Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR® will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.