Home sales to the end of the third quarter of 2010 were ahead of last year by 4.5 percent with a total of 5,113 home sales through the Multiple Listing System (MLS®) of the Kitchener Waterloo Real Estate Board (KWREB) during the first nine months of the year. This was compared to 4,892 during the same period of 2009. According to KWREB, this is the first time since 2007 that sales to the end of the third quarter have increased on a year over year basis. The most popular price range year-to-date has been for homes selling between $225,000 and $250,000, with nearly 15 percent of sales happening in this bracket.

...

The number of residential sales increased in every price category above $250,000, with the biggest jump occurring in the most expensive homes. To the end of September, 62 homes were sold for more than $750,000, compared to only 24 last year at this time, a jump of 158 percent.

The average price of all residential properties sold year-to-date was $288,887; a 9.1 percent increase relative to 2009 results.

Summer Sales

KWREB explained that while sales in July of this year may have decreased, the average price rose by one percent to $284,344, compared to the same month one year ago. The most popular price bracket in July was for homes selling in the $225,000 to $275,000 range, where 30 percent of the residential sales activity occurred, compared to 26 percent a year ago. KWREB stressed that the slow down was expected after the record pace seen during the first half of the year and the recent implementation of the HST.

Home sales eased in August but remained stable due to the exceptionally strong Spring Market. Despite the softened demand, the overall average price of all residential properties sold through the KWREB's MLS system increased 9.4 percent in August to $280,493 on an annualized basis.

Looking Forward

KWREB expects the local residential real estate market to remain strong for the balance of the year. They note the federal funding announcements for the region's rapid transit project, and news earlier in the month from the Real Estate Investment Network, naming Waterloo Region the best place in Ontario for real estate investment. KWREB also comments that the local economy is both diverse and dynamic, and this region is highly regarded as a perfect place to make roots and invest in a home.

The above information is based on MLS® data owned by the Kitchener Waterloo Real Estate Board, Inc. July 1, 2010 to Sept 30, 2010.