As this recent press release from the Kitchener-Waterloo Real Estate Board states, home sales are continuing to surge in the K-W area in March 2010.

MARCH HOME SALES SURPASS THE 700 THRESHOLD

KITCHENER-WATERLOO, ON (April 6, 2010) - For the first time in the month of March, residential property sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) surpassed the 700 transactions threshold.

Home sales surged last month to 731 units, an increase of 47.1 percent relative to March 2009 results. In February there were 555 sales.

"Usually we start to see this kind of activity in April and May," said, Ted Scharf, President of the Kitchener-Waterloo Real Estate Board, "but spring has sprung a little earlier this year in terms of home sales."

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March's sales included 427 detached homes (up 31.8 percent from 2009), 134 condominium units (up 69.6 percent from 2009), 71 semis (up 54.3 percent from 2009) and 93 townhouses (up 111.4 percent from 2009).

The most popular price range continues to be for homes selling between $225,000 and $250,000, with 120 sales in March, up 36.4 percent over last year. But demand for the highest price ranges continues to grow, with a notable 200 percent increase in residential sales over $500,000. In March there were 39 homes sold in March for more than half a million dollars, compared to only 13 properties this time last year.

Strong sales resulted in a 9.6 percent increase in the average sale price of homes sold in March to $276,695, as compared with one year ago. Detached homes saw an average sale price of $326,233 a 13.7 percent increased compared with March 2009.

Encouraging sales are a number of factors: The economic outlook, consumer confidence, the coming Harmonized Sales Tax, and most notably, the recent announcement of mortgage rate increases, with more adjustments expected to come.