Strong second quarter price gains in Waterloo region

(July 14, 2008)

 

In the second quarter of 2008, homes sales in Waterloo region increased  37% over the previous quarter, but were down 10% from the same period last year. There were 2,022 MLS�  home sales recorded through the Kitchener-Waterloo Real Estate Board from April to the end of June, compared to the 2,253 home sales that occurred during last year�s record breaking spring selling season.

 

While the number of homes sold in the second quarter have calmed somewhat relative to last year�s fast and furious pace, home prices are showing continued strength. The year-to-date average MLS� sale price of a detached home sold in Kitchener-Waterloo and area has now surpassed the $300,000 mark and currently stands at $302,905. This is a 7.9% increase over the same period last year.

 

The average sale price of all residential properties sold so far in 2008 has gone up 7.5% to $264,888. But the biggest and most notable price gain in our local market, for the second quarter in a row, occurred in the residential condominium property category. The average price of a condo increased 13.9 percent to $179,464 and the median price (the middle point where half the homes are selling above and half below) increased nearly 18% to $165,000.

 

Condos are increasing in value because demand for them is on the rise. Younger buyers and retirees alike, are turning to condominiums for both the affordability factor and the low-maintenance lifestyle condo living provides. The increase in condo ownership we are experiencing locally is in keeping with what has been a growing national trend.  Recently released analysis by Statistics Canada based on 2006 census data show that in 1981 less than 4% of owner households owned condominiums. By 2001, this proportion more than doubled to 8%, and by 2006, had reached 10.9%.

 

 

The above information was prepared by Coldwell Banker Peter Benninger Realty, Brokerage based on MLS� data owned by the Kitchener-Waterloo Real Estate Board, Inc. for the period covering Apr 1/08 to Jun 30/08. Coldwell Banker Peter Benninger Realty assumes no liability for the accuracy or use of this information for any purpose and reliance upon this information is solely at the risk of the user.