Spring/Summer 2008
According to the Canada Mortgage and Housing Corporation, KW and Guelph home sales are forecasted to decline slightly throughout 2008 and into 2009. Furthermore, in continuation from 2007, housing markets in the Kitchener-Guelph area will favour sellers.
However, “Despite the forecasted decline, MLS sales will be at the second highest level on record” (CMHC, Spring 2008). Specifically “…the price gap between new and resale homes, a high level of new listings, diverse financing options and continued population growth will combine to keep existing home sales at very high levels. In addition, Kitchener/Waterloo incomes relative to mortgage carrying costs are higher than in either Hamilton or Toronto” (CMHC, Spring 2008).
The Kitchener-Waterloo Real Estate Board expects average home prices to rise 4.6% to $264,000 in 2008 and increase by 4.5% in Guelph.
“Mortgage Rates Predicted to Remain Relatively Flat”
Mortgage rates are expected to trend slightly lower throughout 2008, but will be within .25-.50 % of their current levels. For 2009, posted mortgage rates should begin to drift up slightly as the year progresses.
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