According to the Kitchener Waterloo Real Estate Board, housing sales were up in February from the month before. Specifically, 369 homes were sold in February, a 44% increase from the January. It is encouraging to see home sales increase, especially in the wake of months of bad news and a weakening economic environment.
It is interesting to note as well that Mortgage Rates are at record all time lows! 4.15% on 5 Year Fixed Rates!
The board reported however, that on a year over year basis, home sales were down 27%. This said, housing prices have only decreased 4% in the Kitchener Waterloo area since the same time last year. This is point reveals the very resilient housing environment in the area. Since the winter months are usually the weakest for home sales, we may see home prices actually increase as the spring and summer months approach.
Realtors that I have personally been in contact with continue to report multiple offers on almost all homes in the market. Where multiple offers are present, this usually means housing prices remain supported at strong levels. It also shows us that there is a fairly consistent supply of buyers in the market. See my article on the long term strength of Kitchener-Waterloo's economy for more reasons and details of why this is the case.
Finally it was reported that the number houses for sale last month, when compared to the year before is up 13%.
The Board noted several factors that should continue to help support the KW housing market in the near term, including:
- Low Mortgage Lending Rates
- The Federal Government's $5.35 million dollar support of the City of Kitchener's Digital Media Park project.
- The new Balsillie School of International Affairs in Waterloo.
- Waterloo Region's diversified employment mix.
For further questions or explanations, contact me, leave a post, or visit my web site at your convenience. brent@brentrichardson.ca 519 568 3377
