The KW Housing Index measures the level of buyer intensity for single family residential homes listed on the Multiple Listing Service (MLS) in Kitchener-Waterloo. The Index is compiled using raw data directly from the MLS, and buyer intensity is measured by tracking the ratio between the number of firm and conditional sales in a rolling thirty day period, and the number of available homes listed for sale. A higher number (above 1.20) indicates more buyer competition for each home on the market; a lower number (under .80) indicates less buyer competition for each home.
The local markets ended September with an Index of 0.34, which means that the ‘buyers market’ we’ve been hearing about is now here. It must be noted that around 500 homes are selling each month, which means the low Index rating is a reflection of the swelling number of listings, not a major slowdown in sales. September sales of single detached homes were up 1.0% over the same time last year; the total dollar volume of all residential property sales was up 3.4% to $111 million; and the median sale price of all residential sales last month was $219,000, up 9.5%.
Waterloo East saw an increase of nearly 21% in sales over September 2006, and sales in Kitchener East are up 13.6%. Price appreciation for residential properties year to date in 2006 is 7.4%, although September prices are down slightly from August. Average days on market was up slighlty, 56 days vs. 52 days this time last year. Sellers are, on average, receiving 97.6% of their list price in the sale (this isn’t necessarily the original list price though, as we’ve seen a record number of price reductions in the past month).
The graph above shows the movement the local market has taken over the summer months, measured in different price ranges: $0-300K, $300K-600K, over $600K and the entire market (in blue). We are now clearly in a ‘buyers market,’ which means that clients looking to buy property may be able to secure very favourable terms, conditions and pricing on properties they are interested in. Sellers can stand out from the crowded marketplace by pricing their property correctly, selecting a Real Estate team with a proven systems based approach to marketing and selling properties, and utilizing the services of a Home Staging Professional to prepare the home for sale.
Benjamin Bach is a Real Estate Consultant with Keller Williams Golden Triangle Realty in Kitchener Waterloo dedicated to building wealth for his clients through smart Real Estate investments, and helping people achieve success. If you are interested in how you can start your Real Estate portfolio, or have any questions and buying or selling a home, you can email Benjamin (benjamin AT benjaminbach.com) or reach him at 519 772 4376.