Sustainable housing and real estate in Kitchener-Waterloo Region

How is the K-W market doing?
January 13, 2009, 2:56 am
Filed under: Market Conditions, Rebecca Sargent | Tags: , , ,

Do not let the American market and media scare you! Canada’s housing market is on much firmer footing than the American housing market.

The sub-prime mortgage crisis that we have seen in the past few years is an ongoing financial crisis that stems from mortgage companies offering mortgages with little or no downpayment to households with low incomes, assets and with troubled credit histories. Sub-prime mortgages account for 14% of the American housing market, but accounts for less than 5% in Canada, making the problem much more severe in the US. Canada has a strong labour market to underpin our housing market, with an unemployment rate holding at a 33 year low of 4.9%. Average wages are outpacing inflation, meaning that homeowners are still realizing real increases in monthly wages.

Kitchener has one of the strongest average sales-to-listings ratios this year. Considering the current instability of the government, confidence and job security is undermined. However, there is good news. The average sale price of a single family-detached residential property in the K-W area increased 7.6% in the past year. Many other markets are experiencing decreases in sale prices, making the value of home ownership investment in K-W relatively high. The slight dip in sales prior to November might be a reflection of the season, pre-election jitters, stock market instability or an indicator of a return to a more balanced market. The market has slowly but surely moving away from the aggressive Sellers market of the past few years and into a more balanced market.

Buyers entering the market today are in a good position, having much better choice and negotiating ability! If you are looking to be in your new home for spring, now is the time to buy! Take advantage of the current market position before it begins changing in the New Year!


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