Sustainable housing and real estate in Kitchener-Waterloo Region

Local, national and international housing
December 7, 2010, 10:14 pm
Filed under: Judita Makos, Market Conditions, Uncategorized



According to Kitchener-Waterloo Real Estate Board, total of 484 homes were sold in area through MLS,  which is 7.8 per cent increase compared to October 2010 and 10.9 per cent decrease to  November 2009.

 122 condominiums sold in November, which is 22 % increase over November 2009
and average price for condominium was $209,094, which is a 5.5% increase compared to the same month
last year.
The average price of all residential properties sold through the MLS® System of the KWREB last month was $282,629, a 0.4 percent decrease compared to November 2009. Detached homes sold for an average price of $322,839 last month, a 0.6 percent decrease relative to one year ago.
The most popular price range was for home selling between $200,000 and 225,000,
Consumers  favoured more modestly priced homes in November, however on year to date basis, it is amazing how the higher priced properties are driving much of the local real estate market” says George Patton, President of KWREB.
The strength of this residential market has resulted in a record breaking dollar volume of sales through the KWREB’s MLS® System, with year-to-date results for 2010 currently showing a total of $1,753,664,113, a 9.6 percent increase over the same period last year,and easily surpassing the previous record posted in 2007 of $1,619,377,742.

“In terms of total dollar volume, 2010 is poised to go down in history as our best year ever,” notes Patton.
Greater Toronto REALTORS reported 6,510 existing homes sales in November – down 13 % from november 2009 and the average selling price for November transactions was $438,030 – a 5% increase compared to same month in 2009.
“The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price,” said Toronto Real Estate BoardPresident Bill Johnston.
“Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area,” continued Johnston.
Home selling price in Canada shows decrease of 0,3 per cent in the third quarter as the market has slowed quicker
than expected. However, yar over year, prices are still up by 7.9 per cent.
Canadian economy remains a problem though. The Canadian real Estate Association has downgraded their forecast
4 times this year already. Latest forecast calls for 1.6 per cent gain in average housing prices in 2011, down from
5.4 percent previously forecasted.

According to Stats Canada  Municipalities issued $6.2 billion worth of building permits in October, down 6.5 per cent from September.
Statistics Canada blames the decline largely on drops in both the residential and non-residential sectors in Ontario and Quebec.
The value of residential permits fell 11.2 per cent in November, after substantial gains in September and October.
The value of non-residential permits remained at $2.7 billion as higher commercial and industrial construction  offset a decline in the value of building permits for institutional projects.
The total value of permits decreased in half of the provinces, led by Ontario and Quebec.
Newfoundland and Labrador had the largest increase.

“There is growing evidence that the global housing market recovery may just be beginning to run out of steam,” said
Liam Bailey, head of research for London-based Knight Frank in a report.

After several quarters of rising prices globally, home appreciation has slipped considerably, especially in Europe where there are fears that some countries may default on their debt.

Ireland was in last place on the list at number 48, down by 1.3 per cent in the third quarter, or minus 14.8 per cent cent year over year.

Italy was in 37th place with minus 2.5per cent growth, Greece was in 38th place showing minus 3.1 per cent growth, and Spain was in 41st place, showing minus 3.7 per cent year over year growth.

The biggest global gainer was the Asia Pacific region, up by 9.9 per cent in the third quarter
. The weakest was Europe at 0.8 per cent

Hong Kong was in second spot, followed by China in third.

“China’s key cities may avoid a significant correction in prices as local government fine tune their land supply programs,” said Bailey.

However, Frank Knight analysts still expect that prices will fall by 20 per cent in major cities cities such as Beijing, Shanghai, Guangzhou and Shenzen next year.

Latvia was the surprise top gainer in the third quarter. It was in last place a year ago. But the country has been highly volatile. A new immigration law that relaxed residency rules for foreign investors has helped to boost house prices according to Frank Knight.

 In the key United States market, prices are up by 0.6 per cent from a year ago, with average prices dropping to 2003 levels.

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