Temperatures hot, home sales….not so much

Temperatures hot, home sales….not so much

KITCHENER-WATERLOO, ON (Aug 6, 2010) While temperatures were heating up in July, home sales were cooling off.

There were a total of 499 home sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) in July, compared with 654 sales the same month one year ago, a decrease of 23.7 percent.

July’s residential sales included 332 detached homes, 80 condominium units, 39 semis, and 41 townhouses.

“While the hot summer we’ve been experiencing has reportedly been great for beer sales, it hasn’t quite had the same effect on home sales,” joked Ted Scharf, President of the KWREB. “The good news is that while sales may have decreased, in July the average price rose one percent to $284,344 compared to the same month a year ago, which clearly illustrates the value of Waterloo region homes is stable, and in no way inflated.”

On a year-to-date basis, the number of residential transactions is up 9.2 percent to 4,135 units relative to 2009. Similarly, the average price of homes sold so far in 2010 has increased 9 percent to $290,740 compared to last year.

The most popular price bracket in July was for homes selling in the $225,000 to $275,000 range, where 30% of the residential sales activity occurred, compared to 26 percent a year ago. Meanwhile, the number of homes that sold for more than $350,000 declined by nearly 30 percent last month relative to the same period a year ago.

According to the president of the KWREB, July’s dip in activity shouldn’t come as a surprise. “July tends to be a quieter month,” said Scharf. “And when you add in the recent implementation of the HST, after the record pace we saw during the first half of the year, the slower pace is to be expected.”

Read Full Media Release