There is lots of talk about the economy these days. We keep hearing about the Wall Street Bailout, the economic issues in the US credit and equity markets, and the downward pressure on housing prices in some areas of the USA.
Recently, I find myself being asked by investors the question of whether what is happening south of the border is affecting Real Estate in the Kitchener Waterloo market.
Now, I know the old saying “When the US Sneezes - Canada Catches a Cold,” and clearly the health of our economy is tied somewhat to that of our largest trade partner, the USA, but recent activity in Kitchener Waterloo seems to be bucking the trend.
In September 2008, the number of residential units sold increased 11.4% from September 2007. The value of these residential sales was $134,753,742 last month, compared to $120,205,358 in September of 2007 -a 12.1% increase in the dollar volume of all residential sales for the month.
Year to Date, the total dollar value of all residential sales has increased by $14,871,289 over the same period (Jan-Sept) of 2007.
Residential is not the only asset class that’s showing strength in the Waterloo region real estate market. Investors have also been trading Multi Family units with greater volume than last year; September 2008 multi family sales (dollar volume of sales) were up 32.6% over September 2007, and year to date about $15 million in additional multi family property has been bought & sold ($85,413,829 [2008 YTD] vs $70,769,850 [2007 YTD]) compared to last year.
What about average sale price in Kitchener Waterloo ?
Great question! Let’s have a look:
The average sale price of a detached residential home was $293,690 in September 2008, compared to $285,638 in September 2007.
The average sale price of all other types of residential property (semi detached, freehold townhouse, condominium unit, co-operative, link, recreational or mobile home) climbed to $192,869 (YTD 2008) from $179,464 (YTD 2007) - an increase of 7.5% year over year.
Kitchener Waterloo continues to show why strong fundamentals drive a growing real estate market. KW has great employers, fantastic employees, and is a great place to live. All this contributes to economic growth - more and better jobs - which draws people to the area.
As Dr. Sherry Cooper, Chief Economist, BMO Capital Markets said, “We expect growth in Waterloo-Guelph to exceed both the Ontario and Canadian rates over the 2009-12 period.”
Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate
Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.
Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a rental, income or investment property.
You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447
**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008
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