October 2, 2009

August 2009 Kitchener Real Estate Trends Show Condo Activities Heating Up

Despite the economic troubles facing the country and particularly the Province of Ontario, the Kitchener Real Estate market has been relatively resilient. This is evidenced in the total number of Residential real esate sales as well as the residential sale prices for residential properties.

One of the hottest market segments in the Kitchener Real Estate market is the condo market. Year over year, we have seen a surprisingly strong increase in condo sales to the tune of 26%. This is great news, even in the best of times, but it also makes sense. (See my commentary under "Kitchener Apartments - Why Buy?" elsewhere on this site or by clicking the "Kitchener Apartments" link).

Clearly, the rise in condo sales has contributed to a rebound in total overall Residential Units sold. (By residential units, I'm talking about homes where people live, not commercial properties like malls, high-rise rental apartments, etc.). So, let's look at the numbers in greater detail...

Kitchener Real Estate Sales Figures - August 2009

When looking at the number of sales for August of 2009, it is quite clear that the Kitchener Real Estate has picked up where it left off in 2007. In fact, KW sales for August 2009 reached 489, versus 401 in 2008.

In August 2007, Kitchener Real Estate figures hit something of a high at 489 units sold. But, as shown above, 2009 saw us picked up at that same level.

As for outside-areas like Woolwich, Wellesley, Wilmot sales through our KW Real Estate Board (the same areas that I also happen to service) the numbers tell the same story.

This is great news for sellers, but also for buyers because prices are still lower than they were one year ago.

Prices Picking Up Steam But Are Still Low

Despite the vigor seen in the number of units sold, pricing on Kitchener Real Estate remains relatively soft. There are many reasons and theories for this, including the fact that many units will sell months in advance of their closing dates. With this in mind, 2008 prices were actually at their highest in the past decade even though the Kitchener Real Estate market was at the weakest it has been since 2004.

Understanding the lag between market activity and pricing activity allows us to speculate that 2010 prices may actually exceed 2008 levels and set new records, but this is a statement that needs to be taken extremely cautiously because economic data may not support higher prices.

Can You "Time" The Kitchener Real Estate Market?

The best option for people looking into buying Kitchener Real Estate might not be to wait and try to time the market. Unlike a stock market where indications might suggest overbought or oversold conditions, the Kitchener Real Estate market (or any Real Estate market for that matter) does not enjoy such statistical indicators.

Our market will always be dictated by supply and demand and we can see through our Sales numbers that demand is ramping up, particularly in the condo market.

Call Me To Discuss More

For more information about the Kitchener Real Estate market and a better understanding of the trends discussed here, please call me.