KW Market Snapshot for First Quarter 2009

First Quarter of 2009 saw sales for residential properties in the Kitchener-Waterloo market area drop by nearly one quarter from 1,484 to 1,121 units.

Average sale prices remain stable, but at five to six percent lower values than last year. Average sale price for all residential properties sold during the first three months of 2009 was $249,774 compared with $264,367 for 2008 overall. Monthly averages range from $246,846 to $252,744.

Inventory levels are seven to ten percent higher than they were at this time last year. Until very recently this was more due to properties staying on the market longer rather new listings coming onto the market. However, the month of March 2009 saw 920 new listings come onto the market compared with 752 in February 2009 and and 787 in March 2008.

The resulting sales to new listings ratio is hovering around 50 percent. That's the number of sales in a month versus the number of new listings in a month. It is generally accepted that around 50 percent is a balanced market. Above 60 to 70 percent is considered a seller's market. Below 40 percent or so is a buyer's market.

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