In 2008 6,115 residential properties sold on the Kitchener Waterloo Real estate Board's MLS (R). This represents a decrease of 10.2 percent from 2007. The average price of all properties sold was $264,312. That's up 6.2 percent from 2007. On average these properties took 47 days to sell and sold within 97 to 98 percent of their asking price.
Since December 1st, approximately 250 homes took an average 63 days to sell and sold for 95 to 96 percent of their asking price. Despite slower sales and greater discounts from initial list prices, average sale prices appear to remain relatively high and stable at around $260,000.
So, high and stable prices contrasted with longer market times, more price reductions and fewer sales? What's going on here? The answer may lie in the state of our supply.
The year ended with 1,564 residential properties in inventory. That's 36 percent more inventory than at the end of 2007. As of yesterday (January 8th, 2009), there were 1,637 active listings on our MLS (R). Currently listed properties have been on the market an average of 81 days. The average price of all properties in inventory is $342,112. That's 29 percent higher than the average sale price for 2008 - 29 percent! No wonder asking prices are being reduced substantially during the marketing process. No wonder buyers are slow to act in the face of such out-of-line prices.
Clearly, our abundant inventory is stale and overpriced. This is reflected in sluggish sales activity, even for this time of year when sales are expected to be somewhat slower. We need new listings to balance this market.
Properly staged and well priced properties are in demand right now!
Let's meet to assess your real estate goals for 2009. I offer a free staging consultation with a professional home stager and decorator when you list your home with me.
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