Most people who know me know that I have a real estate business, and that I'm involved in the housing market on a daily basis. Whether I'm helping people buy and sell residential real estate, or consulting with an investor about the direction to take their real estate investment portfolio in, I'm afforded an excellent view of what is happening to the real estate market on a local level; through real estate blogs and industry news sites, I'm able to keep up with trends worldwide (although mostly in North America). Naturally, people are always asking me what I think about the current market, whether we're heading for a bubble/crash/continued rise of prices etc.

This is a Great real estate market, for a number of reasons, as Darin Persinger points out:

1. Mortgage applications are up-great indicator that lookers are turning into buyers.
2. Mortgage rates are close to a 40 year low. This makes monthly payments affordable.
3. NAR reports pending home sales are up 4.3%.
4. Unemployment has declined to 4.6% and the economy is expanding. (ed: This is a US stat, but our local economy/unemployment in Kitchener Waterloo is similar)

It is true that we're no longer in a 'seller's market' (which is where there are more buyers than sellers, and buyers 'compete' for homes), and are into a 'buyer's market' (see here), but that doesn't mean that are market has taken a turn for the worse. As Roma Luciw points out in the Globe and Mail (hat tip: Edmonton Real Estate Blog), we are trending towards a more balanced market, which is a good thing for everyone:

Signs that Canada's housing market is in for a "soft landing" are building as the furious pace of activity in the housing market gives way to the most balanced conditions in more than five years, according to the Canadian Real Estate Association.

Although sales activity as measured through the Multiple Listing Service is easing, prices continued to shoot higher in September, with Edmonton displacing Calgary to take the top spot on the price gainers list.

…
The average price of a house in Edmonton reached $278,732 last month and $369,928 in Calgary. The Greater Vancouver area was by far the priciest place to buy at $527,504, while existing homes in Toronto sold for an average $349,149.

Prices actually fell in only four of the 25 major MLS markets: Newfoundland & Labrador, Windsor-Essex, Saint John and Durham Region.

…

Vancouver, Calgary and Toronto — the three most expensive cities in the country — experienced the largest drops in sales in the quarter, which helped average price increases slow to 9 per cent on a year-over-year basis from 11.3 per cent in August.

Sales activity in Edmonton and Thunder Bay rose to quarterly records in the third quarter.

CREA said the third-quarter numbers show that the housing market is becoming more balanced, spurring smaller price increases. The dollar value of existing home sales slumped 2.7 per cent in the third quarter from the previous quarter, although new listings climbed 3.8 per cent to 143,760.

"The quarterly decline in sales combined with an increase in new listings caused the resale housing market to become more balanced than in any other quarter in the past 5.5 years," CREA said.

In the first nine months of the year, transactions are above year-earlier levels and rose 1.4 per cent. Sales are still on track to set a record in 2006.

Benjamin Bach is a Real Estate Consultant with Keller Williams Golden Triangle Realty in Kitchener Waterloo dedicated to building wealth for his clients through smart Real Estate investments, and helping people achieve success. If you are interested in how you can start your Real Estate portfolio, or have any questions and buying or selling a home, you can email Benjamin (benjamin AT benjaminbach.com) or reach him at 519 772 4376.

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**ALERT: FANTASTIC HOMES AT EVEN BETTER PRICES!**

If you're looking for a fantastic home at an even better price in Kitchener, come drop by one of the open houses I'll be hosting this weekend (or better yet, come to both!).

64 Overlea CR - Open house Saturday October 21, 2:00-4:00pm

64 Overlea CR is 2 story all brick semi-detached home on a quiet crescent that has been renovated top to bottom. Features include a 15×24' detached garage, new flooring, newer windows, new carpet in basement; the main level & upstairs are carpet free. Home features a brand new furnace and central air.  This home is priced to sell at $179,800.

426 Franklin ST N - Open house Sunday Oct 22, 2:00-4:00pm

 426 Franklin ST. N. is a lovely 3 bedroom detached backsplit in Stanley Park. This home features new shingles, new furnace (2003), refinished hardwood, and a large family room with fireplace and laminate floor. There is a huge crawl space, spacious fenced yard (51 ft by 110 ft) You can walk to schools and the mall from here!  This home is listed at $ 209,800.

To set up a private viewing of one of these homes, or if you'd like up to the minute updates of other listed homes in Kitchener Waterloo emailed to you at no cost, contact us at 519 772 4376, or you can email us @ benjamin AT benjaminbach DOT com (replace AT with '@', DOT with '.')

Benjamin Bach is a Real Estate Consultant with Keller Williams Golden Triangle Realty in Kitchener Waterloo dedicated to building wealth for his clients through smart Real Estate investments, and helping people achieve success. If you are interested in how you can start your Real Estate portfolio, or have any questions and buying or selling a home, you can email Benjamin (benjamin AT benjaminbach.com) or reach him at 519 772 4376.

Subscribe to Benjamin Bach's KW Market Watch by Email

Re/Max recently came out with thier annual forecast of local real estate markets across Canada. The entire report can be found here, and is a very interesting read.

Here is what they have to say about our local market in Kitchener Waterloo:

After an unusually strong start to the year, Kitchener-Waterloo's residential real estate market has stabilized at more sustainable levels of activity. Balanced market conditions now prevail, with multiple offers the exception, rather than the rule. By year-end 2006, sales are forecast to experience a slight decline of about six per cent to 5,800 units, down from 6,147 one year ago. Prices are expected to climb close to nine per cent to $240,000, up from $220,511 in 2005.

Vendors who list their homes at fair market value are generally selling within 55 days, up from 47 one year ago. Purchasers are taking their time in selecting properties, thanks to a good supply of inventory currently listed for sale. Move-up buyers are a force in today's marketplace, fueling demand for product priced from
$300,000 to $350,000, while first-time buyers are largely satisfied.

Bungalows on 50 ft. lot sizes are particularly coveted by retirees in the area, prompting more building out of town in areas like New Hamburg and Baden. Although sales of executive homes have tapered, the number of homes sold at $1 million plus has risen 165 per cent (three sales to eight).

Small-to-mid size investors are also active in the market, driving demand for higher-density product. Many are tearing down existing properties, rezoning for multi-unit residential, and constructing apartments with 16 to 20 units, particularly in areas in close proximity to the university.

Kitchener-Waterloo has one of the lowest unemployment rates in the province, as well as one of the highest population growth rates in the country – growing more than twice the national rate. Known as Canada's technology triangle, Waterloo is home to 224 technology companies and another 404 companies providing related services. The diverse mix of manufacturing and service companies, a well-educated population and effective economic development collaboration among academia, business and government has made the area a success. However, layoffs at BF Goodrich earlier this year had an impact on the local economy, despite its diversity. Jobs created at the new Toyota plant in Woodstock may help to offset the full effect of the closure.

Incremental interest rate hikes throughout the year had little impact on residential real estate activity during 2006 and 2007 is expected to be no different. Concerns over the higher Canadian dollar and its effect on manufacturing are weighing heavily in the marketplace. Increasing inventory levels – about 10 per cent – will hold price appreciation in check in Kitchener-Waterloo. New construction is forecast to slow next year, especially in areas like Elmira, Heidelberg and St. Agagtha where local townships are struggling with subdivision expansion and preserving valuable farmland. In 2007, the number of homes sold in Kitchener-Waterloo is predicted to dip to 5,500 units, an eight per cent decline from 2006 levels, while average price is expected to hold the line at $240,000.

There are a couple of graphs embedded in the pdf file, which I'll try to get on the blog later tonight.

Benjamin Bach is a Real Estate Consultant with Keller Williams Golden Triangle Realty in Kitchener Waterloo dedicated to building wealth for his clients through smart Real Estate investments, and helping people achieve success. If you are interested in how you can start your Real Estate portfolio, or have any questions and buying or selling a home, you can email Benjamin (benjamin AT benjaminbach.com) or reach him at 519 772 4376.

Subscribe to Benjamin Bach's KW Market Watch by Email

(click graph to enlarge)

The Kitchener Waterloo Real Estate market has regained some ground in the first 10 days of October, gaining two points in the overall KW Housing Index. For a detailed explanation of the KW Housing Index, click here.

Here is the Index at the start of the month. The only price range that saw an increase in buyer intensity was the sub-$300,000 segment. The $300,000-$600,000 segment lost one point, and the over $600,000 segment stayed stable at 0.07.

(click graph to enlarge)

Benjamin Bach is a Real Estate Consultant with Keller Williams Golden Triangle Realty in Kitchener Waterloo dedicated to building wealth for his clients through smart Real Estate investments, and helping people achieve success. If you are interested in how you can start your Real Estate portfolio, or have any questions and buying or selling a home, you can email Benjamin (benjamin AT benjaminbach.com) or reach him at 519 772 4376.

Subscribe to Benjamin Bach's KW Market Watch by Email