K-W HOME SALES UP IN MAY, DETACHED HOMES DOMINATE

KITCHENER-WATERLOO, ON (June 3, 2009) - The momentum of the traditional spring market did not dissipate in May as homebuyers continued to come out of their winter hibernation.

The 688 residential sales reported through the MLS® System of the Kitchener-Waterloo Real Estate Board (KWREB) last month marked a 9.9 percent increase over May 2008 results. While this total is 86 units shy of 2007's record breaking May, it was still a stellar month on several fronts:

• It was the first time since September 2008 that monthly residential sales increased on a year-over-year basis.

• A total of 478 Single Detached homes sold representing an increase of 14.4 percent over last May, and marking the greatest number of units sold in this category in nearly 2 years (508 sold in June 2007).

• It was the first time in nearly a year that overall home sales exceeded 680 units (In June of 2008 there were 706 residential transactions)

• May's results continue the strong spring residential market which started in April with 636 home sales

May's results were driven by Single Detached homes, which made up nearly 70% of all residential transactions.

There were 82 homes sold in the $275,000 to $300,000 range, an 86.4 percent increase relative to May 2008. The most popular price range was between $200,000 and $250,000, where 28.5 percent of the sales occurred.

"For those who are ready to enter the housing market, historically low interest rates continue to make it a great time to buy," says Karen Shartun, President of the KWREB.

Shartun is quick to note that while lower prices may be motivating first-time home buyers in other markets, price declines are not having the same impact in K-W and area because prices have held steady.

The average sale price of all homes sold last month was up 0.3 percent to $270,650, compared to May 2008, and the median price of all homes sold in May increased 2.3 percent to $250,600.

Compared to last May, the number of residential properties available for sale through the KWREB's MLS® System was up 9.4 percent to 2,287. Other factors that may be contributing to the strong spring market have come by way of the Federal Budget 2009 incentives to encourage homeownership through the following:

• Improving the Home Buyer's Plan (HBP), first-time home buyers can now withdraw up to $25,000 from their RRSP savings to put towards a down payment.

• First-Time Home Buyer's Tax Credit - provides a 15% credit on a maximum of $5000 of home purchase costs (i.e. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750

• The temporary Home Renovation Tax Credit for eligible home renovations provides up to $1,350 in tax relief.

• The ecoENERGY Retrofit program provides home and property owners with grants of up to $5000 to offset the costs of making energy-efficiency improvements

Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR® will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.

The use of average price information can be useful in establishing long term trends; however the Kitchener-Waterloo Real Estate Board cautions that an average price does not indicate the actual value of any particular property. Those requiring specific information on property values should contact a REALTOR®.