Best mortgage rates - Kitchener Waterloo (KW)

Kitchener Waterloo (KW) quick facts

Here are some vital stats on the area:

• Population: 548,710 in 2006 (10% growth over 2001)
• Median Age: 36.2 years
• Total private dwellings: 205,955
• Owned private dwellings: 144,385 (70%)
• Rented privated dwellings: 61,575 (30%)
• Number of families: 152,755
• Median income: $75,532

Statscan 2006 Census

Kitchener Waterloo (KW) Mortgage Rates Won't Budge

In their Housing Association Market Outlook, the CMHC indicated that they believe 2008 intereste rates will remain fairly stable and we might see a small 25-50 basis point drop before the end of the year, with a slight increase in 2009.

Kitchener Waterloo Housing Market Forecast

The CMHC believes that existing home sales will remain at strong levels throughout the Kitchener Waterloo area in 2008, but will decline from the record levels recorded in 2007. Sales through the Kitchener-Waterloo Real Estate Board will decline to 6,500 in 2008, down almost eight% from the record level of 7,031 sales in 2007.

Despite the forecast decline, MLS sales will be at the second highest level on record. Expect sales throughout the Kitchener-Waterloo area to decline further in 2009.

Rising mortgage carrying costs due to price growth will dampen existing home sales in the Kitchener Waterloo area this year in two ways.

Firstly, mortgage carrying costs have increased faster than rents, widening the cost gap between owning and renting. Secondly, house prices have been rising faster than incomes thereby reducing affordability.

Resale home prices through the Kitchener-Waterloo Real Estate Board are expected to increase by 4.6% to $264,000 in 2008, after a 6.1% increase in 2007.

CMHC Kitchener Waterloo area housing market & Kitchener Waterloo area mortgage rate forecast

Source = CMHC
MLS = Multiple Listings Service