Demand for higher priced homes pushing up averages
The demand for higher priced homes has pushed the average sale price in Kitchener Waterloo up 11.2% to $338,209. Homes sales over $400,000 increased 50.7%. May saw a 25.5% increase in total residential sales on a year to date basis.
2010 is expected to be a record breaking year, in spite of interest rate increases and the HST coming into effect July 1st.
March 2010 Home Sales
Spring has sprung! March home sales see an increase of 47.1% over March 2009. The average price of homes sold in March is also up 9.6% over a year ago. See the full report here.
http://www.kwreb.on.ca/Stats/March%202010%20Media%20Release.pdf
CREA and the Competition Bureau of Canada.
Recently, there has been a hyperbolic amount of media attention upon the Canadian Real Estate Association (CREA) and the Competition Bureau of Canada. As a result, there is considerable confusion among the Public, as to exactly how real estate transactions take place in Canada and what the MLS system is.
Is the MLS system a public forum? No.
The public may view the information but Realtors post to it.
Will Realtor.ca become another “classified ad site”? No.
Integrity of the data presented on Realtor.ca is paramount. Do you trust everything you read on classified ad websites? I know I don't! A short time ago reports surfaced about owners discovering their properties being offered for sale on a “classified ad site”, not by themselves, but by people trying to scam unsuspecting buyers. This is definitely not in everyone's best interest.
Local MLS systems and Realtor.ca were created and paid for by Realtors. It is one of the tools used by Realtors to expose their listings ( I emphasize “one”!). Integrity of the data is vital and enforced to maintain a system that is reliable and trusted by the public.
To become a Realtor one must have extensive education and training in all aspects of Real Estate, including Real Property law, Contract Law, Code of Ethics and more. Once a Realtor, we are governed by and must adhere to rules and regulations set out by the local boards, The Canadian Real Estate Association, and in Ontario, The Real Estate Council of Ontario. Continuing education is one of the components, how a Realtor practices is another. There are severe consequences for Realtors who do not follow the regulations. Why? To add consumer protection and maintain the integrity of the industry. General public “classified ad” websites DO NOT provide this level of protection. One cannot expect the general public to know all the intricacies of a listing and there is currently no way to enforce accuracy of private sales with the general public. This, and the fact that MLS systems and Realtor.ca are privately owned, are the core reasons why The Canadian Real Estate Association will not open the doors of Realtor.ca to the public.
In light of that, never before, has the Consumer had more choices as to how they wish to be represented or NOT represented in their desire to purchase or sell real property. If a consumer wishes to sell a home by themselves without the assistance of a Realtor, there are numerous avenues available for them to do so. The choice is theirs.
If one chooses to work with a Realtor, the Realtor brings much value to the table. Realtors study and practice real estate. Market knowledge and consumer protection are just some of the advantages Realtors provide. There's much more to it than putting up a sign! We have had situations where clients on their own would have made undesirable decisions. It is a gratifying experience to have been able to prevent that from happening!
In short, when you work with a Realtor, you are getting expertise and experience. That's what you are paying for. Realtor.ca is not the key component it is being made out to be, the Realtor is. Realtors would be just fine without it.
Yes...we Realtors make it all look very easy. No wonder some of the Public believe our compensation is not 'in sync' with our labours. But for most, this is the largest financial investment one will likely make in their lifetime. I ask this question...if you were accused on criminal charges...would you choose to represent yourself in the Courts? If your vehicle suffered extensive damage in an accident...would your personally perform the body work to repair it? The answer? Some individuals will, but a greater number of individuals will call upon the services of a professional and expect to compensate the professional for those services.
Consumers have the choice and consumers will continue to have choice.
Home Sales Surge in February
February has seen the most residential home sales in this month for over two decades, boasting a 43.4% increase over 2009 single detached sales, and marking a 31.7% increase over January. The average sale price of a single detached home in Kitchener Waterloo was $324,631, up 15.8% over last year.
The Big Questions...
Should Kitchener and Waterloo almagamate? What does it mean to the homeowners these two cities? Let us know what you think!
First Time Buyers
Mortgage changes for first time buyers considered modest. The condition to qualify on a 5 year fixed rate instead of a 3 year results in an approximate $50 difference in a typical payment, since there is not much difference between a 5 and 3 year rate.
City of Waterloo - Rental Housing Licensing Review
Rental housing licensing in Waterloo is currently under review by city staff. The review proposes licensing of rental properties be restricted to certain areas or become city wide. The purpose of the proposed licensing program is to protect the health, safety and welfare of residents in rental units as well as minimizing the impacts on residential neighborhoods in terms of property standards, lot maintenance, numbers and scale of rental units, according to a June 16, 2009 report. The City's concerns with the current system are: too many rental properties concentrated in certain areas, poor upkeep of properties, parking concerns, safety when building are not maintained and do not comply with Codes, behavioral issues, and the ability to apply the Lodging House by-law to other forms of rental housing.
The City's proposal would require all rental properties be licensed, fees estimated at $275.00 per year would apply. Minimum distance of 150 m between rental properties would apply. A cap on the number of bedrooms to a maximum of 3. The City would have increased powers to enter a property for inspection and enforcment purposes. New penalties for non compliance.
The costs of the program are estimated at approximately $821, 577 per year.
The proposed program will have a negative effect in certain circumstances. Out of town families wishing to purchase a property for children attending university with the intention of renting to fellow students will become difficult, if not impossible to do. First time home buyers hoping to rent to help offset mortgage costs as well as individuals aquiring investment properties will also be adversely affected.
When applying property owners will be required to provide various inspection reports, proof of tenancy, proof of insurance, and parking, floor property maintenance and waste management plans.
City staff recommends that Council receive and review the new proposal.
Multiple Offers
January has been an active market in Kitchener Waterloo real estate! We are increasingly seeing a return to multiple offers on attractive listings. For sellers this is good news. The listing often sells for a higher than list price. For buyers, it can be stressful. Only one can win.
Lance recently attended a presentation by Bill Johnston M.A., LL.B., President-Elect of the Toronto Real Estate Board to better serve our client's interests.
There are many more options than accepting or procuring the highest offer. Consult a Realtor! Call us for your real estate needs.
What's happening on Ira Needles Boulevard?
West side Waterloo will soon have much anticipated new shopping and services available on Ira Needles Blvd. Boston Pizza has finished construction and is now open as well as Starbucks at the Canadian Tire plaza. A little further south on Ira Needles the land is being prepared for the largest shopping center in Waterloo Region. This spring will see the construction begin with the area's first Lowes Home Improvement Warehouse. The development will also see a Walmart, Empire Theater, Kelsy's, Milestones, & Montana's restaurants, a fitness center, fashion shopping and services as well as new office space. Construction will be in phases over 5 years. Stay tuned!
HST
Possession of new homes must be on or before June 30 2010 to avoid HST. The new tax will also affect resale homes as it will be applicable to legal fees, chattels, high ratio insurance premiums, home inspection fees, real estate commissions, title insurance, moving costs, appraisal fees, surveys and more. Why wait?!
Record home sales kick off the New Year!
The Kitchener Waterloo Real Estate Board reports the best January ever! Home sales jumped 64 percent compared to January 2009. Total dollar volume was also up from January 2009 by 84 percent. The average price of a single detached home rose to $316,913, up 13.6 percent over last year. Great activity for the start of the New Year!
