By Warren McNeil

Kitchener Real Estate Board Statistics

Here are board statistics for the Kitchener-Waterloo real estate board. Please note that the information here is only based on residential real estate. If you would like a more detailed report, please contact Melanie or Warren.  

November 2007 – January 2008 (All Categories, All Areas)

All information deemed to be accurate and are based on monthly statistics of the Multiple Listing Service gathered by the Kitchener Waterloo Real Estate board.

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By Warren McNeil

Timing could be a factor when trying to get the most money for you house. In different markets, sellers or buyer’s pull the strings.

In a sellers market, there are more buyers then houses for sale. This can lead to many buyers being disappointed and not getting the home they want unless they are willing to pay more money. Multiple offer situations are commonplace in a sellers market. Sometimes sellers get more then their asking price.

In a buyers market, there are more houses for sale then available buyers. This can lead to sellers waiting longer to sell their home or even taking less money. Some implications for the buyer in this type of market are, more negotiating leverage, larger quantity of homes available and longer time to search for a home. 

In a balance market there are an equal amount of available homes to available buyers. Houses usually sell in a reasonable time, pricing is stabilized and sellers are accepting reasonable offers. This type of market is more relaxed.

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By Re/Max 

Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released by RE/MAX.

RE/MAX Decade in Review 1997 – 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership.  Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.  Home sales across the country increased just over 57 per cent from 331,092 units in 1997 to more than half a million sales last year. Edmonton led the country in terms of percentage increase in average price.  The city saw a 203 per cent upswing in housing values – or an 11.7 per cent increase annually – with average price rising from $111,587 a decade ago to $338,636 in 2007.  Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period. 

Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade.  At first, there was an influx of American buyers, especially in Canada’s coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap’ by international standards. In recent years, there have been a growing number of purchasers from Mainland China.  From a global perspective, there’s no question that Canadian real estate brings good value to the table.

Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John’s at 106 per cent, Kelowna at 84 per cent, and Saint John at 77 per cent.  Most markets (12 of the 19 surveyed) reported increases between 40 and 60 per cent.  Average price has also seen substantial escalation over the 10-year period, with posted gains ranging from a low of 54.4 per cent in London-St.Thomas to a high of 203 per cent in Edmonton.  Appreciation in Western Canadian markets surpassed all others between 1997 and 2007, with Calgary ranking second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.

In 2006, homeownership rates in the country were the highest on record at 68.4 per cent.  Population growth has contributed to heated market conditions – especially in Calgary (+31.4 per cent), Edmonton (+20 per cent), Toronto (+20 per cent), and Vancouver (+15 per cent) where percentage increases have hovered in the double-digit range.  Overall, Canada’s population rose to almost 33 million in the 2006 census, up approximately 10 per cent from 1996 figures. 

The non-cyclical nature of the decade comes as some surprise.  Never before have we seen such a continuous run up in Canadian real estate.  Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies.  Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation.

Robust economic performance in Western Canada has also drawn job seekers from across the country, looking to capitalize on employment opportunities.

As demand for housing increased across the country, the supply of homes listed for sale began to contract.   Multiple offers were commonplace in many areas, some with sales-to-listings ratios as tight as 80 to 90 per cent.  Nationally, 1997 marked the first year since 1988 that the sales-to-listings ratio hit 50 per cent.  The sales-to-listings ratio would remain above 60 per cent from 2001 onward – rising to as high as 68 per cent in 2002.       

The decade was not without its obstacles – the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border.   Given the continuation of sound economic fundamentals, it’s expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.

Best Decade Report – Average Price 1997 – 2007

Best Decade Report – Unit Sales 1997 vs. 2007 

By Warren McNeil

The closing date is the date when both parties expect to complete a transaction. This is when the documentation is completed, all monies are paid out and the property changes hands. This date can be anywhere from 30 days to 60 from the date of the agreement. In some cases this date might be longer in new home construction transactions. Sometimes sellers will want to negotiate on closing date if they are buying a brand new home (new home construction). They could end up having to wait 120 days or longer. Rather then stay with friends/family or rent a trailer, it might be more desirable to have a longer closing on their existing house. If a patient buyer is willing to accept the sellers closing date, they might be able to save a little money off of the price. The opposite is also true, if a seller needs a quick closing. Other important dates such as title search and condition dates need to be completed before the closing date.

Your realtor can help you negotiate the best closing date when buying or selling your house.

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By Warren McNeil

This recent cold weather has really made showing houses difficult. I am sure that other realtors can relate to experiences similar to mine. Just this past weekend I ran into a couple of interesting situations. First, on Saturday, I was showing a townhouse and the button on the screendoor was frozen solid. There was no way that I was getting in to show that house. Then I went to another condo and the lockbox was frozen. What a pain in the butt! . My client was very understanding but I was really disappointed that we had to go through these troubles. This is bound to happen though with the kind of weather we’ve been having lately (-20C). I am sure that in colder regions of Canada, they have it a lot worse then we have it here. If only we could carry around a portable hair dryer or heat gun. Or better yet, a lockbox that is impervious to cold temperatures. I think the dial lockboxes might be better then the push button or combo lock variety.

Another thing that can be very annoying is not knowing where the parking spots are. This is usually only a problem if the the parking spot markers are on the snow covered ground and visitor parking is full. We ran into that problem this weekend as well. All first impressions are lost when you have to park a block away and walk to the house in -20C frigid cold weather. That house better show like a new penny to win back some of the interest that was lost. Don’t forget, you still have to walk back to the car so any interest that was there, is lost again. It’s just a lose/lose situation. 

Then comes the discussion about safety. We all must be careful when showing houses in the winter. The roads can be treacherous so extra precautions needs to be made.

Some things to consider when showing houses on a bad wintery day 

* stay home and wait for a better day. This is a very safe option
* allow for extra time between showings
* be courteous to the seller and call the listing agent ahead if we are going to be late
* if the seller decides that we can’t show their house because we ran out of time, we should honour their decision

I always make sure that I allow for ample time between showings so that I can factor in road conditions. I have been fairly lucky with the time schedule because I don’t like to be earlier then the scheduled time. If I am going to be a bit late, I always call the listing agent to let them know that I am running late. I think a little courtesy goes a long way in this world. I find that fellow realtors and their clients are usually accomodating.

Well that’s enough of my rant.

Thanks for reading!