By Warren McNeil 

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.  

January 2008 – March 2008 (All Categories, All Areas)

CATEGORIES	JANUARY 08	FEBRUARY 08	MARCH 08
Homes Sold	381	493	606
Homes Expired or Withdrawn	193	152	205
Homes for Sale At End Of Month	1553	1709	1733
Total Residential Activity (So/Ex/Wd/Ac)	2127	2355	2544
Sale Price vs. List Price Ratio	98.3	98.6	98.3
Average Days on the Market	50	45	43
Average Selling Price (All Categories)	$263,860	$260,121	$253,815

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.

Thanks for reading,

Rising housing values and lack of inventory

challenge first-time buyers, says RE/MAX

“Homeownership continues to be primary objective”

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues.  Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

Doom and gloom reports coming from south of the border have yet to hinder overall momentum.  First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They’re determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.

Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report.

First-time purchasers continue to play a pivotal role at both a local and national level. The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges.  As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. 

The best value for the dollar continues to be found in the suburbs.  For those unwilling to sacrifice on location, small condominium units in new developments and condominium conversions of rental buildings offer up the next best alternative. Condominium conversions in some of the country’s major centres can be picked up as low as $150,000 to $175,000.

By Warren McNeil,

The spring market is in full swing now. New listings are showing up on your streets and they are selling pretty quickly. Welcome to the spring market.  If you have been out househunting then you know how difficult it can be to find the house that you want. Multiple offers seem to be pretty common lately. If a new house comes on the market and is competively priced, there is a really good chance it will be swiped up right away. Unlike the winter market, spring brings people out in droves. Swimming pools open up, gardens are overflowing with tulips and the buyers come out of hibernation.

Parents who have children in schools like to househunt in the spring so that they can buy and then be ready for the new school year. So if you have been thinking of selling but are hesitating, then you should really take advantage of the hot market and time of year now. There is a higher demand for homes during the spring. If you are a buyer, you need to act fast. It is a really good idea to get pre-approved so that when it comes time to make an offer, you are all ready. Watch MLS closely and have a realtor email you listings so that you have first dibs on them as soon as they come up. Be ready!

Whether you are a buyer or a seller, the spring market is a terrific time to sell and buy.

Here are some tips for getting your house ready to sell in the spring:

1. Clean up the garage, basement, yard (pretty obvious )

2. Paint

3. Shampoo the carpets

4. declutter. Since you are planning on moving, why not get a headstart and start packing things away.

5. depersonalize by removing family photos and other personal items

6. Do any repairs. (e.g fix screendoor, windows, leaky faucets, running toilets, clunking pipes)

7. re-organize (People have told me that cleanliness and organization demonstrates pride of ownership. I’d have to agree with that!)

8. Rent a storage unit (Be careful though. Some items can get damaged if not in a climate controlled environment)

9. Ask other people what they think you should do to make your house more presentable/saleable. Be open-minded even if somebody suggests something that might not be in your taste. Put yourself in buyers shoes.

10. Stand in front of your house and check curb appeal.

11. Hire a home stager and listen to their advice. If you are not going to do the things they ask, then save your money. In my opinion a staged home will get you more money.

One other thing I want to leave you with is if you really want to sell and I mean really really want to sell your home, then you will. We have dealt with many sellers who didn’t care whether they sold or not. Buyers pick up on this and may decide that your house is not right for them.

Last but not least, price your house competively. 

Thanks for reading!

By Warren McNeil

Hello everybody, it has been a long time since I have made a blog post. I was away to beautiful Hawaii where the temperature was a constant 84 degrees. The trip was amazing. We flew out of Detroit. Good thing we did because the Toronto airport was apparently closed down. In Detroit, we were delayed 1 hour because they had to de-ice the plane. Pretty scary stuff for a person who doesn’t fly very often. We visited two islands, Oahu and Big Hawaii. When we landed on Big Hawaii I thought I had landed on the moon with all the lava rock everywhere. We visited Pearl Harbour, Honoloulou Zoo, a Luau, Volcanoe National Park and many other places. It was a really good time.

While I was there I couldn’t resist looking at real estate. The median house price on Oahu according to the local paper was $675,000. That sure is alot more then I would be willing to spend on a vacation home right now. On Kona, we visited a condominium situated right on the Ocean and it was priced at $505,000. Apparently it was priced at $100,000 below assessed value. This sounds like it would be a good investment considering a couple years ago the market value for these units was apparently over $700,000. All I can say was there were lots of houses for sale. I even had the chance to see the Trump tower on the Waikiki Beach Walk. Pretty impressive building. It apparently sold out in less the 8 hours.

Back to Kitchener and Waterloo. Spring is in the air and the housing market seems to be really picking up. The Spring market is usually very strong in our area and it is starting to show evidence of that. I am happy to say, it looks like this is going to be a good year for the real estate market here. Interest rates are stable, supply seems to be a little low but if you wait long enough you can usually find a pretty good home. I seem to be spending alot of time with student investers and parents of students who want to invest in real estate here. The UofW, Wilfred Laurier and Conestoga College are the three big schools in the Waterloo Region and we are seeing people buying investments properties instead of paying rent. This makes a lot of sense if you are able to do it. 

One last thing I wanted to mention before I finish up here is if you are ever looking for a place to board your dogs, I highly recommend Contry Paws Kennels in St Agatha. Their website is http://www.countrypawskennel.com/. Glenda, the business owner, was absolutely amazing. She took really good care of our dogs. We have an older Cocker Spaniel (15yrs) and she had some diarea and wasn’t eating properly so they made special arrangements to take her to the vet and get her some special dog food that would be more gentle on her stomach. I was totally impressed by their level of service. The care was top notch! Please use their kennel, I know you won’t be disappointed.

Thanks for reading!