New Home Listings Rise and Sales Decline

 

WATERLOO REGION, ON (March 5, 2025) – In February, a total of 363 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 26.1 per cent decrease compared to the same period last year and a decline of 38.8 per cent compared to the average number of homes sold in the previous ten years for the same month.

“While February’s home sales were affected by concerns over tariffs and their potential impact on employment, the market showed some encouraging signs. We saw a steady increase in new listings while prices remained stable,” notes Christal Moura, spokesperson for the Waterloo Region market. “The month’s significant snowfall created practical challenges for buyers and sellers, affecting property viewings and transactions. However, I am seeing positive indicators in the market, with consistent attendance at open houses, pre-listing appointments, steady mortgage pre-approvals, and buyers on the sidelines carefully watching for the right opportunity to make their move.”

Total residential sales in February included 221 detached homes (down 21.9 per cent from February 2024), and 71 townhouses (down 36.0 per cent). Sales also included 47 condominium units (down 35.6 per cent) and 23 semi-detached homes (down 4.2 per cent).

In February, the average sale price for all residential properties in Waterloo Region was $767,800. This represents a 1.3 per cent increase compared to February 2024 and a 1.8 per cent increase compared to January 2025.

• The average price of a detached home was $900,003. This represents a 1.0 per cent increase from February 2024 and an increase of 2.1 per cent compared to January 2025.
• The average sale price for a townhouse was $613,924. This represents a 2.7 per cent decrease from February 2024 and a decrease of 2.6 per cent compared to January 2025.
• The average sale price for an apartment-style condominium was $437,000. This represents a 5.8 per cent decrease from February 2024 and a decrease of 7.2 per cent compared to January 2025.
• The average sale price for a semi was $670,352. This represents a decrease of 0.5 per cent compared to February 2024 and an increase of 6.6 per cent compared to January 2025.

“As we navigate these shifting dynamics in the Waterloo Region housing market, it’s important to remember that while sales may be down, the increase in inventory reflects growing opportunities for buyers,” said Moura.

There were 858 new listings added to the MLS® System in Waterloo Region last month, an increase of 7.3 per cent compared to February last year and a 0.8 per cent increase compared to the previous ten-year average for February.

The total number of homes available for sale in active status at the end of February was 1,450, an increase of 55.7 per cent compared to February of last year and 68.7 per cent above the previous ten-year average of 860 listings for February.

The total inventory across the market increased by 52.9 percent, resulting in a 2.6-month supply of all property types by the end of February. Condominium apartments had the highest inventory, with 5.9 months’ supply, followed by townhouses with 3.6 months’ supply and detached homes with 1.8 months’ supply. The number of months of inventory represents the time it would take to sell off current inventories at the current sales rate.

The average time to sell a home in February was 24 days, compared to 34 days in the previous month. Likewise, in February 2024, it took 24 days for a home to sell, and the five-year average was 15 days.

Cornerstone emphasizes the importance of consulting a local REALTOR® when considering buying or selling property in the Waterloo Region. Their expertise can provide valuable insights into the current market conditions, enabling individuals to make well-informed decisions aligned with their goals and preferences.

View our HPI tool here to learn more: https://www.cornerstone.inc/stats/

The Benefit of On-Demand Tankless Water Heater?

 Before you fall in love with a home, you should ensure that you qualify for a mortgage so you have the peace of mind of knowing that your financing has been arranged.

Getting pre-approved for a mortgage should be the first step in your home search process. Not only will this help you determine how much money you can spend on a house, but it will also help convince sellers that your offer is serious. In fact, some sellers will not accept an offer unless it comes with a pre-approval letter from a well-known lender.

A pre-approval can tell you how much you will qualify for, hold an interest rate while you shop, and help avoid pitfalls when it is time to buy so do not miss this important step in your home search process.

A pre-approval is not a binding commitment, but rather an indication that the lender is willing to extend a mortgage to an applicant once a suitable property has been found and secured via a real estate contract. It is usually valid for 90 to 120 days. The final decision is generally subject to certain conditions being met before the mortgage is finalized such as the appraisal of the real estate is high enough to protect the lender in the case of default, the property title is clear and the property meets inspection standards, plus many other factors.

Even though you have been pre-approved by a lender, it is best practice to include a condition of financing in the purchase agreement to give you time to gather your documents and the lender time to review and give final approval to your application. Once you have a signed purchase agreement, the lender will require written income verification and proof of down payment, as well as proof the title is clear, the property meets inspection standards, and the appraisal of the property is high enough to protect the lender in case of default.

As soon as you receive pre-approval, you will be in a solid position to make an offer on your preferred house, and motivated sellers will be much more inclined to accept your offer. Your mortgage pre-approval letter can make the entire process go more smoothly. The pre-approval letter can also place your offer ahead of others that are comparable. After all, the process of closing on a home can be long and tedious, especially for a seller who needs to move quickly. Therefore, if the seller has to choose between accepting two similar offers and yours is the only one that comes with a mortgage pre-approval letter, the odds are high that you will be the one who ends up signing on the dotted line.

The Importance of a Mortgage Pre-Approval

 

Before you fall in love with a home, you should ensure that you qualify for a mortgage so you have the peace of mind of knowing that your financing has been arranged.

Getting pre-approved for a mortgage should be the first step in your home search process. Not only will this help you determine how much money you can spend on a house, but it will also help convince sellers that your offer is serious. In fact, some sellers will not accept an offer unless it comes with a pre-approval letter from a well-known lender.

A pre-approval can tell you how much you will qualify for, hold an interest rate while you shop, and help avoid pitfalls when it is time to buy so do not miss this important step in your home search process.

A pre-approval is not a binding commitment, but rather an indication that the lender is willing to extend a mortgage to an applicant once a suitable property has been found and secured via a real estate contract. It is usually valid for 90 to 120 days. The final decision is generally subject to certain conditions being met before the mortgage is finalized such as the appraisal of the real estate is high enough to protect the lender in the case of default, the property title is clear and the property meets inspection standards, plus many other factors.

Even though you have been pre-approved by a lender, it is best practice to include a condition of financing in the purchase agreement to give you time to gather your documents and the lender time to review and give final approval to your application. Once you have a signed purchase agreement, the lender will require written income verification and proof of down payment, as well as proof the title is clear, the property meets inspection standards, and the appraisal of the property is high enough to protect the lender in case of default.

As soon as you receive pre-approval, you will be in a solid position to make an offer on your preferred house, and motivated sellers will be much more inclined to accept your offer. Your mortgage pre-approval letter can make the entire process go more smoothly. The pre-approval letter can also place your offer ahead of others that are comparable. After all, the process of closing on a home can be long and tedious, especially for a seller who needs to move quickly. Therefore, if the seller has to choose between accepting two similar offers and yours is the only one that comes with a mortgage pre-approval letter, the odds are high that you will be the one who ends up signing on the dotted line.

Different Types of Home Ownership

 

The laws covering property ownership may differ from province to province in Canada. In general  (aside from sole ownership) there are five basic ways for two or more individuals to own real estate. Each person involved in ownership in the transaction should obtain his or her own independent legal advice as to the method of ownership and potential liability as an owner.

Joint tenancy
Under this type of ownership, each owner owns equally. Joint tenancy typically means that should a purchaser become deceased, the remaining purchaser(s) on the title will inherit the deceased's interest in the property. Where one of the "joint tenants" dies, the surviving joint tenant(s) usually automatically becomes the owner(s) of the property no matter what a will might state. This is the manner of holding titles most commonly used by spouses.

Tenants-in-common
Under this type of ownership, each owner’s share can be different (e.g. John owns 90% and Jim owns 10%). Tenancy in Common means that should a purchaser become deceased, the deceased person's interest in the real estate will be transferred according to that person's will. If no will exists, then the law of the province will apply.

Condo ownership
Condo ownership has rapidly become a feature of North American cities.  Condos, lofts, and other variations (such as townhouses) are all available.  A condo owner gets title or ownership of the individual unit and has sole responsibility for maintaining that unit, but they also acquire an interest in the condo corporation that owns the common elements of the building or community. Condo owners pay a monthly fee to the condo corporation as their share of those expenses to maintain the common elements. 

Condo ownership can look easy, but the transaction is a little more complicated than a regular house purchase.  For example, there are many documents that must be prepared and registered to ensure that the entire project—not just the one condo that may be being purchased—is legitimate under the provincial condominium laws.

Life interest
A life interest form of ownership entails giving a person the right to live in, occupy or use a piece of property for as long as they live.  When they die, they lose any interest in the property.  This type of ownership of real estate can be useful in a situation, for example, where a man wants to let his second wife use a property until her death, at which time it would go to his children from a first marriage.

The partnership agreement
If more than one person will be shown on the title as owner and, if only one person is providing all (or a substantial portion) of the funds needed for the purchase, you may wish to consider entering into a special partnership agreement to avoid any future misunderstanding with respect to the distribution of proceeds upon a resale of the property. Should you wish such an agreement to be prepared for signature when you sign the final closing documents, please inform your real estate lawyer.

One of the features of such an agreement is to return to each purchaser whatever cash was originally contributed by each purchaser at the time of completing the transaction as well as any additional contributions made to improving the property during the period of ownership. Other features of the agreement deal with the distribution of the balance of proceeds once the property is eventually resold and what happens if one partner wishes to sell and the other partner does not. Each partner should consider obtaining independent legal advice before entering into a partnership agreement.

Tax Deductions!

 Many taxpayers overpay their taxes simply because they fail to claim some of the common deductions and credits they are entitled to. As a homeowner, there are several home tax deductions and credits that you can claim.

Before you submit your next return, check the following list. It represents the most frequently overlooked tax breaks available to typical working Canadians.

First-time home buyer’s tax credit
If you are buying a home for the first time, you can claim a non-refundable tax credit of up to $750. This new non-refundable tax credit is based on a percentage of $5,000. You or your spouse or common-law partner can claim the home buyer’s tax credit.

GST/HST tax rebate (new housing rebate)
If you buy a new home as your principal residence, and if it’s less than $450,000, you may be able to claim the GST/HST new housing rebate too. Ontario and B.C. residents may also claim the provincial portion of the HST if they buy, build or do a major renovation on their principal residence. Other home tax deductions exist for homes that are built by the owner as well as for residential rental properties.

Home Buyer’s Plan
The Home Buyer’s Plan allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSP) to help with the purchase or construction of a home. Certain conditions apply. Submit a request by completing the T1036 tax form that is available.

Medical expenses tax credit
Persons with mobility impairments can claim renovation expenses to make their home more accessible under medical expenses deductions in Canada. The government provides an extensive list of eligible medical expenses as well as medical expenses that you cannot claim. 

Moving expenses
If you move within Canada, your moving expenses might be an allowable tax deductible. You must be employed, and your new location must be at least 40 kilometres closer to your place of work. Starting a business would qualify, as would moving away from home to take your first job. If the deductions are greater than earned income, they can be carried forward for one year to realize the full tax benefit.

Expenses that can be claimed include hiring movers or renting a van to move yourself, breaking a lease, furniture storage, meals and lodging for you and your family while traveling, and legal fees and real estate commissions if you have to sell your home.

Work-from-home expenses
If you are using your house as part of your business — a home office for example — you can claim a deduction for that part of the home that is used to conduct business activities. If you are a homeowner you can claim a portion of your mortgage interest, property taxes, and capital cost allowance. If you are a renter you can claim a portion of your monthly rent. You can include in your deduction a share of the utilities, insurance, or home maintenance allotted to the area of the house set aside for business use. For each of these expenses, you can claim a percentage equal to the percentage of your home that is reserved for business.

You can’t use these items to create a loss that could be deducted against other sources of income, however. Of course, any expenses solely related to the business, such as supplies, travel, and client entertainment, are fully deductible. CRA forms T2124 and T2032 contains a guide entitled “Calculation of Business-Use-of-Home Expenses” that will help you calculate your allowable claim.

Rental income
If you rent a property you own or that you have use of, use the T776 tax form to report rental income and claim allowable expenses such as advertising, insurance, and interest on the money you borrow to buy or improve the property.

Childcare tax credit
In most cases, childcare expenses for an eligible child must be claimed by the parent with the lower net income for tax purposes.  If parents are separated and share custody, each parent may usually claim a portion of the childcare costs.  Where a medical doctor certifies in writing that the lower-income spouse is incapable of caring for the child due to physical or mental infirmity, the costs may be claimed by the higher-income spouse.

Eligible child care expenses include daycare centres and day nursery schools, some individuals providing child care services, day camps and day sports schools, educational institutions such as private schools (the portion of tuition costs relating to child care services), boarding schools, and overnight sports schools and camps.

Provincial credits
Manitoba homeowners benefit from two other home tax credits: the Education Property tax credit and the School Tax Credit for homeowners. In Ontario, homeowners can apply for the Ontario property tax credit and the Senior Homeowner’s Property tax credit.  For more information, please consult the CRA website http://www.cra-arc.gc.ca

How to help a child deal with moving anxiety

 Moving can be stressful for every member of the family—children included. Depending on the age of children, their fears about a move vary from child to child, but most children approach the idea of moving with some hesitation.

One out of five Canadian families move into a new home each year. Some families experience a stressful time two weeks before and two weeks after a move. For many families, the actual move is a time when everyone pitches in and works together. Reality starts to sink in about a month later. People then begin to realize how much they miss friends and places they left behind. Confusion, frustration, and anger are common emotions at this time. Even if you are upgrading to a bigger house in a nicer neighbourhood, adjusting can be very difficult.

If the move is coupled with financial problems, a death or divorce, this can make the anxiety worse, stretching children's coping skills to the limit. Short-term counseling may help children through this challenging time.  It often takes as long as two years before children begin to feel comfortable in their new home.

No matter what the reason for a move, coping is especially tough for kids. Small children thrive on predictability and their sense of security is closely tied to familiar faces, places and activities. Older children will feel the social impact of a move the most. They miss old friends and worry about making new ones. For pre-teens and teens, fitting in is of the utmost importance and having to re-establish themselves in a new and possibly very different social environment is a scary prospect.

Fortunately, there are several things you can do to make the move easier on your kids.

1. Share the news
As soon as a decision has been made to move, share it with your children. Encourage your child to discuss the future transition by asking questions such as, "What have you been thinking about the new place?" Make a list of your child's concerns and together try to find answers to the questions. When speaking about the move, be enthusiastic and upbeat so that your children will view moving as an exciting adventure.

2. Encourage your child to participate in moving decisions and preparations
Consult with your child about the décor of his or her new room. Let your child pick the paint colour, the fabric for curtains and bedspread, and choose posters for the walls. Younger children typically resist change of any kind. If this is the case with your child, it may help to replicate the décor and furniture arrangement of his or her old room as closely as possible.
 
3. Move during the right time of year
Sometimes, holding off your move can be difficult, especially when it comes to job situations.  The start of the school year is often the ideal time to schedule a move since it will offer your children the most exposure to neighbourhood kids. Chances are that there will be more than one "new kid" in school. If your child does not want any added attention, this will help him or her blend in with the rest of the student body. It is also best to avoid switching in the middle of the year, as this may affect your child's grades.

4. Allow your children ample time to say goodbye to their friends before your move
Although the days leading up to the move will certainly be a bit hectic, a going away party can really help your child cope with moving. One of the main objectives of coping with any type of situation is finding closure. Saying goodbye to friends is very important if you want to help your child better cope with moving.  Encourage children to exchange addresses and telephone numbers so that they can keep in touch after the move. Remember, your children's friends will feel a loss after the move too.

5. Make meeting new friends easier for your child
The best way to help your child cope with moving is to make meeting new friends easier. Allowing and even encouraging your child to invite friends over to the house is a great way to help your child make new friends. If you move during the summer, you may want to help your child find new friends. Whether your child meets other children from the new neighbourhood, the park, the public swimming pool or anywhere else, you will be able to feel comfort knowing that your child has made some new friends—which is a major step in coping with a move.

6. Let your child know it is natural to feel apprehensive
He or she may be fearful of not being accepted by peers. Share childhood memories of times when you were worried about a new situation. Relate the good things that happened like how you met your best friend or that your new teacher was one of your favourites. Keep the days leading up to the transition as positive as possible.

7. Encourage your child to participate in after-school activities
It is believed that children who participate in after-school activities feel as though they fit in better, mainly because they feel as though they "belong". Encouraging your child to join a group, club or organization of his or her choice is a great idea. It just may be one of the best ways for your child to find new friends or experience some sense of belonging. After-school activities may be one of the main keys for a child to cope with a move.

8. Invite your child to express his or her emotions
Even when a concern seems minor to you, be respectful and know that it can be a major crisis for your child. Try to put yourself in his or her place and understand the feelings expressed. Ask open-ended questions like, "How's it going?" or make comments like, "You seem sad". Then listen carefully and avoid giving advice unless your child asks for it.

9. Help your child explore ways to cope with concerns
Try to always be available for further discussion. Be ready to problem-solve with him or her. You may want to role-play a situation that is causing anxiety.

10. Allow your child to call or visit old friends
Allowing your child to visit, or converse with, old friends is a very important step to coping with the move. Whether it is during the weekend or during a week in the summer, if you move far away, visits with old friends may be necessary. There are going to be some instances in which your child may want someone to confide in about the move. It is also important to keep in mind that your child's new friends will never replace his or her old friends. Overall, it is definitely safe to say that allowing visits with old friends can be a very important step in coping with moving.

11. Monitor your child's progress
It is important to keep in mind that there is only so much that you can do in order to encourage your child to cope with moving. Monitoring your child's progress of coping can be very important. If you notice that your child experiences behavioural changes, does not seem to make friends after you have been settled for a while, is unwilling to participate in after-school activities and seems a bit depressed, then there just may be cause for alarm. If your child does not seem to be coping well with moving, visiting a therapist may be a good idea.

In general, younger children will adjust more quickly to a move than older children. Babies and toddlers may feel a bit out of sorts in a new environment, but they will adapt very quickly. Preschoolers have established comfortable routines and usually have a few favourite places, such as the park or the local zoo. If they express worries about missing these places, assure them that there will be plenty of fun things to do near the new house too. School-aged children often have very specific concerns about living in a new place and may have questions such as, "Where will I keep my toys?" and "Will my new teacher be nice?" Remind them about times that they have had similar worries in the past, such as when they first started school and how everything turned out just fine. Saying things like, "Remember when you were scared that you wouldn't like your teacher this year? Now you love Mrs. Brown. I'm sure that you will do just fine at your new school too."

Teenagers often have the most difficulty in adjusting, especially if the move means that they will be too far away to see their current friends. A teenager's world revolves largely around their friendships, and breaking those bonds can be traumatic. Most teens are able to make the adjustment but expect the transition to take a while—six months to a year is typical.

Moving is stressful for everyone. But it is particularly stressful for children because they don't know as many ways to cope with a new situation. Trying some of these tried-and-true methods may ease your child’s apprehension and help him/her cope better with the stress of the new move.

Colour psycology and painting

 

Knowledge of how colour affects your conscious and subconscious mind can change your life. It can inspire you to discover more about yourself and to embrace who you are. The colour scheme that you select for a room can create the mood of the individuals who enter the space. Psychologists believe that colour can inspire people to action, conjure up memories from the past, promote intellectual thought, or even calm the human spirit.

When you prepare to select paint colours for decorating, consider the effect that the colour scheme you choose will have on people in the space. Below are some examples of colour and the mood that it inspires.

Neutral colours like sand, shell, coral and pearl create a sense of peace and well-being. Natural tones have historically been known for creating a mood of serenity in human beings. These are excellent colours for walls and furniture, with other shades being used for accent pieces throughout the décor.

Gray, blue, red, burgundy and cranberry creates a mood that inspires intellectual thought. These colours also lead the individual to think of travel and education. While many may consider some shades of these colours to be too bold, the colour red, for example, is sharp and clean, leading to a mood of intellectual security and freedom. Depending on the shades of these colours, they can be used as either one of the prominent colours in the room or as accent colours that compliment neutrals.

Bubble gum pink, buttercup, wintergreen, all the berry colours and crayon colours are playful colours that can create a mood of excitement in any room. The decorator should be careful in the use of these colours because if overdone they can also lead to an exhaustive feeling after a period of time. Yet, when used in moderation these colours lead to a mood of movement, activity, playfulness and freedom. When used in a child’s room, for example, these colours should be offset by both natural and intellectual colours in order to ensure that the mood of the room does not create a mood of too much activity.

Colour psychology has become an important part of the interior design project in the last few decades. Colour psychology focuses on how colours that exist around us create moods, or induce certain emotions.

Red: The colour red inspires passion and intimacy. It is a good choice when you want to stir up excitement, particularly at night. In the living room or dining room, red draws people together and stimulates conversation. In an entryway, it creates a strong first impression. Red has been shown to raise blood pressure, speed respiration and heart rate. It is usually considered too stimulating for bedrooms, but if you’re only in the room after dark, you’ll be seeing it mostly by lamplight, when the colour will appear muted, rich, and elegant. Red, the most intense, pumps the adrenaline like no other hue.

Yellow: The colour yellow captures the joy of sunshine and communicates happiness. It is perfect for kitchens, dining rooms, and bathrooms, where happy colours are energizing and uplifting. In halls, entries, and small spaces, yellow can feel expansive and welcoming.

Blue: While some people may contend that blue is a cold colour, colour psychology focuses on blue as a tranquil and calm colour because it can be associated with water. Blue is an excellent choice for bedrooms, guest rooms and living rooms. With so many shades of blue to choose from, there are many possibilities with blue as a central colour in the décor of your home.

Green: This colour is considered a natural, peaceful inclusion in decorating. Colour psychology suggests that green can be used in any room because it is welcoming and inviting. Many people elect to use green in their kitchens, either as a central colour or as an accent colour because of the traditional use of kitchens as a gathering place for families and friends.

Orange: Most people associate orange with Halloween. Colour psychology suggests that this is because orange creates a mood of warmth and seasonal change that brings happiness in the fall season. Orange is a good colour to use in living rooms or family rooms for this reason.

Violet: An important colour in colour psychology, violet is considered the most effective colour when attempting to create calm and tranquil moods. Many modern operating rooms will paint their recovery areas in violet for this reason.