Record Low Home Sales Volume in March, as Inventory Begins to Climb

WATERLOO REGION, ON (April 4, 2024) —In March, a total of 596 homes were sold via the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR). This represents a decrease of 3.2% compared to the same period last year and a decline of 33.4% compared to the average number of homes sold in the previous 5 years for the same month.

Despite the challenging market conditions, the first quarter of 2024 saw an increase in home sales, marking an 8.0 per cent rise compared to the previous year. However, these figures still fall short of the first-quarter sales of the past decade.  

“While home sales in Waterloo Region hit a record low for March in over two decades, we're also witnessing a positive trend,” says Christal Moura, president of WRAR.  Over the past three months, prices and activity have started to pick up, and I expect this momentum will continue into the spring.”   

Energy-Saving Tips for Your Home

With energy costs eating up a larger portion of our income than ever before, it is very important to take all possible measures to conserve energy.  Here are some tips to help you save energy, save money, and do your part for the environment.

Heating and Cooling
About 60% of energy costs in a typical home are tied up in heating and cooling and 20% in hot water. So, these are the first places to look when it comes to saving energy.

Consider installing a programmable thermostat. In summer set the thermostat at 24°C while you are at home, and 28°C when you are away. Every degree you raise can reduce your cooling bill by about 2.5%.

In winter, set the thermostat to 21ºC during the day to 18ºC when you are sleeping, and 15ºC when you are out.

Wrap your electric water heater in an insulation wrap. This reduces 8-10% of hot water heater energy usage.

Apply caulking and weather stripping around drafty doors and windows to keep the cold air out in the winter (or hot air out in the summer). Proper weather-stripping, caulking, and insulation can save 5 to 15% of that heat loss.

Shade your outdoor central air conditioning unit with trees or shrubs making sure you do not block air flow around the unit. This can reduce 10% of your electricity use.

Clean the furnace filter monthly and replace it every three months. Check air vents regularly to ensure nothing is preventing the air from circulating freely.

It's a simple scientific fact: heat moves toward cold. In winter, heat moves toward the windows and doors, and if your home windows are not insulated properly, up to 50% of all heat inside a home could be lost. Having thermally-isolated windows and a thick window covering will help reduce heat loss considerably.

Lighting
Keep fixtures and bulbs clean. Dirt can absorb as much as 50% of the light. Always turn off the lights when leaving a room, even if it’s only for a few minutes. It’s just a myth that it takes more energy to turn a light on than to leave it on.

Try to position floor or table lamps in a corner. This allows light to reflect from the walls, making the room brighter without turning on more lights.

Replace traditional light bulbs with compact fluorescent bulbs (CFL). CFLs use up to 75% less energy than comparable standard light bulbs and can last up to 10 times longer.

Kitchen and Bathrooms
Switch non-essential chores from peak times to earlier in the day or even overnight when electricity demand and rate are less.

Install water-efficient low-flow showerheads and faucet aerators and install an ultra low-flow toilet or an early closure valve. Take showers instead of baths – they use less water.

Keep refrigerators and freezers out of direct sunlight, and allow at least 5 centimeters all around (or as recommended by the manufacturer) to allow heat to escape from the compressor and condensing coil. Allow hot foods to cool before putting them in the refrigerator.

The stove is another big energy guzzler. If you put aluminum foil on the bottom of the oven to catch drippings, make sure the foil does not block any of the oven’s circulation holes, and don’t put foil on the oven racks.

Use an electric kettle to boil water – not the stove, which is less efficient. Thaw frozen foods in the refrigerator before cooking, unless the label says otherwise.

Turn off the oven just before finishing – the oven will remain hot long enough to complete the job.

Don’t use a bigger pot than you need, and match it to the right size element.

Home Office and Living Room
Even when appliances are turned off, they continue to draw electricity. Unplug them when not in use. Turn off unnecessary lights in the house (they produce a lot of heat which works against the air conditioning.)

Using screen savers doesn't save any energy. Activate energy-saving settings on your computer or turn off your monitor when you are away from the computer.

Use area rugs on cold floors. If your feet are cold, your body will feel cold so rather than turning up the thermostat, put on a sweater.
 
Open draperies during the day on south-facing windows and let the sun heat your rooms naturally. Close your drapes and blinds during the night to reduce heat loss.

Installing ceiling fans can help to lower energy use in both the summer and winter. In summer, set your fan counter-clockwise to produce a cooling breeze. In the winter, set it clockwise to push warm air accumulated near the ceiling down back into the room.

Dishwashers and Washing Machines
If your dishwasher has the option, choose air drying rather than heat drying. If not, stop the machine before the drying cycle starts and open the door to let the dishes air dry. By doing so, you can reduce the dishwasher’s energy use by 10%.

Avoid running small loads in your washing machine. You can save 1% on your energy costs by loading your washing machine to capacity before running the cycle.

Wash laundry in cold water whenever possible. Rinsing your clothes in hot or warm water won’t make your laundry any cleaner. Select your washing machine’s cold water rinse and save 4% in energy costs.

Energy saving is a hot topic! Talk about it with your friends and family. Discuss and share ideas and learn about how each of you can do better. Most likely you will come up with some creative ideas that are fun and can save you up to hundreds of dollars each year. Learn about how this topic fits into broader-scale environmental initiatives and the role we as energy consumers could play in saving Mother Earth.

First-Time Homebuyer's Tax Credit

The First-Time Home Buyers Tax Credit (HBTC) is one of the measures provided by the federal government in 2009 to encourage investment in Canadian housing.

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit was $750. Each year, the credit is recalculated, so it may be higher or lower than previous years.

How do you qualify for the tax credit? 
You and anyone you purchase the home with must be considered a first-time home buyer to be eligible for the tax credit. The home must be used as your principal residence, and if you purchase with your spouse, common-law partner, or even a friend, then either one of you can claim the credit (or share it). However, the combined total cannot exceed $750.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. See the Government of Canada website for further details.

What is a qualifying home? 
To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums, and apartments. A share in a cooperative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies.  However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

How to Claim the First-Time Home Buyers Tax Credit? 
First-time homebuyers purchasing a home may claim the HBTC on their income tax returns. Starting with the 2009 taxation year, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system.

Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Keep the HBTC in mind when you consider buying a Canadian home. It’s just another great reason to take the final step of real estate home ownership.

Build a Greenhouse for Early Spring Planting

With spring just around the corner, many homeowners have gardening on their minds. The seed catalogs are well-worn from repeated flipping of pages. Seeds have been ordered, and some early bedding plants have been started. Many of us are itching to get outside and start seeding the garden, but it is too early. The days are warming but the nights remain too cold to allow seedlings to survive.

One way out of this dilemma is to build your own portable greenhouse. A simple greenhouse can consist of some wooden frames that are bolted together and assembled in the garden. The greenhouse can be easily dismantled and folded flat for storage. It can be built to any size specifications, depending on your needs. Many home-depot stores sell preassembled DIY kits that can be put together easily in one afternoon at very reasonable prices.

The floorless greenhouse allows light and heat to enter but prevents some of the heat from escaping. Thus, the temperature inside the greenhouse increases during the day. The soil over which the greenhouse is placed stores some of this heat. During the night, when the outside temperature is cold, the heat gradually escapes from the soil but the greenhouse holds enough of this heat to prevent frost from damaging the plants inside.

The system works well if the air temperature is not too cold, though additional frost protection can be achieved by using internal and external curtains.

The greenhouse can be set over the garden area in the early spring (March). For best results, the garden should be located in an area that receives full sunlight. As the air temperature builds up inside, any snow covering will melt and the ground will begin to warm. By mid to late March it is often possible to seed directly into the soil "floor" of the greenhouse. Only plants that tolerate a cool growing season, can be seeded early. Warm-season crops such as require much more warmth than this greenhouse can provide.

As the days become warmer, too much heat may build up inside the greenhouse. It is very important not to let this happen, or you might lose your crop. The simplest solution is to leave the greenhouse door partly open to provide ventilation. When the days become quite hot, remove the greenhouse. In September it can be taken out again and placed over the garden patch to extend the growing season.

Home Staging Tips

Home Staging is a proven system for preparing properties for sale. Your aim is to present your home in the best possible light to win the hearts of prospective buyers. With Staging, the focus is shifted from the furnishings to the home itself, the views, the space and the unique features of the property.

In preparing your house for selling you need to take a step back and have the mindset that this is no longer your home but your investment. You want your home to stand out from the crowd and have a broad buyer appeal. Following these 10 tips will help you sell your house sooner and possibly for more money.

1. Curb Appeal – stand back and view your home as if you were seeing it for the first time. This is the ‘first impression’ stage. Depending on the season you may want to have lots of colourful and attractive flowers to greet buyers; a clean and inviting doormat; new and shiny door handles and/or knockers with a freshly painted door.

2. Declutter – start your pre-pack as soon as possible. You need to decide what you are going to keep, give away, sell or throw away. You may rent storage lockers so you can start to clear out what is not going to make the house look good.

3. Clean – you would think this one is common sense but let me assure you, I wish it was so! A clean home translates into “They must have really cared for their home.” Use environmentally friendly cleaners where you can and for hard cleaning areas, tsp is a good product. Bathrooms and kitchens must be sparkling clean at the very least.

4. Depersonalize – we know you love your family photos and your personal treasures and for living they are perfect. However, when it comes to selling your home, you want buyers to focus on the best features of the house and not your personal collection. Pack personal items and photos carefully and store them away so you can showcase them in your new home.

5. A neutral colour scheme is a way to go for selling. Choose only three colours or less to paint your house for selling. If you have an open floor plan then paint the main floor all the same colour. Bedrooms look good in light sage greens or warm blues like the new Aqua.

6. Highlight your home’s best architectural features – place your furniture in each room so that you have very obvious focal points that show off the home’s best selling features. For example, if you have a beautiful fireplace then place the furniture in a parallel grouping so that the eye is drawn to the fireplace.

7. Decide on the function in each room – if you were using your guest bedroom as your a living room, for selling turn it back into a bedroom with bedroom furniture in it. If you do not have the right furniture for each room consider renting it. There are more and more rental furnishing companies opening up every day. If you don’t want to rent then borrow.

8. Lighting your home to its best advantage – spend money on new light fixtures in brushed nickel or stainless steel. Brass is out so don’t fight it. There are many low-cost lighting stores to select from so no excuses for having dated light fixtures.

9. Use window treatments that sell your home – the most popular on the market are the 2” faux wood in a white tone to go with your trim. Decorative side panels will do the trick if you need to add warmth and colour.

10. Flooring needs special attention and is a good investment for updating the look of your home – tile or linoleum is great for entranceways, bathrooms, kitchens, laundry rooms; a good quality laminate or hardwood is perfect for living rooms and family rooms; bedrooms are attractive in a neutral carpet.

By planning and budgeting, you can get yourself to the “OPEN HOUSE READY” stage. Remember that over 79% of prospective buyers have already checked you out through the MLS listings. Will they like what they see?

Happy Selling!

Thinking of Upgrading Your Front Entrance?

A new front entry upgrade instantly improves your home’s curb appeal and is a smart investment that saves energy and adds value to your home. In a recent survey released by the National Association of Realtors, the replacement of an exterior door held the most value and recouped the most cost of any exterior improvement project.

Many advances in the past ten years have made new front entry doors more energy efficient. For example, the new steel and fiberglass front entry doors have dense cores that make them more effective at insulating your home and resisting heat build up compared to solid wood doors. As an added bonus, the majority of these new front entry doors are not easily dented or dinged, nor do they warp or split like a traditional custom entry door, making them somewhat maintenance-free as well as perennially visually appealing.

Here are a few tips to consider when choosing your entry door to ensure you find the perfect fit for your home.

1. Door Styles
A front door reflects the personality of a home and the family who lives there. The style is one element of your home’s design, so it should compliment and enhance the overall look and feel. Style can be casual, traditional, formal or artistically reflect influences from around the world.

In most cases, the front door is the focal point and you should choose a door style with supporting glass accents, door trim, light fixtures and shrubs to create a front entry that captures the eye. If the door plays a supporting role to more intricate landscaping, you might select a simpler door style to play a role within the larger image you’re creating.

2. Consider Your Environment
You need to consider the environment that your door will face. Your entry door is the first line of defense against the elements. If your door cannot stand up to the wind, snow, rain, heat, cold and more you will lose money in energy costs every year. Your entry system is comprised of more than just a door – the components that make up the system (the frame, sill, hinges, lock, and more) also determine how efficient and durable your entry door is. With premium components your door can withstand the elements and last for years.

3. Wood, Fiberglass, or Steel?
There are three basic options for entry door material – wood, fiberglass, and steel. Each has its advantages and disadvantages, it is important to consider each carefully and determine which suits your needs best.

• Wood – Wood doors are considered the go-to choice for high-end projects. Since wood has an implication of being upscale it’ll make any home appear more extravagant and sophisticated. Natural wood textures can complement any number of architectural styles and bring undeniable character and charm to a home. Remember though that continuous care, maintenance and a professional grade finish are musts to ensure long-term performance and beauty with a wood door. Key factors in wood door performance are adequate roof overhang, minimal sun exposure, and proper sill height.

• Fiberglass – Fiberglass doors offer durability and beauty. There are hundreds of fiberglass options available that offer the look of real wood, but unlike real wood, fiberglass will not expand or contract as the weather changes. Fiberglass doors offer superior durability, resisting denting, splitting, cracking, and warping to offer long-term performance. Properly finished, most fiberglass doors can go years without needing a paint or stain touch-up.

• Steel – The most affordable option for entry doors is steel. Steel doors may offer excellent strength, security and insulation, but are very susceptible to denting resulting in difficult and expensive repairs. Compared to wood and fiberglass, steel doors do not stand up as well to normal wear and tear.

4. Components, Accessories and Features
As stated earlier, your entry door is about more than just your door slab. It is about all the components, accessories and features that make up the entry system. There are a number of features to consider before purchasing an entry system:

• Security – When it comes to security, consider the material you chose and the lock accessories available. While steel is often touted as stronger than wood or fiberglass, the difference is not significant. Regardless of which door material you choose, make sure the door slab fits tightly into the frame and make sure the door is fitted with secure, high quality door locks. Multi-point locks provide superior security and help prevent warping, wind deflection and drafts which help keep heating cooling costs low and the elements out.

• Door Frame (Head, Jamb, Mull, Sill) – A continuous frame system provides a consistent foundation to maximize stability and functionality. Make sure that your frame is going to stand up against the elements. Look for wood composite systems that won’t absorb water like real wood as this will help prevent rotting and warping.

• Glass – If you can imagine it, you can get it. There are hundreds of glass options to choose from – clear glass, decorative glass, full view, half view, single sidelite, double sidelite, arched, rectangular, and the list goes on. Glass can add beautiful character to your entry system, however make sure that you research the energy and privacy ratings before purchasing so you are not surprised later.

5. Do Your Research
With thousands of manufacturers, hundreds of dealers, and endless options to choose from, research your options before making a purchasing decision. You want your entry system to last for years to come so don’t skimp out and go for the lowest price – find the best value. Make sure the system you choose reflects your style, fits your needs, and will hold up to the environment. Your entry system is one of the most heavily used and visible parts of your home.

7 Factors that Affect Your Home's Value

There are many factors that can affect the market value of your property, ranging from home improvements to the mood of the seller. All of this is a lot to internalize, but you can make an informed decision while pricing your home if you tackle these issues one at a time.

1. Location
Your home’s proximity to public transportation, train stations, shopping facilities, schools, etc., plays an import factor in determining your property’s market value. Every area has a high end and a low end. The market value of your property is affected by that reality. People that purchase homes in “lower end” areas expect to pay less than they would if they bought the same home in a “higher end” neighbourhood.

2. Features
One of the key factors in your home’s value is the features it provides. For example, some house styles are more popular with buyers than others. The age and size of your home compared to other available properties also plays a part in affecting your home’s value.

3. Condition
Potential buyers will take into account the condition of your home in deciding if they want to buy it and how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a top dollar sale than one that is lacking the most basic routine maintenance.

Experienced buyers look for important conditions like paints, floor coverings, walls, ceilings, floors, doors and windows. Buyers may also pay close attention to the plumbing, electricity work, repairs, bathrooms, kitchen, and so on.

4. Home Improvements
Most people think that home improvements are a sure way to increase the value of a home. Major home improvements are unquestionably important factors that affect the property value. Improvements like room additions, bedrooms, bathrooms, kitchens and other items like floor tiles, swimming pools, etc., can increase the value of your home. However, it only matters what those improvements are worth to the buyer.

5. Market Conditions
When the market is flooded with similar properties for sale and real estate buyers are scarce, you can expect to sell your home for less than you would if there was a shortage of supply and lots of eager potential homebuyers.

6. Seller Motivation
Seller motivation is also a major factor which affects the offer price made by the buyer. For example, if you bought a home in a new area you may be willing to accept a lower price to quickly complete the sale of your current home.

7. Marketing 
The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property. Your agent’s level of skill and expertise in the negotiating process will affect the amount of money you’ll be able to get for your home. Many people put more thought into what they’ll have for dinner tonight than who they will trust to market their most valuable asset. Don’t make the same mistake.