Home office tax deductible expenses

One of the great virtues of starting a home business is the tax breaks you can claim. However, claiming aggressive write-offs is a sure way to attract CRA auditors. In this article, we'll look at some of the more popular home business write-offs as well as some tips on how you can legitimately claim them.

1. Keep business records

If you wish to claim tax deductibles on your home office expenses, you must get into the record-keeping mindset. You need to establish a means of keeping track of the money that is coming in and the money that is going out. Being audited is not the end of the world. However, being audited and not having the records to back up your deductions can be a nightmare.

The more detailed your accounts are, the easier it will be to face an audit. Compiling your daily reports into a monthly tracking sheet will drastically shorten the time it takes you to get your taxes together, and it will have the added benefit of providing a snapshot of your business month-to-month.

2. Write off your workspace
Writing off a home office can be particularly attractive if you have a line of work that can be neatly confined to a dedicated room. You can still write off part of a shared room, but in either case, the space is calculated as a percentage of the total house or apartment area. That percentage is applied to all the related costs, including utilities, insurance, rent or mortgage payments, and so on.

3. Update your business equipment
Office furniture, software, computers, and other equipment are all 100% deductible within the year that the cost is incurred - you don't need to depreciate. There is an upper limit and the purchases must be majority-usage (primarily used) and necessary or helpful for business.

4. Business phone and internet
If chatting with clients is a necessary part of your business, it may be worth getting a second phone line or a dedicated business cell phone, as both of these are 100% deductible. If you only converse with clients occasionally, you can still write off the costs by noting the dates, times, and reasons for the calls and then circling the items on your regular phone bill to deduct at tax time.

You can also deduct part of the cost of your internet if you use it for business. There is no absolute percentage to use, but it will be difficult to write off more than 50% if other members of your family are using it for non-business purposes. Be reasonable and pick a defensible percentage that you won't regret in the case of an audit.

5. Entertainment expenses
You can wine and dine clients (preferably paying or likely to pay clients) and get a tax break. The tendency for business owners at all levels to abuse this write-off has scared many home business owners away from claiming it. However, it is acceptable for you to take out a client for a meal and some entertainment. It will be easier to defend a $200 deduction for a client who has brought you a lot of business than the same meal for a buddy who paid you $20 for an hour's work over the entire fiscal year.

6. Take a trip, not a vacation
Have to hit the road to expand your market? Save your receipts. On business trips, your travel expenses are 100% deductible and your food expenses can be deducted at 50% of the total. Keep all of your receipts because even things like dry cleaning and tips are considered a necessary expense when you're out-pounding the pavement in new markets.

7. Automobile expenses
When it comes to automobile expenses, you can claim registration, repairs, oil changes, and gas. But it’s important you keep a log of the kilometres you are travelling for business on a daily basis, because you may need to prove how frequently you use your car for business.
 
8. Employ (not just pay) your family
You can use family members as employees and deduct their salaries as long as you account for their work and pay the going rate. If you have a business that lends itself to having a spouse and kids help out, then use that labour pool. You'll likely pay less than market rates for the help, and you can deduct insurance premiums for them as well.

9. Make justifiable deductions
Just because you have a home business doesn't mean you can go crazy with deductions. If you don't think you can face down an auditor with detailed proofs justifying the deduction, then perhaps it isn't a deduction you should be taking.

The CRA's T2125 form — Statement of Business or Professional Activities — needs to be filled out to claim these expenses. Page 3 of this form deals with the calculation of what is called business-use-of-home expenses.

Most tax software programs will let taxpayers claim home office expenses, although you may want to upgrade to a more expensive version that caters to the self-employed or small-business owners.

Working from home can result in big tax savings. But the rules are strict and the paperwork can be formidable. It might be wise for first-time claimants to seek the help of a professional.

How to increase affordability when applying for a mortgage

The key to a successful mortgage experience is carefully considering all your options and buying within your means to sustain your payments. Borrowers unsure which approach is best can rely on certain time-tested strategies to avoid overextending themselves.

Here are a few tips to boost affordability when arranging your mortgage:

1. Know what you can afford. 
A mortgage pre-approval helps you establish a price range and the maximum mortgage you can reasonably afford.  Most lenders will lock in a rate for up to 120 days when pre-approving potential borrowers for a mortgage.

2. Revisit your current debts. 
When applying for a mortgage, a lender will look at your total debt service ratio (TDS), or how much of your total income is going towards various types of debts, including car loans, credit cards, and other consumer loans.  A mortgage broker can advise on restructuring your current debt (by increasing the amortization and lowering payments on your car loan, for example), to ensure that your TDS ratio is acceptable to prospective lenders.

3. Look into a longer amortization. 
Some lenders offer mortgages with amortizations longer than the traditional 25-year amortization which results in a lower monthly payment.  Those opting for a longer amortization should plan to make lump sum payments down the road or increase their monthly payments (say, after receiving a salary increase), to lessen the amount of interest they pay throughout the life of their mortgage.

4. Increase the size of your down payment. 
Increasing the size of your down payment means a lower monthly payment.  A common way for first-time buyers to come up with more cash for a down payment is to make use of the federal Home Buyers' Plan to withdraw up to $20,000 each from a registered retirement savings plan (RRSP) without tax penalty to buy or build a qualifying home.  Also, many lenders allow the down payment to come from a properly documented gift, and a borrowed down payment may be possible for some borrowers.

5. Consider locking in your rate for a longer period.
If you’re uneasy about fluctuating interest rates and your ability to meet any increases, then a fixed-rate mortgage could be a good fit.  Many lenders are open to longer fixed terms, up to 10 years in some cases.

Buying a home during the holiday season

 

The year-end holiday season is a good time for gift-exchanging, entertaining, and general merriment. But what about buying a house? Should you try to do that in November or December, too?

If you're not picky about the home you intend to buy, the answer might be yes. Sellers tend to avoid the end of the year due to the short days, winter weather and conventional wisdom that says buyers are otherwise occupied. But those who do choose to sell at year-end are often under pressure and highly motivated to cut a deal.

Advantages:

1. Less Competition
 Lots of family, school, and work activities, combined with the weather in many locations, lead to fewer real estate transactions over the holidays. Since fewer people are looking to buy houses, you will have less competition for your preferred house – and this gives you leverage.

Holiday home sellers often have to adjust their price downward or make other concessions if they want to sell. Keep this in mind as you search for homes. Bargains may be available, and listed prices may be more open to negotiation.

2. Motivated sellers
People who are selling their homes over the holidays often have great incentive to sell, such as an upcoming job relocation. If a house has already been on the market for some time, that incentive is multiplied.

Companied with less competition from other buyers during the holiday season might mean you'll be able to negotiate a favourable price for a home you want to purchase.

3. Better interest rates
Due to limited demand and greater competition among lenders, you may be able to negotiate an abetter interest rate, during the holidays compared to other times of the year.

4. Faster closings
Generally speaking, all parties involved in the home-buying transaction have an incentive to complete it before the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before the year closes, sellers want to move on to their new home and settle in for the holidays - and just like the sellers, you want to settle in as well.

Since all parties are motivated and there are fewer transactions taking place during this time, it should be easier to put everything in place for a smooth and rapid closing.

Disadvantages:

1. Fewer homes for sale
The biggest downside is the limited supply of for-sale homes, which occurs mainly because sellers are so uninterested.

If you can't find a home you like, you might be able to tap into homes that aren't on the market. One strategy is to research what brokers call "old expires," which refers to homes that were for sale several months ago but weren't sold at that time.

Another approach is for the broker to send letters to homeowners in your preferred neighbourhood, trawling for someone who's willing to sell a home that meets your criteria.

A third technique is to call brokers who sell a lot of homes in your target area and ask them about homes that aren't yet listed, but are being prepared for sale and are "coming soon."

2. Seasonally obscured defects
One pitfall in winter house shopping is that homes might have defects hidden by the snow, only to be discovered by thaw in spring. That should be a concern for buyers in the winter season.

Snow covers a lot of things, so make sure you understand the landscaping and that the sellers aren't trying to hide something.

Photographs of the home taken earlier in the year and a home inspection can help mitigate some of the risk that a home might be listed in the snowy season to hide its faults.

3. Difficult to get professional help
Not only sellers and buyers but also real estate professionals like to take time off from work in November and December. Realtors and mortgage brokers have friends and family, too.

That said, many pros do work during these months, precisely because they know many buyers have vacation time to devote to year-end house hunting.

Individual mortgage brokers also might take some time off at the end of the year. But it would be unusual for a mortgage company or bank to be closed on any normal business day other than the official holidays.

Either way, it's a good idea to ask your agent what his or her plans are so you won't be caught off guard or left hanging if your calls or emails suddenly aren't answered as quickly as you'd expected.

If you're a serious buyer, you needn't be shy about intruding into sellers' homes at a time normally reserved for family and friends. If a seller is willing to put their house on the market during the holiday season, they really want buyers to come in.

The weather may be unfavourable, but your opportunities to buy a home around the holidays may be just as delightful. Enjoy the holiday season as you explore your options. Don’t forget to give Santa your new forwarding address!

Affordable ways to enjoy the holidays this season

 

Fun family activities during the holiday season do not have to have a high price tag. By doing a little research and pre-planning, many families can enjoy free or inexpensive kid-friendly entertainment during the holidays that can create lasting cherished memories. Here are a few ideas:

Make your own decorations
Decorating your house for the holidays can be expensive both in purchasing the items and on your electric bill. The easiest way to save money is to make your decorating simple. For example, don’t hang as many lights as you have in previous years.  You can use some extra time to make handmade gifts and ornaments, bake special treats, learn to play holiday music on an instrument, enjoy the beauty of nature in a season that is usually rushed and frantic, and have one-on-one time with your family.

Look for free local holiday activities

Churches, local businesses and public libraries usually run festive activities during the holidays. These events are almost always free of charge. Holiday church functions range from plays to musicals, to live nativities. They usually love to have the public attend these events. You can find out about various public holiday functions in your local newspaper.

Take your kids to holiday parades
Nearly every city has an annual holiday parade. They typically take place sometime between Thanksgiving and Christmas. Local parades are a source of free fun that can turn into a yearly tradition. Many times, free entertainment takes place before the actual parade as well. Adults and children alike enjoy watching decorated floats, marching bands, horses, Santa, and everything else that makes up a typical parade. If you and your family absolutely love parades, you can attend ones in neighbouring cities as well.

Shopping malls

Shopping malls are usually beautifully decorated for the holidays, and it can be a treat in itself to visit them and admire the decorations. Walking around, window shopping, and enjoying light refreshments can make for a very pleasant evening. If you keep an eye on the shopping centre's website, you will probably notice some free activities they will have around the holiday as well. Some of these free activities include concerts, tree lighting, indoor parades, visits from Santa, and free horse-drawn carriage rides.

Host a potluck dinner
If your family hosts a dinner for family and friends, make it a potluck dinner. Ask each family to make their favourite dish or drink to bring to the dinner.  As the host of the party, you can provide the main course.  This will help take the burden off your budget and still enjoy a wonderful holiday dinner. It will also allow others to showcase their signature dishes.

The holidays are a time to celebrate with loved ones. This does not imply you should spend more money than you have. A celebration should be enjoyed by all. Celebrating it with family and friends is all that is required to enjoy your holidays.

November 2024 Home Sales Surpass November sales levels for 2023

WATERLOO REGION, ON (December 4, 2024) —In November, a total of 539 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 21.1 per cent increase compared to the same period last year and a decline of 13.1 per cent compared to the average number of homes sold in the previous ten years for the same month.

“Home sales in the Waterloo Region experienced a substantial increase in November compared to last year. However, sales were down from the previous month and remain below the historical averages for the area,” said Christal Moura, spokesperson for the Waterloo Region market. “November has shown more balanced conditions, and the increase in available homes has benefited buyers, giving them more options.”

Total residential sales in November included 331 detached homes (up 23.5 per cent from November 2023), and 113 townhouses (up 37.8 per cent). Sales also included 51 condominium units (down 17.7 per cent) and 44 semi-detached homes (up 37.5 per cent).

In November, the average sale price for all residential properties in Waterloo Region was $754,604. This represents a 0.2 per cent decrease compared to November 2023 and a 3.3 per cent decrease compared to October 2024.

• The average price of a detached home was $862,690. This represents a 3.1per cent decrease from November 2023 and a decrease of 2.6 per cent compared to October 2024.
• The average sale price for a townhouse was $615,222. This represents a 0.9 per cent increase from November 2023 and a decrease of 4.9 per cent compared to October 2024.
• The average sale price for an apartment-style condominium was $452,732. This represents a 0.5 per cent increase from November 2023 and a decrease of 6.2 per cent compared to October 2024.
• The average sale price for a semi was $643,672. This represents an increase of 4.5 per cent compared to November 2023 and a decrease of 1.0 per cent compared to October 2024.

 “Current market conditions, marked by increased inventory and stable prices, suggest that now might be a good time to buy,” says Moura. “This is especially true for those who can take advantage of lower interest rates and recent mortgage reforms. These reforms expand eligibility for 30-year mortgage amortizations to all first-time homebuyers and buyers of new construction. Additionally, a higher limit on insured mortgages will take effect on December 15, 2024.”

There were 889 new listings added to the MLS® System in Waterloo Region last month, an increase of 2.4 per cent compared to November last year and an 18.4 per cent increase compared to the previous ten-year average for November.

The total number of homes available for sale in active status at the end of November was 1,565 an increase of 20.0 per cent compared to November of last year and 57.8 per cent above the previous ten-year average of 992 listings for November.

The total inventory across the market increased by 16.7 percent, resulting in a 2.8 month supply of all property types by the end of November. Condominium apartments had the highest inventory, with 5.9 months’ supply, followed by townhouses with 3.9 months’ supply and detached homes with 2.0 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 November was 27 days, consistent with the previous month. In November 2023, it took 24 days for a home to sell, and the five-year average was 19 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/

How to Add Style to a Small Living Space

Decorating a small space can be challenging, especially if you are moving from a home to a small apartment. Fortunately, there are many easy and affordable ways to convert your small apartment into a stylish sanctuary that is cool, comfortable, and never feels cramped.

1. Select small furniture. 
A small apartment living room can easily be overwhelmed by excessively large furniture. Many home decor stores like Ikea understand this and offer a large selection of apartment-friendly furniture. If you have a large piece of furniture, make sure it does not dominate the room by adding colorful smaller accent pieces.

2. Create an attractive focal point with your piece of furniture.
Creating a focal point in each room helps the room feel more cohesive and less cluttered. Whether it is your sofa, a window, or a favourite piece of art, a focal point helps draw attention to one area of the room, providing a distraction from any less attractive areas.

3. Use tall items to draw the eye upwards.
Use stacks and tall items to draw the eye upwards to create the illusion of higher ceilings. If your windows are small try purchasing long curtains and hang them as close to the ceiling as possible. Not only will this create a beautiful focal point, but also gives the appearance of a larger window.

4. Choose a cohesive color scheme.  
Use paint colours and fabric swatches to create an attractive colour scheme and use it throughout the apartment. Having a unified colour scheme creates a designer feel and makes your space feel pulled together.

5. Keep clutter to a minimum. 
Create areas for your art collections where they can be displayed together. If you have a problem finding storage in your apartment be creative and make your own. Many stores like Lowes carry affordable storage systems that you can install yourself.

6. Use mirrors to your advantage. 
Placing mirrors and other reflective surfaces opposite of windows and other light sources creates the illusion of more light and makes space appear larger than it really is.

7. Add your own artwork. 
Creating your own art is a fantastic way to personalize your space. Choose what interests and appeals to you and run with it. Let your imagination go wild and create a painting or project tailored to your home.

8. Accessorize
Once you have established and arranged your furniture, it’s time to accessorize. Use items that you already own; small coffee tables, books, and other accessories can complement your furniture and make your space look more stylish. Small or unusual games like Japanese puzzle boxes also make interactive and attractive accessories. Remember, your living room is for living in, not staring at—make it fun, functional, and fabulously decorated.

Choosing Outdoor Lighting for Curb Appeal and Safety

Well-executed exterior lighting can enhance the architectural detail of your property and makes your home look beautiful in the evening adding an abundance of curb appeal.   Aside from aesthetics, good exterior lighting can give you and your guest’s added security and peace of mind when entering and leaving your home.

Much of the success of exterior lighting depends mainly on its design. Professional lighting designers often talk about the “moonlight effect.” That’s a naturalistic look that features light no more intense than that of a full moon, but still strong enough to make beautiful shadows and intense highlights.

A well-lit front entrance enables you to greet guests and identify visitors. Wall lanterns on each side of the door will give your home a warm, welcoming look while assuring the safety of those who enter.

Install a single fixture above the garage door to provide lighting for safety and security. Consider installing a motion sensor on these fixtures or a photocell that turns the lights on at dusk and off at dawn to save energy.

Another important factor is making your home secure and safe from intruders and animals. Good lighting around the entire perimeter of your home can be a deterrent in itself. Illuminate any side of the house that would otherwise be in shadows. Spotlights installed on your eaves will accomplish this, or, for a more dramatic look, consider ground lights pointed up to graze your walls.

Steps, paths, and driveways should be illuminated to make sure family members and guests are able to move about easily and safely after dark. You can install path lights or post lanterns or attach lights to the side of the house.  Low-level path lights, which spread circular patterns of light, will brighten your walkway while highlighting nearby flower beds, shrubs, and ground cover. Low-level path lights can also be used to define the boundaries of long driveways.

If you have added exterior features like a swimming pool, an exterior porch, or an entertaining space, ensure these areas are well-lit as well.

Choose lighting fixtures that look beautiful, but also throw light a good distance away from your home. This will help illuminate dark areas and aid your vision to see outside from inside your home. If you have a large property, flood lights installed on the corners of your home will help throw light further than average wall sconces on the exterior of your home.

Another consideration to keep in mind is to select outdoor light fixtures that are energy efficient and made of durable material to suit the harsh outside temperatures during the hot summer days and cold winter nights.  In most cases, fixtures made of cast aluminum are a very durable option.

Engage the Buyers' Senses When Selling Your Home

Every seller wants his or her home to sell fast and bring top dollar. It's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks.

Your home will be judged not only on its outward appearance but also on the feelings it evokes in those who view your property. Follow these simple tips to prepare your house and turn it into an irresistible home.

Sight
Use light to showcase your home. Open draperies in the daytime and turn on lights (day and night) to accentuate a cheerful atmosphere. If you have a fireplace, burn a Duraflame log. De-clutter and remove any personal photographs and any potentially offensive posters or religious signs.

Sound
Consider playing soft background music while people tour your home. If there is exterior noise, such as traffic or nearby construction, work with your sales agent to schedule showings around noisy times of the day.

Smell
Make sure your home is sparkling clean. Grind a fresh lemon in a garbage disposal or boil cinnamon sticks to add a clean, fresh scent. Candles and flowers look nice and smell pleasant as well. Lingering scents of strong-smelling foods, smoke, or pets should be aired out before showing your home.

Taste
Realtors and home stagers say that one of the most appealing smells to people is freshly baked cookies. Bake a small batch of cookies before every show (or at least on the weekends when there will be multiple showings). This not only adds a pleasant scent to the home but also adds to the hospitable home atmosphere. Potential homebuyers may also appreciate a cookie or lemonade.

Add a human touch
Your home should appear livable. Update the look by making simple changes like rearranging furniture and accessories, painting, and adding stylish and practical pieces.

Buyers who come with agents are more at ease when the owner's not around, so it is best if you take your children and pets on a short walk during the showing. To ensure your safety, remember to remove keys, jewelry, and other valuables from your home during showings.

The key to getting your house sold is to make it stand out from the comparable real estate properties around you. This process is best done by making an emotional lure with a lot of bait. That bait comes in the form of unique characteristics of livability. Use plenty of hooks, and people looking to purchase a home will swarm to your bait and take it.

Winter Home Maintenance Checklist - maintain your home AND your home's value!

With the winter just around the corner, it’s time to get your house in shape for the cooler months ahead. Although autumn can be one of the busiest seasons for homeowners preparing for winter, it’s also the best time to take advantage of the moderate weather to repair any damages before the first frost sets in. Here are some home maintenance tips to keep your home running in peak condition all winter long.

Outdoor Preparation

• Check the roof for cracked or missing shingles, bald spots on shingles, missing or damaged flashing, and other conditions that might allow leaks. Replace any roof shingles that are missing or damaged. Seal minor cracks or tears with roofing cement.
• Check the gutters. If they are clogged with leaves and debris, clean them. Gutters prevent basement and foundation flooding and water damage to siding, windows, and doors.
• Check the siding for cracks or damage and seal any leaky spots with a clear caulking compound.
• Windows and doors. Ensure they are properly sealed with weather stripping and replace damaged parts. Weather stripping prevents drafts and winter heat loss.
• Trim trees and bushes away from the house.
• Cover air conditioner and barbecue to prevent winter damage.
• Store lawn and patio furniture in a shed or basement. If space is limited, use weather-resistant covers that can protect outdoor furniture.
• Close your pool before leaves start to fall and night-time temperatures begin to drop, otherwise you may risk an algae bloom.
• Drain and shut off outdoor water faucets and remove and store garden hoses.
• Store kid's toys indoors or in an outdoor shed to prevent rusting and fading.
• Check and repair exterior lighting before daylight fades.
• Scrape peeling paint and apply touch-up paint to your siding, trim, and fences, and apply waterproofing sealer to your deck if necessary.
• Examine driveways and walkways for cracks. Larger cracks should be sealed to keep out water.

Lawn and Garden

• Prepare planting beds when the soil is relatively dry. By adding soil and mulch to your beds, you'll be a step ahead for spring planting.
• Plant spring-blooming bulbs and perennials.
• Protect roses, saplings, and small trees by sheltering them with a burlap screen.
• Pull weeds to reduce the number of seedlings next spring.
• Mow grass short for the final cut of the year by reducing the cutting height gradually to 3.5 cm (from 7.4 cm) until the grass stops growing.
• Check ground grading around the house. All surfaces next to walls should be sloped to shed water away from the house. This is most important on warm winter days, as melting snow runs quickly across the surface of the frozen ground. If the grading is incorrect, water will potentially flow into the house, causing basement leakage. Now is the time to use a shovel to re-slope the grass, or call a paving contractor to correct a negatively sloped walkway or driveway.

Indoor Preparation

• Bring container plants inside and make sure they are free of pests. Doing so may enable plants to survive the season and bloom again in spring.
• Caulk around window and door casings to keep out air and water. If your house has wood siding with window frames that stand out from the siding, caulk the top and sides of the frame. Don't caulk under the sill as this space should be left open to allow moisture inside the wall to escape. If your house is brick or stone, with window frames that are set into the finish material, caulk all four edges of each frame where the brick mould meets the masonry.
• Clean or replace furnace filters as needed. Check and clean the dryer vent, air conditioner, stove hood, and room fans. Keep heating and cooling vents clean and away from furniture and draperies.
• Ensure that all smoke detectors, carbon monoxide detectors, and fire extinguishers are in good working order. Replace batteries as needed, or at least twice each year.
• Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend annual inspections.
• Have your chimney(s) inspected by a chimney service and, if necessary, cleaned. Cleaning is generally recommended at least once a year for an active fireplace.
• Store plenty of salt or rock salt, snow shovels, and any other items you will need during the winter.
• Examine the basement floor and walls for cracks or leaks; seal as needed.

If you plan to reside elsewhere during the winter months, you may want to partially shut down your home. In addition to the tips above, consider the following:

• Leave the temperature at its lowest setting, usually between 5 to 7 degrees Celsius, or install a low-heat thermostat to maintain the air temperature at approximately 5 degrees Celsius
• Turn off and drain the water heater; leave a reminder to refill before restarting.
• Keep the electricity on so lights will continue to function (put lights on timers).
• Unplug the microwave, clothes dryer, televisions, and other appliances not in use.
• To avoid large repair bills and the hassle associated with breakdowns, take the time now to develop an action plan for the coming months. You'll feel secure in your warm home or while you're away from home.

Winter can be hard on a house, but following these steps will help preserve your investment and prevent any unnecessary chores or repairs that might be difficult to do during winter.

Home Sales in the Waterloo Region Increased in October

WATERLOO REGION, ON (November 4, 2024) —In October, a total of 604 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 7.1 per cent increase compared to the same period last year and a decline of 14.2 per cent compared to the average number of homes sold in the previous ten years for the same month.

“For the first time since May, we witnessed an encouraging rise in home sales throughout Waterloo Region last month,” stated Christal Moura, spokesperson for the Waterloo Region market area. “This positive trend reflects a shift toward more balanced conditions within our housing market and a renewed confidence among buyers.”

Total residential sales in October included 383 detached homes (up 15.4 per cent from October 2023), and 104 townhouses (down 20.0 per cent). Sales also included 66 condominium units (up 1.5 per cent) and 49 semi-detached homes (up 53.1 per cent).

In October, the average sale price for all residential properties in Waterloo Region was $779,008. This represents a 1.4 per cent increase compared to October 2023 and a 1.4 per cent decrease compared to September 2024.

• The average price of a detached home was $885,587. This represents a 0.6 per cent decrease from October 2023 and a decrease of 2.9 per cent compared to September 2024.
• The average sale price for a townhouse was $643,382. This represents a 0.2 per cent decrease from October 2023 and an increase of 7.8 per cent compared to September 2024.
• The average sale price for an apartment-style condominium was $484,429. This represents a 1.8 per cent increase from October 2023 and a decrease of 0.2 per cent compared to September 2024.
• The average sale price for a semi was $650,098. This represents a decrease of 1.2 per cent compared to October 2023 and a decrease of 0.7 per cent compared to September 2024.

On Wednesday, October 23, Cornerstone welcomed the news that the Bank of Canada cut its policy rate by 50 basis points to 3.75 per cent. This marks the fourth consecutive rate cut since June and is the most substantial decrease since March 2020.  Moura commented, “The interest rate cuts are certainly beneficial for those with variable mortgages and encouraging news for homeowners facing mortgage renewals. However, I believe many prospective home buyers may continue to wait for more significant reductions before making a move, especially with the anticipated mortgage reforms that come into effect on December 15, 2024.”

There were 1,144 new listings added to the MLS® System in Waterloo Region last month, an increase of 0.3 per cent compared to October last year and a 19.9 per cent increase compared to the previous ten-year average for October.

The total number of homes available for sale in active status at the end of October was 1,711 an increase of 21.0 per cent compared to October of last year and 48.5 per cent above the previous ten-year average of 1,153 listings for October.

The total inventory across the market increased by 19.2 percent, resulting in a 3.1-month supply of all property types by the end of October. Condominium apartments had the highest inventory, with 5.5 months’ supply, followed by townhouses with 3.8 months’ supply and detached homes with 2.5 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 October was 27 days, one day shorter than the previous month. In October 2023, it took 21 days for a home to sell, and the five-year average is 18 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.

Waterloo Region Sees Decrease in Home Sales for September

WATERLOO REGION, ON (October 3, 2024) —In September, a total of 521 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a decrease of 2.1 per cent compared to the same period last year and a decline of 23.5 per cent compared to the average number of homes sold in the previous ten years for the same month.

“In September, there was an overall slowdown in home sales, but we continued to see strong demand for detached homes, resulting in an increase in sales for that specific type of property,” said Christal Moura, spokesperson for the Waterloo Region market area. “Meanwhile, buyers have a bit more selection than a year ago as inventory is up, and homes take a little longer to sell. This can mean a less stressful homebuying experience, but for sellers, the current market may require more patience or even adjustment in price expectation.”

Total residential sales in September included 336 detached homes (up 9.4 per cent from September 2023), and 95 townhouses (down 22.1 per cent). Sales also included 57 condominium units (down 16.2 per cent) and 32 semi-detached homes (down 3.0 per cent).

In September, the average sale price for all residential properties in Waterloo Region was $788,944. This represents a 2.9 per cent increase compared to September 2023 and a 2.3 per cent increase compared to August 2024.

• The average price of a detached home was $910,286. This represents a 2.3 per cent increase from September 2023 and an increase of 2.2 per cent compared to August 2024.
• The average sale price for a townhouse was $595,435. This represents a 6.9 per cent decrease from September 2023 and a decrease of 2.7 per cent compared to August 2024.
• The average sale price for an apartment-style condominium was $483,331. This represents a decrease of 3.4 per cent from September 2023 and an increase of 4.9 per cent compared to August 2024.
• The average sale price for a semi was $654,613. This represents a decrease of 2.9 per cent compared to September 2023 and an increase of 0.1 per cent compared to August 2024.

Retirement Living

Retirement isn’t what it used to be. These days, rather than sitting back and watching the roses grow, more of us want to use the extra time, energy, and any cash released from the sale of a property to travel the world or fulfill some other lifelong ambition.

Today’s retirees want somewhere they can perhaps travel from and entertain. Health issues are still there but more people now stay fit for longer, have the spending power, and have the force of numbers to drive change. A whole new home market is growing to meet their varied demands.

Ideally, the perfect "retirement" home provides for the inevitabilities of aging and accommodates changing needs. The closer the home matches your needs, the fewer chances are of a subsequent move.

Whether you decide to downsize to a smaller home or move to a retirement community, the advantages are obvious—smaller homes translate into lower costs and less maintenance. Retirement communities also ensure like-minded neighbours. The lifestyle decision is yours.

Moving can be an overwhelming experience both physically and emotionally, however, preparing yourself for your move can make all the difference in the world. Once you've determined that you're ready to take the plunge, there are many options available to you.

Before you make a decision about where to live in retirement you need to consider many factors: the daily lifestyle you want; the proximity of children, or other relatives and friends; the type of climate you enjoy; and your health or medical needs. Ideally, you should consider these personal and lifestyle factors first. Then you need to face reality. What can you afford? Your choices may be limited to cost, however, if you have planned your retirement carefully, you should have enough funds to cover the monthly expenses for whatever retirement home you choose.

Should I continue to live in my current home after retirement?
Staying in your current home will probably be much more economical if the mortgage is already paid off. If you don’t own the house free and clear, you’ll need to figure out if your retirement income will be high enough for you to continue the payments.

If you want to continue living in your home—as most people do—you should evaluate whether it meets your current and future physical needs. If it requires repairs or remodelling, do you want to undertake these projects, and can you afford the cost? For example, if you or your spouse has a medical problem, you may need to consider constructing entrance or exit ramps, modifying stairways, installing railings, support bars, or other modifications to bathrooms, and grading the ground to provide access to the house.

If you decide that you should move, there are many options available:

Condos and apartments
A condominium lifestyle has been a favourite of empty nesters and retirees since its inception. Condominium apartments and townhomes are available in virtually every price range and neighbourhood. Some of the more upmarket developments have their own swimming pools, gymnasiums, tennis courts, and bowling greens. Others are set in the countryside, by lakes, or are even child-free for those who want peace and quiet.

Condo life has many advantages. In addition to being short on maintenance and long on amenities, condos offer more opportunities to socialize. You will meet neighbours in the halls, the lobby, and the laundry room. Condo living is a good choice for low-key, sociable types who enjoy getting to know other residents.

On average, condos are much more affordable than houses, making them an excellent fit for individuals who want to lower or limit their housing costs. Clearly, condos are the economical choice for retirees hoping to downsize.

Bungalow living
Bungalows provide empty nesters and retirees with the best of both worlds: the opportunity to own a house and a yard with minimal maintenance.

The "bungalow living" concept has surged in popularity in recent years, especially in smaller communities outside major centres. Many empty nesters and retirees are considering the sale of their larger, more expensive homes in the city to purchase less expensive bungalows in more rural areas.

Retirement communities
Retirement communities offer retirees the amenities often associated with condominium living, smaller homes and the opportunity to live with like-minded individuals.

Current-day retirement communities are resort-like in nature. The focal point of these communities is the clubhouse, where a variety of amenities including fitness facilities, tennis courts, game rooms, swimming pools, and in some areas, golf courses are available. For the most part, they're built in rural areas that are close to large urban centres, but far enough away from the hustle and bustle of city living.

These communities are designed to help you with the assistance you need. For example, when you first move in, you may not need a large degree of care and supervision, but as time passes, your needs might increase. This is how retirement homes and communities operate today. They attempt to steer completely clear of the stereotypical convalescent or old folks home. Yet as you progress, should you get sick or need surgery, be assured that all necessary care will be there to assist you.

Giving up the home where you have lived for many years may seem frightening. Mentally, emotionally, and physically it is better to start to think and plan for such an eventuality before you are forced into somewhere you really don't want to be.

If you're uncertain about the alternatives available to you, you may want to speak to your Real Estate Agent. He or she can provide you with a free estimate of the value of your home and help you determine what type of property will best suit your retirement lifestyle.

Tips for preparing your home for Winter

As the winter season approaches and the air grows crisp, it's time to start thinking about preparing your house for the season. Once winter blows in, homeowners have to get serious. It is important to consider the fact that the winter season means spending a lot more time indoors. Roofs must shed rain and snow, windows and doors must reject the cold, and the heating system must keep rooms comfortable. If any of these components don't hold up, you might be faced with scrambling around in the wet, cold, and dark to fix them.

By handling these important yet reasonably easy tasks, you can avoid considerable grief later.

1)  Inspect the roof
If possible, go up onto the roof to check its condition. Look for cracked or missing shingles, bald spots on shingles, missing or damaged flashing, and other conditions that might allow leaks. Replace any roof shingles that are missing or damaged. You can also seal minor cracks or tears with roofing cement or do the minor repairs yourself. 

2) Check the gutters
While you're on the ladder, look into the gutters. If they are clogged with leaves and debris, clean them. Gutters prevent basement and foundation flooding and water damage to siding, windows, and doors. When clogged with leaves and debris, they will fill with rainwater and overflow. 

3) Look at the siding
Check the siding for cracks or damage. You can seal up any leaky spots with a clear caulking compound. But, if close inspection of the paint reveals problems such as blistering, peeling, wrinkling, or chalking, either touch them up or call a painting contractor.

4) Investigate weather stripping
Also, look to see if windows and doors are effectively sealed with weather stripping. Weather stripping will prevent drafts and winter heat loss. If the weather stripping is damaged, it's usually easiest and most effective to entirely replace it rather than to repair it.

5) Check your heating system
Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend at least annual inspections. 

6) Sweep the chimney
Have your chimneys inspected by a chimney service and, if necessary, cleaned. Cleaning is generally recommended at least once a year for an active fireplace. 

7) Trim the trees
Trim trees away from the house. Have dead trees and branches removed by professional tree trimmers, or do it yourself.                                    

8) Check the smoke and Carbon Monoxide detector
Buy extra smoke detector batteries and change them when daylight savings ends. Also, test smoke and carbon monoxide detectors to make sure they work, and buy a fire extinguisher or replace an extinguisher older than 10 years.

9) Store plenty of salt
Make sure you are stocked with rock salt, snow shovels, and any other items you will need during the winter. 

10) Drain and shut off outdoor water faucets remove and store garden hoses,

11) Examine the basement floor and walls for cracks or leaks; seal as needed.
 

If you plan to reside elsewhere during the winter months, you may want to partially shut down your home. In addition to the tips above, consider the following:

• Leave the temperature at its lowest setting, usually between 5 to 7 degrees Celsius, or install a low-heat thermostat to maintain the air temperature at approximately 5 degrees Celsius
• Turn off and drain the water heater; leave a reminder to refill before restarting.
• Keep the electricity on so lights will continue to function (put them on timers).
• Unplug the microwave, clothes dryer, televisions (not on timers), and other appliances not in use.
• To avoid large repair bills and the hassle associated with breakdowns, take the time now to develop an action plan for the coming months. You'll feel secure in your warm home or while you're away from home.

The fall season is a good time for you to start thinking about preparing your home for winter. As temperatures begin to drop, your home will require maintenance to keep it in tip-top shape through the winter. By following the easy steps above, you will ensure to have a warm and comfortable winter at the peace of your home!