Waterloo Region's Housing Market Shows Signs of Improvement

 

In January, there were 375 homes sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), representing an increase of 25.4 per cent compared to the previous year and a decline of 7.4 per cent compared to the previous 10-year average for the month.

“January is traditionally a slower time of year for home sales, but it’s reassuring to see the increase compared to last year,” says Christal Moura, president of WRAR. “This time last year, we hit an all-time low in January home sales, and while this year has begun with sales below the historical average, the market is showing signs of improvement.”         

Total residential sales in January included 206 detached (up 15.7 per cent from January 2023), and 85 townhouses (up 39.3 per cent). Sales also included 56 condominium units (up 30.2 per cent) and 19 semi-detached homes (up 11.8 per cent).

In January, the average sale price for all residential properties in Waterloo Region was $762,174. This represents a 0.1 per cent decrease compared to January 2023 and a 3.2 per cent increase compared to December 2023.

• The average price of a detached home was $911,262. This represents a 2.9 per cent increase from January 2023 and an increase of 7.5 per cent compared to December 2023.
• The average sale price for a townhouse was $638,162. This represents a 2.0 per cent increase from January 2023 and an increase of 2.7 per cent compared to December 2023.
• The average sale price for an apartment-style condominium was $446,146. This represents a decrease of 10.0 per cent from January 2023 and a decrease of 8.7 per cent compared to December 2023.
• The average sale price for a semi was $631,995. This represents a decrease of 2.9 per cent compared to January 2023 and an increase of 3.1 per cent compared to December 2023.

“We are optimistic that this year will have more stability than last,” says Moura. “With the Bank of Canada holding steady at a 5.0% benchmark interest rate, they recognize the overall economy has slowed down. However, housing is a key metric, and we expect the Bank to maintain a balanced response so long as housing continues with moderate growth in 2024 rather than any dramatic increases.”

President Moura points out that navigating shifting markets is a challenge and encourages consumers to work with a local REALTOR to ensure they receive the depth of local market knowledge required to protect their interests.

There was 720 new listings added to the MLS® System in Waterloo Region last month, an increase of 23.5 per cent compared to January last year and a 3.9 per cent decrease compared to the previous ten-year average for January.

The total number of homes available for sale in active status at the end of January was 855 an increase of 33.4 per cent compared to January of last year and 1.2 per cent below the previous ten-year average of 865 listings for January.

At the end of January, there were 1.5 months of inventory, a 50.0 percent increase compared to last year and 15.4 percent above the previous 10-year average. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

“With the exception of condo apartment property types, we saw mostly yearly and monthly price gains across the housing types,” says Moura. “This is because there is more supply in the condo segment (2.8 months) compared to the other property types.”

The average number of days to sell in January was 33, compared to 25 days in January 2023. The previous 5-year average is 20 days. 

These statistics provide a snapshot of the real estate market in the Waterloo Region in January, showing both positive and challenging aspects for buyers and sellers. WRAR encourages buyers to reach out to local Realtors for valuable insights about the current state of the local market and to receive tailored advice based on their specific needs.

View our HPI tool here to learn more: https://wrar.ca/hpi/

Tips for Saving for Your First Home

 

When it comes to buying your first home, a big part of that decision should be based on your current financial position and the impact a home loan will have on your finances and lifestyle. For many first-time homebuyers, saving what is required for a down payment can seem overwhelming. However, sometimes saving for a down payment is as simple as managing your budget differently.

Start with a goal
One of the best ways to save is to have a goal. It will keep you motivated and give you something to work towards. For example, you may choose to save a 10% deposit plus expenses (usually 5%) for your first home. But the more you can save, the better off you’ll be. Find out how much you need to put aside in order to reach your savings goal.

Create a budget
Write down how much money you bring home each month; write down the payment amounts for each of your monthly bills; subtract your expenses from your income to determine how much extra money you have each month.

Develop a culture of saving
Your first priority should be developing a culture of saving. This not only helps you in budgeting and planning for the future but also satisfies banks and other lending institutions that you have a clear commitment to save.

When you go shopping, ask yourself if you really need the item you are thinking of buying. If you don't need it, don't buy it. Put the money into your savings account instead. Remember that small amounts of money can add up to large sums over time.

Start an automatic saving plan
Make saving automatic by setting up an automatic savings plan at your bank to regularly move a specific amount of money directly from your chequing account to a savings account. You’ll be surprised at how much you can save and how quickly the “pay yourself first” approach adds up.
  
Borrow from your RRSPs
If you qualify as a first-time homebuyer, you may be eligible for the government's Home Buyers' Plan (HBP). This allows you and your spouse or partner to withdraw up to $25,000 each from your Registered Retirement Saving Plans (RRSPs) to add to your down payment or to cover purchase-related costs.

Best of all, you don't have to pay income tax on the funds, as long as you repay the total amount to your RRSP over the next 15 years. The repayment period starts the second year following the year you made your withdrawals. If the full $25,000 is withdrawn, the minimum annual repayment would be $1,666.

Take a holiday from tax
If you open a new Tax-Free Savings Account (TFSA), you won’t pay any tax on earnings, which will help you compound your savings. You can contribute up to $5,000 a year to a TFSA, and save for anything you like, tax-free.
 
Review your mortgage options
Once you decide to purchase a property, the next choice is the type of loan to suit your budget. The two most common types of loans are the variable interest rate loan and the fixed interest rate loan. 
 
You can now choose to pay back your mortgage over 25 or 30 years, instead of the traditional 20-year amortization period. This means you will pay more interest over the long term, but you can reduce monthly payments to get into your starter home. You can always change this later, once your income rises and you can pay your mortgage down faster.
 
Get into a starter house
Try to be as flexible as possible when choosing your first home. Unless you’re status-conscious, your first home doesn’t necessarily have to be your dream home. You could settle for a starter home, which you can afford with a small down payment and easy mortgage installments. There are plenty of lower-priced houses out there in need of repair, with some "Do-It-Yourself" projects where you can add more value to the house. Be careful not to buy a place where the cost of repairs will eat up any profits you might make when you sell.

In just a few years you will build enough equity in your starter home to make it easier for you to sell and move into your dream home.

Buying your first home is an exciting process. After all, your home could be the largest asset you’ll ever own. Being able to finance most of its cost will take a load off your back in the future.

Colour Psychology and Colour Selection for Your Home

 

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 really 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.

Grey, blue, red, burgundy and cranberry create 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 some 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 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.

Are condos family-friendly?

 When looking to buy a new home for their families, most people don’t automatically think purchasing a condominium is a viable option for them.  Part of the reason for this thinking is the widely held misconception that a condo lifestyle is primarily for young couples, seniors, and singles.  It is a North American myth that families need big houses to thrive and that children need a lot of space to develop well. None of this is supported by research evidence.

Paradoxically, detached houses have become bigger and bigger at a time when they have become emptier and emptier. Families have fewer children and, in a majority of Canadian families, both parents work and during the day most children are in school.

Families that live in large houses actually have less time together because each family member spends most time alone in his or her room. Nowadays, kids have a cell phone, television, computer, Internet, and a game system in their own bedrooms—and this is where they spend most of their time. In large houses, some parents now have to phone or text their children to get them to come down to eat.

Many families may look at high-rise complexes and multi-units and think that they are not suited for family lifestyles. The truth is that condominiums are a feasible option for anyone who wants to own property. In fact many condos may provide more, not fewer, opportunities for children, including:

Sociability. Children living in a condo, especially in a high rise, meet people on a daily basis in corridors, elevators, lobby, and parking. They can learn to interact with others, how to be polite or considerate. They may become less shy and more sociable.

Diversity. Condos generally have a diverse population, especially in large cities, so that children are more likely to meet people from all ages and various backgrounds.

Peers. There are several other children around in the same building. This situation can help them make new friends.

Physical Activity. Many condos have a pool so that children can have fun while exercising. As well, many condos are located near a playground or green space.

Living in a condo may also offer many advantages for parents with small children, such as:

Easier Supervision. It may be easier to supervise children’s social activities in a condo because it is a fairly self-contained vertical neighbourhood or a townhouse area that is quite compact. It’s easier for parents to keep track of their children’s whereabouts.

Sociability. Mothers at home with small children nearly always meet other mothers in the same situation. In some condos, enterprising mothers exchange services and babysitting, arrange meetings or go to a nearby park together.

Car Pooling. Carpooling for schools can more easily be arranged once parents know each other.

Similarly, condos are ideal when a mature couple or person wants to help aging parents where adult children may buy a suite for their parents in their building, or in an adjacent building.

A condo home is like a home anywhere else: location counts. Parents or would-be parents should look into the surrounding neighbourhood just as people do when they buy a detached home. Some areas are better than others and the same can be said about schools. It is recommended that you visit the neighbourhood school to make sure that your children can attend it. It's not always the case in some areas that have seen a lot of recent development.

Condo living does not mean that parental supervision is not necessary. For instance, small children should never be left alone on a balcony or terrace on floors above ground level. They could climb and fall. Neither should children be left alone in elevators. Unless a building has cameras in the elevators, children below the age of 14 should probably always be accompanied by another person. Underground parking areas are not a safe place for a child alone.

In other words, parents have to exercise the same caution and vigilance over their children that they would in other living environments. They only need to adapt their vigilance to the type of condo they live in.

We are seeing a great deal more in the way of multi-family developments in both established and newer communities that offer close proximity to schools, libraries, pools and arenas, amenities that are obviously priorities for young families.

Home builders are also taking into consideration some of the more obvious requirements like more bathrooms, and bedrooms, and have grown more cognisant of the little things that families appreciate, like sound attenuation, extra phone jacks and cable outlets. With many of those important details now being looked after by builders and developers, families don’t have to worry about it and can instead focus on what type of condominium development would best work for them.  Most tend to lean towards a townhouse style, with many units now offering sizes and plans similar to single-family homes.

Identity Theft - how to protect yourself

Identity theft is a crime. It occurs when someone uses your personal information (which can include your name, social insurance number, or any account number) without your knowledge or consent to commit unlawful activities such as fraud or theft.

The consequences of identity theft can be staggering. Victims spend extensive time closing bad accounts and fixing credit records. Clearing your name could be an expensive and lengthy process. You could be denied loans and jobs—and, though unlikely, you could even be mistakenly arrested as a result of crimes committed in your name.

How can an identity thief get your personal information?

Identity thieves can get your personal information by:

• Removing mail from your mailbox or fraudulently redirecting your mail.
• Stealing personal and private information from wallets, purses, mail, your home, vehicle, computer and websites you've visited or e-mails you've sent.
• Retrieving personal information in your garbage or recycling bin by "dumpster diving".
• Posing as a creditor, landlord or employer to get a copy of your credit report or access to your personal information from other confidential sources.
• Tampering with automated banking machines (ABMs) and point of sale terminals, enabling thieves to read your debit or credit card number and Personal Identification Number (PIN).
• Searching public sources, such as newspapers (obituaries), telephone books, and records open to the public (professional certifications).
• Buying the information from a dishonest employee working where personal and/or financial information is stored.

How do you know if your identity has been stolen?
Some of the signs that your identity might have been stolen:

• Bills and statements don't arrive when they are supposed to—they may have been stolen from the mailbox or someone has changed the mailing address.
• You receive calls from collection agencies or creditors for an account you don't have or that is up to date. Someone may have opened a new account in your name, or added charges to an account without your knowledge or permission.
• Financial account statements show withdrawals or transfers you didn't make.
• A creditor calls to say you've been approved or denied credit that you haven't applied for. Or, you get credit card statements for accounts you don't have.
• You apply for credit and are turned down, for reasons that do not match your understanding of your financial position.

How can you protect yourself from identity theft?

Think about taking care of your identity on a regular basis just like you take care of your health. You need to make it harder for thieves to obtain or use your personal information. Here are a few suggestions:

• Sign all credit cards when you receive them and never lend them to anyone. Cancel and destroy credit cards you do not use and password protect your back account, credit card and other online accounts. Never keep a written record of your PIN numbers in your purse or wallet.
• Carry only the identification information and credit cards that you actually need. Do not carry your social insurance card; leave it in a secure place. This applies also to your passport unless you need it for traveling out of country.
• Pay attention to your billing cycles and follow up with your creditors and utility companies if your bills do not arrive on time.
  • Carefully check each of your monthly credit c
• ard statements. Immediately report lost or stolen credit cards and any discrepancies in your monthly statements to the issuing credit card company.
• Shred or destroy paperwork you no longer need, such as bank machine receipts, receipts from electronic and credit card purchases, utility bills, and any document that contains personal and/or financial information.
• Secure personal information in your home or office so that it is not readily accessible to others, who may have access to the premises.
• Do not give personal information out over the phone, through the mail, or over the Internet unless you are the one who initiated the contact and know the person or organization with whom you are dealing.
• Order a copy of your credit report from the major credit reporting agencies at least once every year. Check with the credit bureaus to see whether there is a charge for this service. Make sure your credit report is accurate and includes only those activities that you have authorized.

What should you do if you’re a victim of identity theft?

If you are a victim of identity theft, you should take three immediate steps:

1. Contact your bank or credit card company if you have had your cheques or credit cards stolen or wrongfully obtained.
2. Report the matter to your local police even if the crime may be investigated by a law enforcement agency from a different jurisdiction.  In addition, a creditor may want to see a copy of a police report regarding the fraudulent transaction prior to correcting your credit account or credit report.
3. Report your identity theft case immediately to the appropriate government and private-sector organizations. Keep copies of correspondence and documents related to the theft.