Sizzling hot summer sets new home sales records in K-W in August

 KITCHENER-WATERLOO, ON (September 3, 2020) ––

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There were 686 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in August, the most ever recorded for the month. August’s home sales represented an increase of 48 per cent compared to the same month last year, and a decrease of 8 per cent compared to the previous month. The previous ten-year average number of residential sales for August is 470.

 

“Waterloo Region has had an extremely hot market all summer,” said Colleen Koehler, President of KWAR. ”Following a spring market where most people were observing physical distancing guidelines, sales in August continued to be very active with demand continuing to outstrip supply forcing buyers to act quickly.”

 

Total residential sales in August included 433 detached homes (up 61.5 per cent from August 2019), and 79 condominium apartments (up 38.5 per cent). Sales also included 138 townhouses (up 40 per cent) and 39 semi-detached homes (no change).

 

The average sale price of all residential properties sold in August increased 21 per cent to $634,409 compared to the same month last year, while detached homes sold for an average price of $734,427 an increase of 18.9 per cent. During this same period, the average sale price for an apartment-style condominium was $386,972 for an increase of 16 per cent. Townhomes and semis sold for an average of $495,932 (up 18.3 per cent) and $535,330 (up 21.1 per cent) respectively.

 

The median price of all residential properties sold in August increased 20.8 per cent to $597,955 and the median price of a detached home during the same period increased 17.4 per cent to $675,000.

 

“This summer, local home sales rebounded from the COVID-19 slow down we had in the spring,” said Koehler. “While not as heated as July, August sales were another month for the record books, as home buyers returned to the market with renewed intensity.”

 

There were 833 new listings added to the MLS® System in KW and area last month, an increase of 43.8 per cent compared to August of last year, and 26.4 per cent more than the previous ten-year average for August.

 

The number of Months Supply (also known as absorption rate) continues to be very low at just 1 month for the month of August. The previous ten-year average supply of homes for August was 3.3 months, and in the past 5 years, the average supply for August was 2.2 months.

 

The average days to sell in August was 16 days, compared to 26 days in August 2019.

 

Koehler notes real estate was deemed an essential service from the beginning of the lockdown and REALTORS® have been taking all the necessary precautions to ensure transactions are done safely. KWAR’s president advises consumers to talk to their Realtor® about what measures they will be taking to protect your health and safety as they help you on your real estate journey.

 

Be aware of the "hidden" costs of home ownership

 

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Anyone who owns a home knows that there are many additional costs associated with owning a home. Many first-time homeowners base their decision to buy a home on their ability to make the monthly mortgage payments. In fact, there are many other costs that go into owning a home than just the mortgage payment.

First-time homeowners are often startled by the hidden costs of owning a home. The traditional housing expenses (principal payments, interest, taxes, and insurance) are just the beginning. Maintenance, repairs, supplemental insurance, home improvements and decorating can cost you thousands of dollars a year—more than you expect.

Additionally, a home purchase triggers a series of additional spending on appliances, furnishings, and remodelling activities that exceed typical spending levels of non-moving owners or renters and can persist for two years after moving.

Let's take a look at the most overlooked items that tend to be a burden to all homeowners:

Move-in Costs

1. Home improvement costs
Your new home may require some repairs or remodeling. One of the great things about being a homeowner is the opportunity to put your personal stamp on a house. It’s easy to go overboard with home improvements, though. Relatively few projects add much lasting value to your home, let alone guarantee that you will recoup your costs.

Homeowners are more inclined to purchase luxury items that renters would not, such as granite countertops, pricey fixtures, alarm systems, and other gadgetry. The cost of these luxury amenities can easily add thousands of dollars to the cost of owning a home.

2. Furnishings costs
You will also want to budget money for additional furnishings. Since your new home is likely to be larger than your apartment, you will probably need more furniture. You might also want window treatments, lighting fixtures, carpet or area rugs, and appliances, all of which can add up to tens of thousands of dollars.

Ongoing Costs

1. Monthly mortgage payment
Probably this is the easiest to understand. If you have selected a fixed-rate mortgage, your lender will tell you exactly how much your monthly payment is going to be.

2. Property taxes
Property taxes can be demanding because even if you've paid off the mortgage, you still have to pay a monthly fee to the town and/or the municipality in which you reside. It can easily total $500 to $1,000 or more a month, particularly in large cities where property values have soared in recent years.

3. Utility bills
The monthly utility bills such as electricity, gas, and others could amount to $400 or more, some current home renters may not be aware of this as most likely it is included with their monthly rent. If you are moving to a condominium, you should also add monthly condominium fees.

4. Maintenance costs
How much your home will cost you in maintenance and repairs depends on several factors: the age of the home, how well it’s been treated by previous owners, the harshness of your climate and how much money you want to get out of your home when you sell it.

You should budget between 1% to 2% of your home’s value for annual maintenance. If you bought a $200,000 home, for example, you should set aside at least $2,000 a year, or around $200 a month. Some years you'll spend less, but others you could spend more. A new roof for your home, for example, can cost $4,000 or more.

Naturally, some homes cost more to maintain than others. Older homes usually need more maintenance than newer homes, even if it has been recently renovated. Also, don't assume that because a home is new, it won't need any maintenance for a while. All homes need to be attended to on a regular basis to keep them from falling into a state of disrepair.

The Bottom Line
Being a homeowner brings with it a great sense of pride and gives you enormous stability and security knowing that you will always have a roof over your head, however, it can cost a lot more than you think. So to avoid any unpleasant surprises, make sure you are aware of these extra costs

Condo vs. Freehold home - which is better for you?

 

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For some people, a condominium lifestyle is the only way to live—no lawn maintenance, access to a pool and tennis court, and extra security features you might not have in a single-family home. Other people simply can’t breathe in a condo because their neighbours are too close for comfort. Consider the pros and cons and your specific needs and desires before deciding on whether to buy a condo or a house.

Because of all of the advantages of homeownership in comparison to renting, many of you will soon be reaching a point where you want to buy a home. However, you may not be sure whether you should actually buy a house or if you should look into buying a condo instead. This is especially true for younger homebuyers who might want the benefits of living in a more communal situation that a condo environment provides.

Should you join the condo club or go for more traditional homeownership?

A condo is probably the right choice for you if:

• You don’t have a lot of money to spend but still want to invest in homeownership.
• You are interested in being part of a small community living in the same complex.
• You are comfortable living in close proximity to your neighbours.
• You are a single individual or a couple that is looking for a small home rather than a large property.
• You don’t mind having certain aspects of your homeownership regulated by a committee (a home owner’s association made up of some of the tenants who own in the condos).
• You live in an urban area where condos are common (such as Toronto or Vancouver).
• You run a busy lifestyle and prefer to enjoy amenities like a pool or a shaded grounds area but aren’t able to maintain such amenities yourself either because of the time that it takes or the cost.

A house is more likely to be a better choice for you if:

• You have (or plan to have) a large family.
• You are a very private person who does not like living close to your neighbours or having your home choices regulated by an association.
• You are investing in homeownership primarily for the purpose of resale of the home in the future (since property values are usually higher than condo values).
• You are seeking to purchase a large home and/or you need outdoor areas for things like large pets.
• You enjoy maintaining your own yard or garden.
• You live in a rural area or in a location where there are not many condos on the market.

Although there are always exceptions, condo purchases are usually best for single individuals who have neither the money to invest in a house nor the time to maintain the upkeep of a house. These tend to be young people who don’t mind apartment-style living in close quarters with their neighbours, who are comfortable having some regulation by the home owner’s association and who enjoy sharing common areas with others. Often, condo buyers are first time home buyers. If, in contrast, you are an older adult who has (or may soon have) a family and would like the freedom and privacy of a home with its own property, then a house is probably the right choice for you.

Regardless of whether you buy a house or a condo, it's important to do your homework and consider the future of the neighbourhood you're buying into. The old saying of "location, location, location" remains true for both. Each is a significant investment, and you need to find a safe and vibrant neighbourhood capable of nurturing your investment into the future

How your credit rating affects your mortgage rate

 

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Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers. 

Your credit file is created when you first borrow money or apply for credit. On a regular basis, companies that lend money or issue credit cards to you — including banks, finance companies, credit unions, retailers — send specific factual information related to the financial transactions they have with you to credit reporting agencies.

When you apply for a new loan, the loan officer will check your credit history first.  Your credit score in most cases influences the amount you can borrow and also your interest rate. Understanding your credit score in a better way enhances your chances to develop a higher score and thus benefit from loans at better terms and conditions.

A credit score is calculated from many different factors: your payment history, your credit card balances, bank accounts, including savings and chequing accounts, and any other form of credit including all outstanding personal loans, mortgage loans, store credit cards, etc. Each credit reporting bureau has its own standards and formulas that they use for the purpose of calculating a consumer’s credit score. The following is a generalized classification of a credit score rating:

Excellent credit rating - No late payments, no collection notices, no bankruptcies or repossessions.

Good credit rating - May contain a late payment within the last two years.

Fair credit rating - More than one late payment, may or may not have a bankruptcy or repossession in the last two to three years.

Poor credit rating - Recent collection attempts, late payments within the last year, bankruptcies, and/or repossessions within the last two to three years.

The reason why a credit score is important is that it will determine your eligibility for a loan. A low credit score may hinder approval, and it will also impact the interest rate you will have to pay for the money that you borrow.

Since individuals with less than perfect credit traditionally present more of a risk of defaulting on a loan, lenders are able to justify charging more interest to those consumers. The extra interest the lender earns on the loan is intended to compensate the lending agency in the event the consumer defaults on the loan. Over the course of a 15 or 30-year mortgage, those extra interest points can add up to an astounding amount of money.

Your credit score is an indication of your financial health. You should do your best to avoid damaging your credit history with late or missing payments, too many outstanding loans, or too many loan requests. Watching your credit score closely especially before you make any major purchases will help you avoid unwanted surprises.

Average Home Sale Prices in Kitchener-Waterloo Set Another Record in July

KITCHENER-WATERLOO, ON (August 6, 2020) ––There were 734 residential homes sold through the Multiple Listing System (MLS® System)  of the Kitchener-Waterloo Association of REALTORS® in July, an increase of 25.7 per cent compared to the same month last year, and well above the previous ten-year average for July of 531. “Competition was high for buyers looking to lock down a house in July,” said Colleen Koehler, President of KWAR.  “The rate of home sales in July resembled the kind of month we would normally see in May, and I chalk up much of that to the pent up demand that built as we moved into Stage 3 of reopening in mid-July.” Total residential sales in July included 464 detached homes (up 39.3 per cent from July 2019), and 65 condominium apartments (up 3.2 per cent). Sales also included 153 townhouses (up 4.8 per cent) and 52 semi-detached homes (up 23.8 per cent).    The average sale price of all residential properties sold in July increased 22.8 per cent to $639,814 compared to the same month last year, while detached homes sold for an average price of $745,149 an increase of 21.4 per cent. During this same period, the average sale price for an apartment-style condominium was $392,770 for an increase of 15.2 per cent. Townhomes and semis sold for an average of $465,756 (up 12.8 per cent) and $522,872 (up 20.4 per cent) respectively. The median price of all residential properties sold in July increased 21.7 per cent to $595,000 and the median price of a detached home during the same period increased 17.4 per cent to $675,000. “Elevated homebuyer activity combined with constrained supply put huge pressure on prices last month,” said Koehler. “Homebuyers remain very confident about owning a home in Waterloo Region, and with mortgage rates still at near-record-low levels I expect we will continue to see strong home buyer demand going into the fall. “ There were 888 new listings added to the MLS® System in KW and area last month, an increase of 4.3 per cent compared to July of last year, and 15.5 per cent more than the previous ten-year average for July.   The total number of homes available for sale in active status at the end of July was 592, a decrease of 32.6 per cent compared to July of last year. The number of Months Supply (also known as absorption rate) continues to be very low at just 1.3 months for the month of July, 27.8 per cent below the same period last year. The previous ten-year average supply of homes for July was 3.1 months, and in the past 5 years, the average supply for July was 2.1 months. The average days to sell in July was 17 days, compared to 22 days in July 2019.   Koehler notes real estate was deemed an essential service from the beginning of the lockdown and REALTORS® have been taking all the necessary precautions to ensure transactions are done safely. KWAR’s president advises consumers to talk to their Realtor® about what measures they will be taking to protect your health and safety as they help you on your real estate journey.   Media Contact: Tania Benninger, Stakeholder Relations, 519-584-1141 Read Online: kwar.ca/july-2020-home-sales ‎ Historical Sales By Property Type   Months Supply of Homes for Sale  Historical Median Sales Price – By Property Type  Historical Average Sales Price – By Property Type  Historical Sales – By Price Range  Average Days on Market KWAR cautions that average sale price information can be useful in establishing long term trends but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. Months Supply is the inventory of homes for sale at the end of a given month, divided by the average monthly closed sales from the last 12 months Those requiring specific information on property values should contact a local REALTOR®. REALTORS® have their fingers on the pulse of the market. They know the questions to ask, the areas to probe and what to look for so that you get a complete picture of the property and community you’re considering.

KITCHENER-WATERLOO ASSOCIATION OF REALTORS® 519-576-1400 accounts@kwar.ca SOCIAL MEDIA

Spice Up Your Bedroom ... With Feng Shui!

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Feng shui is an ancient and wise approach to the way our environment affects us. The way we feel and the way we act is influenced in large part by the environment that surrounds us. Therefore, by learning how to properly organize what surrounds us, we can improve our lives, and this is what feng shui is all about.

Feng Shui literally means “the way of wind and water”. It is a way of manipulating the universal life force known as Chi, so that it flows unobstructed within our bodies, homes and workplaces.

Use these feng shui tips to arrange a safe haven in your bedroom.

1- Remove the TV, computer, exercise equipment, and any other work-related materials. The bedroom is a place for sleeping, relaxing, and sexual healing and should not be cluttered with other items that destroy the good feng shui energy in your bedroom.

2- The bed should be the biggest piece of furniture in the bedroom. It should be easily approachable from both sides to balance the flow of energy. It must have two bedside tables (one on each side), and a solid headboard. Choose the mattress wisely and invest in the one that will promote the best sleep and relaxation.

To allow for a balanced feng shui energy flow under the bed, you need to have your bed at a reasonable height above the floor level. Beds that have built-in storage drawers underneath are considered bad feng shui beds because the energy needs to circulate around your body when you sleep, which is not possible if the space underneath the bed is blocked.

3- In addition to a good headboard, you always want to have a solid wall behind your bed. When you sleep under a window, your personal energy tends to get weaker in time, as it has neither proper support nor protection. You also need to make sure that the bed is not placed in line with the doors.
4- Make sure there are no heavy or sharp items hanging over your bed. Do not hang a ceiling fan, chandelier or chimes above your head as this is also considered bad feng shui.
5- Use soft colours to achieve a good feng shui balance in your bedroom. The best colours for the bedroom are the "skin tones", pale-white to rich chocolate brown tones. Avoid rich water (blue) colours.
6- Soft, dim lights are the best for bedrooms. Use a dimmer switch to adjust the level of light in the bedroom. Candles are the best feng shui bedroom lighting, but be sure it does not emit toxin fumes or pose a risk of fire.
7- Keep all the bedroom doors closed at night. This will allow for the best and most nourishing flow of energy to strengthen your health, as well as the health of your relationship.
8- Do not have mirrors reflecting or behind your bed. Mirrors bring the energy of the feng shui element of water, and a strong feng shui water element in the bedroom attracts the energy of sorrow and can weaken your energy when you sleep. Try to reposition the mirror or cover it with a nice fabric.
9- Open the windows often to keep the air fresh and full of oxygen. You cannot have good feng shui in your bedroom if the air you breathe in is stale and full of pollutants.

10- Plants in the bedroom are not good feng shui unless your bedroom is fairly large and the plants are located far from the bed.
A comfortable bedroom is one that promotes a harmonious flow of nourishing and sensual energy that excites and calms you at the same time. Creating a balanced and comfortable bedroom is one of the most important things you can do in your home.

Why Are Mortgage Brokers a Good Option for Seeking a Mortgage

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Over 30% of Canadians now source their home loans through a mortgage broker. Why? Because it can save time and possibly money.

A mortgage broker act as an intermediary between lenders and customers who are looking to finance their home. One visit to a reputable mortgage broker will make the process much easier and could save you thousands of dollars. They look after you through the entire home loan process by providing information and documentation advice, sourcing suitable home loan choices, and submitting applications.

Brokers have access to information for all types of bank loans. They don’t work for the bank and can give you the most cost-saving deal that they can find in the market. Brokers are expected to be transparent and take care of your best interests.

Here are a few advantages of using a professional mortgage broker:

Access to a wider range of products
A mortgage broker has relationships with several financial institutions that are competing to get your mortgage business. These institutions continuously compete with rate, product and service promotions, hoping to win your business. Working with a mortgage broker will provide you with access to some of the best deals and most innovative mortgage products you can obtain on the mortgage market.

Help you get the best deal possible
Mortgage brokers shop the market for the best mortgage rate for you. They usually have access to so-called "wholesale" mortgage rates, which are significantly lower than the posted rates offered by the banks. In most cases, your mortgage broker has the ability to find the best rate on the market and still place your mortgage with the lender or bank of your choice.

Fewer complications
The many forms and other data that are required for a loan application can be quite complicated.  A seasoned mortgage professional will have years of experience that will help him or her navigate the tricky loan application and avoid complications for you.

Save you time
The most valuable of all commodities, a broker can save you time and has the experience to make sure you get the best package for your individual needs.

Mortgage broker services are free
Mortgage brokers are usually paid for by the lending institution where the mortgage is placed through a so-called "finder's fee". In other words, mortgage broker services are free to you. There are cases, however, where institutions do not pay a finder's fee to the broker, in which case the broker will charge the client directly