Waterloo Region Housing Market Sees Modest Sales Uptick in July Amid Lower Interest Rates and Increased Inventory

 

WATERLOO REGION, ON (August 6, 2024) —In July, a total of 639 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents an increase of 4.6 per cent compared to the same period last year and a decline of 16.6 per cent compared to the average number of homes sold in the previous ten years for the same month.

“In July, we observed a slight increase in home sales year-over-year following a reduction in interest rates, which seems to have provided a modest boost to market activity,” says Christal Moura, spokesperson for the Waterloo Region market area. “While this uptick is encouraging, it is evident that many potential buyers are adopting a wait-and-see approach, anticipating further decreases in interest rates and better buying conditions in the near future.”

Total residential sales in July included 382 detached homes (up 4.1 per cent from July 2023), and 126 townhouses (up 5.0 per cent). Sales also included 82 condominium units (up 9.3 per cent) and 48 semi-detached homes (up 9.1 per cent).

In July, the average sale price for all residential properties in Waterloo Region was $782,716. This represents a 1.6 per cent decrease compared to July 2023 and a 0.9 per cent decrease compared to June 2024.

• The average price of a detached home was $914,469. This represents a 0.6 per cent decrease from July 2023 and an increase of 1.6 per cent compared to June 2024.
• The average sale price for a townhouse was $617,062. This represents a 7.7 per cent decrease from July 2023 and a decrease of 7.1 per cent compared to June 2024.
• The average sale price for an apartment-style condominium was $494,897. This represents a decrease of 0.6 per cent from July 2023 and an increase of 7.1 per cent compared to June 2024.
• The average sale price for a semi was $667,063. This represents a decrease of 0.6 per cent compared to July 2023 and an increase of 2.7 per cent compared to June 2024.

There were 1,391 new listings added to the MLS® System in Waterloo Region last month, an increase of 15.9 per cent compared to July last year and a 27.5 per cent increase compared to the previous ten-year average for July.

The total number of homes available for sale in active status at the end of July was 1,817 an increase of 61.9 per cent compared to July of last year and 38.9 per cent above the previous ten-year average of 1,308 listings for July.

Market-wide inventory levels were up 65.0 per cent, with 3.3 months’ supply for all property types at the end of July. The property type that gained the most inventory was the townhouse segment, which increased by 85.0 percent. That amounts to 5.7 months’ supply for condo apartments, 3.7 months for townhouses, and 2.8 months for detached homes.  The number of months of inventory represents the amount of time it would take to sell off current inventories at the current sales rate.

The average time it took to sell a home in July was 22 days, which is four days longer than the previous month. In July 2023, it took 16 days for a home to sell, and the five-year average is 17 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://wrar.ca/hpi/  

Waterloo Region Housing Market Sees Cooling Trend: Increased Inventory and Lower Prices Provide Opportunities for Buyers

WATERLOO REGION, ON (July 4, 2024) —In June, a total of 674 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 13.7 per cent compared to the same period last year and a decline of 24.8 per cent compared to the average number of homes sold in the previous ten years for the same month.

“The Waterloo Region housing market is cooling, with a year-over-year decrease in home sales in June, while the number of homes for sale is rising, offering more inventory to buyers,” says Christal Moura, Cornerstone spokesperson for the Waterloo Region market area.”

Total residential sales in June included 424 detached (down 9.6 per cent from June 2023), and 136 townhouses (down 8.7 per cent). Sales also included 66 condominium units (down 44.5 per cent) and 47 semi-detached homes (up 14.6 per cent).

In June, the average sale price for all residential properties in Waterloo Region was $790,945. This represents a 5.8 per cent decrease compared to June 2023 and a 3.3 per cent decrease compared to May 2024.

The average price of a detached home was $900,307. This represents a 10.3 per cent decrease from June 2023 and a decrease of 4.6 per cent compared to May 2024.

The average sale price for a townhouse was $663,642. This represents a 0.6 per cent decrease from June 2023 and an increase of 2.0 per cent compared to May 2024.

The average sale price for an apartment-style condominium was $462,145. This represents a decrease of 1.8 per cent from June 2023 and an increase of 0.5 per cent compared to May 2024.

The average sale price for a semi was $649,353. This represents a decrease of 6.7 per cent compared to June 2023 and a decrease of 7.2 per cent compared to May 2024.

Budgeting for Closing Costs When Buying a Home

 

Closing costs come as a surprise for many home buyers. Since closing costs are additional costs over and above the price of a home, you should be aware of these costs and budget at least 2.5% of the purchase price for closing, in addition to the down payment.

Your exact closing costs depend on where you live, how much you are borrowing, and how you are financing your mortgage.  The rules and regulations surrounding the various mortgage fees can be complex and can vary from lender to lender.

Below you will find a brief explanation of these costs. Some of these fees may (or may not) apply to your specific situation. Use this is a guideline and then talk with your lawyer or real estate agent who can provide a more realistic estimate for your situation.

Home inspection fee: A professional inspection is a definite must for buyers purchasing properties older than 5 years. A typical home inspection can cost anywhere from $300-$400, but they are well worth the investment. Typically, a home inspection is not required if you are purchasing a new home.

Legal costs and disbursements: A lawyer or notary will charge a fee for their professional services for work involving drafting the title deed, preparing the mortgage, and conducting various searches. The disbursements, on the other hand, are out-of-pocket expenses incurred, such as registrations, title search, and supplies. These fees usually cost between $600-$800.

Mortgage appraisal fees: Lenders usually require a professional appraisal of the market value of the property to process your loan. This could range from $100-$250. This may be waived depending on how you negotiate the mortgage with your lender.

Land survey fee or title insurance fee: A recent survey of the property is usually required by the lender, and if one is not available, it normally costs anywhere from $600-$900 for a new survey. In lieu of a survey, most lenders today will accept Title Insurance, at a much lower price of approximately $225.

Land Transfer Tax: Most provinces charge a land transfer tax payable by the buyer. This tax, which is based on the purchase price, varies from province to province.

High ratio mortgage insurance: This is required if your down payment is less than 20%.

Fire insurance: All mortgage lenders will require a certificate of fire insurance to be in place from the time you take possession of the home. The cost can vary depending on the property size and extras being insured, as well as the insurance company and the municipality. The cost can vary anywhere from $250-$600 for most properties.

GST/HST is payable for newly constructed homes. Many builders include this cost in the purchase price so that the buyer does not have additional fees at closing. Therefore, on the offer, the purchase price will say "Plus GST" or "GST Included", and it will identify who will receive the new home GST rebate.

When budgeting for the closing cost don't forget to add the moving cost and other expenses required to get your new house ready for living like painting, repair, new furnishings, etc.

The more aware you are of the true costs of purchasing a home you’re interested in buying, the better choices you’ll be able to make about that home. If you decide to buy, you’ll be able to do so with much more confidence.

Why You Should be Getting a Mould Inspection Before Buying a Home

 

Buying a home is likely to be one of the most important purchases you will make in your entire life, so it only makes sense to take every possible step to limit the amount of risk you are exposing yourself to. For an increasing number of home buyers, calling for a professional mold inspection is a prudent way to verify a prospective home's quality before making a buying commitment.

Why mold is a threat
A serious mold infestation in a house has a negative impact on the home's indoor air quality. Although there are mold spores present to some extent in almost all of the air humans breathe, even a relatively minor increase in the density of airborne mold can cause health issues. Mold can cause a host of different respiratory problems, particularly for very young and very old residents and more serious and even fatal consequences are possible.

Mold has become increasingly important to Canadian homeowners in the last few decades because of the growing interest in energy efficiency in the home. More energy-efficient homes are generally more tightly sealed, leading to less air circulation. When combined with other factors that encourage residential mold growth, this low-circulation environment can become ideal for mold.

Beyond its health issues, mold is also a serious strike against a home's value. Buying a home with a pre-existing mold condition can lead you to significantly overpaying for the property. The remediation process required to get rid of the mold can be extremely expensive and even after cleaning the home thoroughly, it may still be difficult to sell.

How professional mold testers work
It is important to understand that there is a distinct difference between a mold inspector and an ordinary home inspector. Although a good inspector who tries to deliver a comprehensive report on the condition of a home before you buy it can spot the most obvious signs of a major mold infestation, rooting out hidden problems and diagnosing the exact nature of your mold issues calls for specialized expertise.

Residential mold testing typically starts with airborne sampling throughout the home, concentrating especially on areas with high humidity like basements. Elevated mold levels in the air may indicate the presence of a hidden infestation that can't be seen. In cases like this, mold inspectors will perform an "invasive" inspection by opening wall cavities and other normally inaccessible spaces.

When mold testing is vital
Mold testing can be extensive, especially if it involves demolition work and repairs. Many home buyers are hesitant to invest in comprehensive testing but going without it can be a serious risk. A serious mold infestation as confirmed by a qualified inspector can significantly impact the value of the home due to the health risks it poses. It can even be difficult to secure the financing you need to buy a home that has a confirmed mold problem.

It is always smart to invest in a professional mold inspection if you have any reason whatsoever to suspect a mold problem. Homes that have gone through significant water damage are prime candidates for inspection.

Fortunately, buyers and sellers can often work together to deal with mold issues in a manner that is safe and satisfactory for all concerned. Motivated sellers sometimes offer to cover the costs of testing and any required remediation work, while in other cases, the costs can be equitably divided between sellers and buyers.

While threatening levels of mold are still relatively rare in Canadian homes, you don't want to invest in a piece of property and then discover that it poses a health risk to your family. A mold inspection can be vital in giving a home a clean bill of health before you buy. This issue is too important to leave up to guesswork. Entrust the matter to a professional mold testing firm and know for certain what is lurking in a house you are thinking of purchasing.

Six Pricing Tricks to Help Sell Your Home

 

When you decide to sell your home, setting your asking price is one of the most important decisions you will ever make. Depending on how a buyer is made aware of your home, price is often the first thing he or she will look at. Many homes are discarded by prospective buyers as not being in the appropriate price range before they even have a chance of a showing.

Your asking price is often your home's "first impression", and if you want to receive the most money you can for your home, it's imperative that you make a good first impression.

Setting the asking price of your property is as much about knowing how buyers think as it is about how much the property is worth.

1. Price it right
In order to set the right price, check out your competition first. A little real-estate research can be handy. Take a look at homes sold in your neighbourhood. Ask yourself: what are they selling for? How long have they been on the market? Study the supply and demand within your neighbourhood to consider whether to price your home above or below the market value.

Pricing your home lower than your competitors can essentially generate more offers, thereby driving the price higher. On the other hand, price it too high and you risk buyers going into “sticker shock”.

2. The missing penny trick
To grab the attention of potential buyers, Take a pricing tip from discount retailers like Wal-Mart. Take, for example, $19.99 vs. $20.00. While it is only a penny difference between the two, the $19.99 price seems like a better deal! Why? Because when people see a price, they make judgements in a fraction of a second whether it is a good or bad deal. And, since we read from left to right, the first number receives the most focus. Therefore, a home listing for $199,999 will generate more attention than $200,000 because people will perceive $199,999 to be a better deal. Retailers have been using this proven strategy for a long time; make it work for you.

3. Raise the reference point
You can raise people’s reference points by asking for a higher price. People use that information in setting their reference price. In addition, you can affect the reference price of buyers by telling them the price of competing properties in the neighbourhood. However, pass along this information only if the comparisons are in your favour.

On the other hand, if you set an implausibly higher price, the impact will be less than if you set a more reasonable price.

4. Send the right message
People associate precise numbers with bargains. If a house should sell for around $300,000, then offering a round number like $295,000 will convey quality and willingness to negotiate, and choosing a higher but precise number like $295,485 would indicate a bargain.

A precise number may also signal that you have given careful consideration to the price and you aren't inclined to negotiate, however, you may want to use this trick with caution.

5. Setting the asking price.
If your home is in a new development and you want to give the impression of prestige, go for a nicely rounded (up) price. But if you're going for a quick sale and you want to give the impression of a bargain, go for a precise number.

6. Make the price cuts easy-to-understand
We perceive easily computable discounts as better than larger discounts. A discount from $395,485 to $385,485 might seem better than from $395,485 to $378,495.

When a home has been on the market too long and very few offers have been made, the logical option is to reduce the asking price. But by how much? The trick here is to reduce the price by a nice, easy-to-calculate number so buyers can easily calculate their savings.

The longer your house sits on the market, the less cash it commands. Use these expert tricks to sell your house fast and maximize your profit.

Monitoring Your Home with a Wi-Fi Webcam

 Have you ever wanted to know what is happening inside or outside your home while you are away? A new digital technology is making this possible and at a low cost.  In just a few minutes, you can remotely view your home or workplace from any location, simply using a Wi-Fi webcam and a broadband internet connection.

What you'll need
You will need a wireless router, Wi-Fi Webcam, and an Ethernet cable to set up your home monitoring webcam. These items are readily available from most electronic shops and cost around $300.

A broadband connection and a wireless router are the basic infrastructure you'll need to set up a webcam. We recommend an 802.11g router for maximum throughput. We used a Wireless-G Broadband Router with SpeedBooster (WRT54GS) from Linksys.

For the webcam, we recommend "X10 AirSight Wireless IP Camera"  available from (http://www.x10.com) The camera includes an Ethernet cable, an AC adapter, and a setup CD. A built-in microphone, which transmits sound across the Net is also part of the package.

Installation
Follow the supplier installation instructions to set up the webcam and install the monitoring software. The process is simple and can be completed in less that 30 minutes for a tech-savvy person (however it may be a bit tricky for an ordinary user). 

The payoff
Once the software is set up and the webcam installation is completed, you can see your camera from anywhere using the web. No matter where you may be in the world, get online from your laptop, work PC, hotel computer, smartphone, tablet, and more. As long as you have Internet access and the password, you can view and control your webcam with ease.  Multiple users (friends, family members, etc.) can also access the camera feed(s) from other locations.

True 24-hour surveillance
Most surveillance webcams are equipped with real Night Vision technology to function 24 hours a day in any lighting condition. In well-lit areas, it provides crisp, full-colour video. In darker conditions, the camera automatically enables Night Vision, adjusting so you can see in incredibly low lighting conditions.

Online video recording and snapshots
The software allows you to capture what you're seeing on your computer hard drive. Simply click the snapshot tab to take still pictures or click the record tab to record video and save it to a designated folder. The snapshots will come up in a new browser window so it's easy to save as a JPEG in the folder of your choice. The recorded video will automatically save as an MPEG in the designated folder.

Security issues
Because the webcam runs through your Wi-Fi network, it is protected by  WEP, WPA, or WPA2 encryption. But remember to activate the Wi-Fi security encryption and protect your network with a good password.

How to Deal with Mortgage Payment Difficulties

When unforeseen financial circumstances impact your ability to make regular mortgage payments, you need to take quick action. With early intervention, cooperation, and a well-executed plan, you can work together with your mortgage professional to find a solution to your financial difficulties.

If you or your spouse has lost employment and no longer makes as much money, and you see meeting your mortgage payment obligations is going to be problematic, the first step is to take a deep breath. Millions of people face the same problem every year. Fortunately, there are ways to avoid default and keep your home, so read on for more information on how to avoid a mortgage default.

1- Get moving on a solution. Your first option is to find a way to make up the back payments and continue fighting to make your payment on time every month. Although not an attractive option, it is an option.

Explore options to decrease expenses and increase income, such as an additional job, selling possessions, and looking to community resources for help. You may have to temporarily cut back on things like dining out, internet, and cable.

If you have a basement or spare room you may consider renting it out. The extra income could be up to 50% of your mortgage payment.

2- Work with your lender. Contact your mortgage lender. Banks do not want to foreclose on properties. The process is long and costly, and in the end, mortgage lenders lose money. Instead, they would rather work alongside borrowers that are slightly behind on payments, and come up with a practical solution.

Consider extending your mortgage term to reduce your monthly payments. The downside is that you will end up paying more in the long term. However, if it means you are able to continue meeting the minimum mortgage payments, it is worth doing.

Set up a repayment plan. If you are unable to pay your mortgage payment for one or more months, the lender may agree to a repayment plan. The mortgage lender adds additional money to each subsequent mortgage payment until the loan is up-to-date.

Your lender may also suggest an interest-only mortgage. This will also reduce your monthly mortgage payments, often quite substantially. However, again the disadvantage is that, in the long term, you will need to find an alternative investment plan to pay off your mortgage capital—which might be a good short-term option.

3. Refinance your mortgage. 
This is perhaps the easiest and most effective method. If you happen to be on your bank’s existing standard rate, the chances are you will be able to find a much better deal.

4. Talk to a Financial Advisor. 
If the situation is becoming overwhelming and you are really in danger of defaulting, you may need to consider speaking to a financial consultant or accountant. This will arm you with expertise and resources with which to approach planning your financial future and make the most of your current circumstances.

5. Resell – Downsize. 
This option is probably the most drastic and only to be undertaken when the others have failed. If you are able to sell your house, you can temporarily rent somewhere cheaper or buy a cheaper house in a different location. The money saved can be used to pay off your mortgage. This option is not easy, due to the costs involved in moving, but it might be worth doing in the long term.

If you can see that things are going to get bad in relation to meeting your mortgage payment obligations, take a deep breath and take action now—it will help in the long run.