Kitchener Market Snapshot January 2020

Fewer Home Sales in January as the Number of Homes for Sale Continues to Elude Buyers in Kitchener- Waterloo

“For the third consecutive month sales were down in January,” says Colleen Koehler, President of KWAR.  “Slower January sales are a result of fewer homes being put up for sale. This is causing further price acceleration as we have enough willing and able home buyers contending for those few homes that are available.”

Total residential sales in January included 153 detached homes (down 19 per cent), and 39 condominium units (up 18.2 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 21 semi-detached homes (on par) and 68 freehold townhouses (up 7.9 per cent).

The average sale price of all residential properties sold in January increased 15.7 per cent to $561,029 compared to the same month last year, while detached homes sold for an average price of $670,944 an increase of 18.8 per cent. During this same period, the average sale price for an apartment-style condominium was 382,636 for an increase of 26.1 per cent. Townhomes and semis sold for an average of $439,765 (up 20.3 per cent) and $484,190 (up 18.7 per cent) respectively.

The median price of all residential properties sold in January increased 17.3 per cent to $536,000 and the median price of a detached home during the same period increased 22.6 per cent to $650,000.

“Consumers can’t buy what’s not there. The available number of homes for sale, or lack thereof, continued to evade home buyers in January,” says Koehler. “There is no doubt we would be reporting more sales if we had the inventory to match the demand.”

Koehler notes Kitchener-Waterloo and area continues to be an exceptionally attractive place to buy a home and a creditworthy buyer can negotiate an attractive interest rate with their mortgage lender.

REALTORS® listed 464 residential properties in KW and area last month, a drop of 21.1 per cent compared to January of 2019, and a decrease of 35.4 per cent in comparison 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 392, a decrease of 38.7 per cent compared to January of last year, and 63.7 per cent below the previous ten-year average of 1,080 listings for January. The number of Months Supply (also known as absorption rate) in January was just 0.8 months, 38.5 per cent below the same period last year. The previous ten-year average supply of homes for January was 2.32 months, however, in the past 5 years the average supply for January was 1.96 months.

The average days to sell in January was 22 days, compared to 27 days in January 2019.

Historical Sales By Property Type  

Months Supply of Homes for Sale 

Historical Average Sales Price – By Property Type 

Historical Sales – By Price Range 

Average Days on Market

Kitchener Market Snapshot for 2019

2019 A STEADFAST YEAR FOR HOME SALES IN KW

Sales Dip in December, While Prices Continue to Escalate 

KITCHENER-WATERLOO, ON (Jan 6, 2020) ––There were 5,925 residential homes sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in 2019, an increase of 1.6 per cent compared to 2018. Contrasted to past years, 2019’s annual sales were 2.3 per cent below the previous 5-year average, and 3 per cent above the previous 10-year average.

On a monthly basis, sales dipped 9 percent compared to last year, with 244 home sales in the month of December.

“Overall, it was a steadfast pace of home sales in 2019,” says Colleen Koehler, President of KWAR.  “When annual home sales in Kitchener-Waterloo hit near 6000 transactions, I consider it to be a strong real estate market.”

Total residential sales in 2019 included 3,590 detached (up 5.9 per cent), and 648 condominium units (down 7.8 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 421 semi-detached homes (down 0.7 per cent) and 1,266 freehold townhouses (down 3.7 per cent).

The average sale price of all residential properties sold in 2019 increased 9.3 per cent to $527,718 compared to 2018. Detached homes sold for an average price of $614,743 an increase of 7.1 per cent compared to 2018. During this same period, the average sale price for an apartment style condominium was 332,409 for an increase of 9.6 per cent. Townhomes and semis sold for an average of $409,979 (up 10 per cent) and $439,844 (up 11 per cent) respectively.

The median price of all residential properties sold last year increased 10.1 per cent to $490,000 and the median price of a detached home during the same period increased 8.6 per cent to $570,000.

“In 2019, the lack of supply continued to be a hurdle for anyone who was trying to buy their first home, move-up from their current residence, or downsize. This ongoing state of the market caused further escalation of home prices in 2019. With interest rates expected to stay low in the year ahead combined with Waterloo region’s ongoing growth, I expect 2020 will see more price gains alongside a steady increase in sales,” says Koehler.

The number of months of inventory averaged 1.5 throughout the year, hitting its highest point in May when there was 2.1 months of supply, and ending the year at 0.7 (3-4 months supply is historically normal for Waterloo region). The average days to sell in 2019 was 23 days, compared to 24 days in 2018 and a previous 10-year average of 38 days.

Dollar volume of all residential real estate sold last year increased 10.9 per cent to $3.1 Billion compared with 2018.

While the majority of residential MLS® System activity is properties for sale, REALTORS® are increasingly representing landlords and tenants. Last year 733 residential leases occurred through KWAR’s MLS® System, which is on par with last year and, 2.5 times as many as just four years ago.

Historical Sales by Property Type

Months Supply of Homes for Sale

Historical Median Sales Price – By Property Type

Average Sales Price – By Property Type

Historical Sales – By Price Range

Average Days on Market

Screen doors let the breeze in and keep the bugs out. They open your home to the sounds and scents of summer, and help cool your house without wasting energy on air conditioning. Want to let in a little more summer this year? Here’s what you need to know about picking the perfect door.

Screen doors have come a long way from the hard-to-open metal models and flapping wood doors of your childhood. Available in metal, vinyl or wood, many feature smooth hydraulic or pneumatic closers and springs or chain stops that keep them from slamming shut or swinging open. Designed for both practicality and curb appeal, doors are available in a wide variety of colours, styles and finishes. Your choices include:

1. Basic vinyl or aluminum. Durable and affordable, these doors come in a surprising variety of attractive styles; you’ll find everything from traditional designs to art deco-inspired geometrics.
2. Storm/screen door combo. Traditionally, people replace the screen door with a storm door in the winter. A combination door makes the “swap” easier; simply remove or slide the glass down in summer and replace it with a screen.
3. Wood. From rustic doors featuring carved animals to pretty “granny doors,” wood can really add to the look of your home. However, winter cold and damp can be hard on them, so manufacturers suggest that you take them down when it gets cold to prevent warping.
4. Sliding. Inexpensive and easy to maintain, sliding screen doors that go with patio doors make it easy to open up your home to a fresh breeze.
5. Retractable screens. If you don’t like the look of a screen door, these are a great option, and are available at your local home improvement store. Screens pull out from the sides and lock shut with a magnetic catch. Handy homeowners will be able to install them with little effort.
With the right screen door for your home, comfort and curb appeal are a breeze!

Tips for installation
Thinking about installing your screen door yourself? Manufacturers include installation instructions that only require hand tools, but most DIY resources suggest an intermediate level of “handiness.” If that doesn’t sound like you, consider using an experienced carpenter or the store’s installation service.

Condo Cool
You don’t have to live in a house to kick back and enjoy the breeze. Welcome summer into your space by installing a screen door to your balcony. It’s a great way to make your indoor and outdoor spaces feel unified and to make your condo feel more spacious.

Looking for that cottage life?

Do you have a dream of owning a place outside of the city where you can escape, kick back and relax? If so, you’re not alone. As demand continues to increase and average prices continue to rise, now more than ever you will need to be patient, establish a list of ‘musts’ and work with a Realtor who understands the recreational market, if you want your dreams to come true.

To begin your search, target potential areas and consider a road-trip to visit your most coveted spots. Once you find your ideal location, narrow your search by establishing a list of priorities. Do you plan to use your recreational property for seasonal versus year-round use? Do you wish to build a new cottage or buy an existing one? What are your hobbies? Is proximity to hospitals, public transit or schools important? If you are near water, lakes can vary tremendously in terms of allowances for boating, fishing and swimming. In the winter, do you want to use both cross-country and downhill skiing facilities?

With your priorities established, you will also be in a strong position to act fast if you need to. Popular sites are in demand.

Buying a recreational property can be considerably more complex than a standard home purchase and it generally takes longer. There is considerably more time and travel involved. The effort, according to a growing number of Canadians, is more than worth it.

Before you begin your search, give me a call. I can get you started down the right path toward your home away from home. If I cannot assist you directly in your purchase transaction, I can refer you to a quality Royal LePage Realtor in your desired area from our network of over 13,000 real estate professionals from coast to coast.

For the most recent Royal LePage Recreational Property Report, visit www.royallepage.ca and click Press Releases.,Demystifying Mortgages – How Much Can You Borrow?

A home is typically the largest purchase you will make in your lifetime, and for most Canadians this means obtaining a mortgage. The amount of your mortgage will determine the size and location of your new home – not to mention the size of your payments. So how do lending institutions decide how large your mortgage loan can be?

Call RIZ today to purchase your home away from home! 519-716-7253 (direct)

What goes under foot is seldom an easy decision. Colour, surface texture, room usage and price all come into play. Today, greener options abound, adding to the myriad of choices already available.

Increasing interest in incorporating renewable resources into the home has resulted in many beautiful eco-friendly flooring options.

For homeowners looking on the greener side, it’s worth a look at the many sustainable products available today:

• Give a tree another lease on life with salvaged wood flooring. A rustic look can be created with reclaimed wood. Buying reclaimed lumber continues to get easier, and in some instances, less expensive relative to the cost of new hardwoods.
• Bamboo is a good option for rooms with low humidity. High abundance and a natural look make sustainable bamboo an attractive flooring option. Bamboo grows to maturity in three to five years, about a quarter of the time it takes to grow trees used for hardwood.
• Linoleum flooring has retained its popularity over decades. Unlike vinyl flooring, which is a synthetic product made of chlorinated petrochemicals, linoleum is manufactured from natural compounds including linseed oil, cork dust, tree resins and ground limestone. With natural, renewable elements used in its manufacturing, this eco-friendly flooring option continues to remain a popular option.
• Cork flooring has many eco-friendly attributes. Like bamboo, cork is quickly renewable. It is harvested from the bark of the cork oak tree and grows back every three years. Cork has anti-microbial properties to reduce allergens, is fire retardant and provides a comfortable feel under foot. Cork flooring can be finished in a variety of paints and stains to complement any room setting.
• Polyester (P.E.T.) Berber carpet is a sustainable option made of recycled plastic bottles. Anytime we can reuse these materials, we reduce the amount of new materials being manufactured and we reduce non-biodegradable materials in our landfills. Polyester Berber is spill resistant and comes in a variety of aesthetically – pleasing colours and patterns.

Whatever your home’s style or design, an eco-friendly flooring option exists to complement the desired look and existing patterns.

Helpful hints in making a small room appear bigger!

Small rooms are the bane of the home decorator. How do you achieve a pleasing look that doesn’t feel cramped and claustrophobic? Short of building an addition or knocking down walls, you are limited to a few, but effective, decorating tricks that create the illusion of space.

The strategic use of colour and light is the best way to achieve this. Choose light shades of paint or wallpaper for the walls. Lighter colours reflect light making for a brighter room. Use an even lighter shade of the same colour or white for ceilings and floors. A darker colour on the ceiling will make the ceiling look lower and tends to make the walls look as though they are closing in.

Avoid harshly contrasting colours. In fact, a monochromatic colour scheme that carries throughout the room into fabrics and accessories is very effective. Steer away from too many patterned items. The goal here is to blur perspective.

Anything you can do to bring light into the room will also give the effect of increased space. A corner wall sconce that casts light up onto the wall works well. Try to vary lighting effects for interest. A skylight is a great way to add light to a room, but isn’t always practical or affordable. Mirrors are a great solution for small rooms. Place mirrors directly across from another for maximum impact. A mirror placed across from a window is also effective. Place a lamp in front of a mirror to add more light to your room.

If you have wood or patterned flooring, have it installed so that the lines run diagonally across the room. This makes for longer lines, which give the appearance of a larger space. When furnishing the room, pick objects that are proportioned to the size of the room. For example, opt for a loveseat over a full-sized sofa. Lastly, keep the clutter to a minimum. Avoid using a lot of knick-knacks and keep the room tidy and well organized.

Remaining objective can be a difficult task when viewing an open house. It is easy to fall in love with a home’s appearance, blind to problems that may make it unsuitable. While aesthetics can be an important consideration, it is necessary to look beyond window-dressing.

Aqualified home inspector should be hired before purchasing a home, but there are areas that consumers can examine on their own. This will shorten your list of potential homes and reduce the likelihood that a home inspector will reject it as unsafe or unsuitable. Here are some considerations and common problem areas to look for when touring an open house:

General Upkeep

Much can be surmised from the general state of the home. Is the home clean? Are lawns left uncut? Are the walls chipped and in need of paint? If smaller chores have been ignored it may be an indication of a broader disregard for home maintenance.

Water Leaks

Check ceilings and drywall for stains, bulges and other signs of water damage. Water that works its way inside via a leaky roof or a cracked foundation can rot wood, create mildew and mold, destroy possessions and can be expensive to repair.

Does it Work?

Test lights, faucets, the heater, air conditioning, major appliances (that are to be included with the home) – even flush the toilets to ensure everything is working as it should.

Floors

As you walk across the floors be aware of spongy (soft or springy) sections. Excessive squeaking and uneven, bumpy floors may also be indicative of expensive forthcoming repairs.

Doors & Windows

Check that doors and windows fit snugly in their jambs and operate smoothly. Look for flaked paint and loose caulking. If the wood around windows and doors is not protected from moisture, it can rot away. Feel for drafts in these areas too.

Poor Drainage

On a wet day walk around the yard and look for areas where water collects. This can be an especially bad sign if there are soggy areas near the home’s foundation.

Grout & Caulking

If the grout and caulking around bathroom and kitchen tiles is loose and crumbly, there is a good chance that water is finding its way into the wall or under the floor.

Structural

Although this is definitely an area where you want the services of a qualified home inspector, you can get an idea about possible structural problems if you see deep cracks in the foundations or loose mortar and bricks.

Miscellaneous Concerns

Naturally, one the most important factors will be determining if the house suits your family’s needs. If you do not want to replace all of your furniture, make sure it will fit into the rooms of the new house. This is difficult to do by eye, so be sure to bring a measuring tape. Also, take note of storage space. If you are moving from a home with large closets and a shed, make sure your new house is able to store an equivalent amount of belongings.

Are you ready?

When you have decided that the time is right to sell, the first step in preparing for the sale of a home is finding out its worth. Contact me for a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties.

Working to ensure your home is in the best condition possible for showing to prospective buyers will position you to receive top dollar. This includes repairing or improving any trouble spots that could deter a buyer, such as squeaky doors, a leaky roof, dirty carpet and walls, and broken windows.

The first impression that potential buyers form of your property as they drive or walk up should not be underestimated. The “curb appeal” of your home is extremely important. You can create a positive first impression by making sure the lawn is pristine – the grass cut, debris removed, garden beds free of weeds, and hedges trimmed.

However, the trick is not to overspend on pre-sale repairs and fix-ups. This is especially important if there are few homes on the market but many buyers competing for them. On the other hand, making such repairs may be the key to selling your home in a down market.

Don’t Put it on HOLD…..Call RIZ to get it SOLD!!!

… For Buyers and Your Neighbours

The summer months are the perfect time to freshen up the exterior of your home. Whether it’s for your pleasure or to impress potential buyers, you’ll boost your home’s curb appeal with these good old-fashioned cleaning tips:

– Edge the gardens, clean out debris
– Pull the weeds and rake the leaves
– Prune the plants and wooly shrubs
– Plant some urns by the entrance and flowers to the beds
– Tidy the garage of winter trappings
– Dispose of rusty broken garden décor
– Put out a fresh welcome mat and oil the front door
– Paint the windowsills, mailbox, and anything else that is looking tired
– Place clear light bulbs in exterior fixtures, and ensure burned out bulbs are replaced
– Reseal the driveway
– Hide the garbage cans
– Sweep the step
– Fix the saggy gutters

Who says cleaning has to hurt? Get the kids involved! Borrow or buy a power washer and have fun cleaning siding, windows, sills, railings, decking and patio furniture.

Riz Jadavji is a leading real estate sales representative in BlackBerry’s hometown of Kitchener-Waterloo. He works hard and generates results — Riz is one of a few select agents to achieve top three percent sales status in Royal LePage Canada in consecutive years.

Success in real estate means working long hours and being constantly on-the-move, from open houses to deal closings. Staying organized, staying in-touch and staying on top of administrative tasks wherever he finds himself is a big part of why Riz is a success.

Not surprisingly, Riz is also a long-time BlackBerry user and recently moved from the BlackBerry Z30 to the BlackBerry Passport. We caught up with Riz to find out what he thinks of his Passport.

(Check out our other interviews with satisfied BlackBerry Passport users, including celebrity chef Tyler Florence, this senior hospital executive, manufacturing executive, non-profit founder, software engineer, tech journalist, legal administrator, pharmaceutical CEO, software manager, insurance salesman, corporate IT manager and these workers from multiple industries.)

How do you use the BlackBerry Passport in your daily work?

The Blackberry Passport is my personal pocket assistant each day. While I value my efficient Executive Assistant Jessica, I also rely heavily on my Passport to keep me well organized with my hectic schedule. It’s the perfect tool for multi-tasking and helps keep me organized, yet productive.

Juggling multiple messaging, email and social media platforms can be challenging — do you find the BlackBerry Hub to be an asset for you?

The HUB — I must say — is amazing to say the least. I really appreciate the ease of functionality. I can see everything that I want to see and still have the ability to filter out what gets in the way of a busy schedule. It’s ingenious to have everything in one spot; it eliminates my having to go in and out of many apps to find out what is happening throughout the day.

How do you feel about the BlackBerry Passport’s 30-hour battery life?

In my field, I find a lot of my day is involves reviewing PDF files of offers, various attachments while dealing with numerous banks and lengthy phone conversations with clients. I find while nearing the end of day, I see others pulling out their charging cords while I can still enjoy reviewing YouTube videos and catching up on highlights of the day on various news sites. Despite all that use, my battery keeps on ticking.

Was the keyboard a factor in getting the BlackBerry Passport?

I was primarily hooked on the Blackberry keyboard, and then I got a BlackBerry Z30. I was pleasantly surprised that I could actually type quite well using the onscreen keyboard. Now, with the Blackberry Passport, I am back into my comfort zone of typing on a physical keyboard again, but in this case the larger keys make typing a breeze.

What apps do you find yourself using primarily?

I am a fanatic when it comes to using the social media platforms; that along with my need for multiple emails means that I spend a lot of my time in the BlackBerry Hub. I am also constantly using Blackberry Remember, the Calendar, Bloomberg, Documents to Go and Evernote.

Is there anything you can do with the Passport that you weren’t able to on other devices?

With the Passport, I am able to stay connected across all communications platforms, while using a number of services and apps throughout the day to tend to my business needs. Many other devices cater to just entertainment while offering the use of a phone tool, but the Blackberry Passport provides me the comfort of knowing I can rely on it as one of my tools of the trade in order to maximize my output. I feel very confident knowing that, while on the road most of the day, I can turn to the Passport for all my needs: social, business or entertainment.

How would you rate the BlackBerry Passport out of 10?

I’ve been a faithful BlackBerry user since its inception, so maybe I’m a little biased, but I have to give it a perfect 10 out of 10!

What kind of reactions do you get from the BlackBerry Passport?

The initial reaction when I pull the phone out usually starts with “Is that the new Blackberry Passport?” Although I have had my unit since it was launched, it is amazing how many people still consider it NEW. I truly believe that, based on the look and feel of this phone, it’s perceived as an executive business model and gets noticed by my peers.

Has the BlackBerry Passport improved your productivity? If so — how?

The BlackBerry Passport has enabled me to accomplish greater results with increased speed and has allowed me to develop a more efficient process to incorporate within my business model. I’m able to get a lot of work done in a short amount of time without opening up a laptop.

To put it another way: my business tag line is “Don’t Put it on HOLD…Call RIZ to get it SOLD! ™” Well, without my BlackBerry, I would have to put my business on HOLD! It truly helps me get things done.

Originally posted on Inside BlackBerry

http://blogs.blackberry.com/2015/04/busy-real-estate-agents-blackberry-is-a-passport-to-closed-deals/