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Good afternoon,
 
We hope this email finds you doing well, and that you had a fantastic summer!
 
As we head into the final quarter of 2023, we are excited to reconnect with you and share the latest insights and updates in the dynamic world of real estate.
 
🏠 Housing Market Update
 
On Wednesday, September 6th, the Bank of Canada decided to keep its policy rate at a 22-year high of 5%. This pause in their monetary tightening efforts may provide relief to many mortgage holders. However, it's important to note that other heavily indebted Canadians will still feel the burden of elevated borrowing costs.
 
Since March 2022, Canada's central bank has raised interest rates by a total of 475 basis points (4.75%) through 10 rate hikes. These cumulative changes have and will continue to have a significant impact on borrowers, even with the rate unchanged.
 
It is projected for the remainder of the year; the national average residential sale prices across all home types are expected to remain stable. Recent reports have shown increased inventory and slight declines in home prices. These conditions present favorable opportunities for potential buyers who are looking to take advantage of the current buyer's market, where they now have negotiating power due to excess inventory and a shortage of buyers.
 
📈 August Market Stats Waterloo Region
 
In the month of August, the Waterloo Region Association of REALTORS® (WRAR) reported that 568 homes were sold via the Multiple Listing Service® (MLS®) System. This figure signifies a 14.2% drop compared to the same period in the previous year and a significant decline of 23.5% when contrasted with the average sales volume for the month over the past five years. The subdued home sales in the previous month were in line with expectations, especially in light of the prevailing lending conditions.
 
During the month of August, the average selling price for residential properties in Waterloo Region stood at $761,377. This figure reflects a 1.4% uptick when compared to August 2022 but registers a 4.4% decline in comparison to July 2023.
 
Total residential sales in August included:
 
✔️ 315 detached (↓ 24.1% from August 2022). The average price of a detached home was $884,390. This represents a 3.9% increase from August 2022 and a decrease of 3.9% compared to July 2023.
✔️ 134 townhouses (↑ 12.6% from August 2022). The average sale price for a townhouse was $659,704. This represents an 8.0% increase from August 2022 and a decrease of 1.7% compared to July 2023.
✔️ 74 condominium units (↑ 10.4% from August 2022). The average sale price for an apartment-style condominium was $485,205. This represents an increase of 4.1% from August 2022 and a decrease of 2.3% compared to July 2023.
✔️ 44 semi-detached homes (↓ 27.9% from August 2022). The average sale price for a semi was $669,044. This represents an increase of 2.0% compared to August 2022 and a decrease of 0.3% compared to July 2023.
✔️ Inventory levels were up 7.6% in August, this was mainly due to the Townhouse/Condo segment, where inventory increased by 35.3%. The property type with the most supply in the market is the condo segment with 3.3 months’ supply, compared to 1.8 months’ supply in the detached home category.
✔️ Right now, buyers may find it easier to get into a condominium, which can be a great choice for both first time buyers, and anyone looking for a lifestyle change.
✔️ There were 1,025 new listings added to the MLS® System in Waterloo Region last month, an increase of 9.7% compared to August of last year and a 11.7% increase compared to the previous 10-year average for August.
✔️ The average number of days to sell in August was 19, compared to 23 days in August 2022. The previous 5-year average is 21 days.
 
If you have questions about our current real estate market, or are considering a move this season or planning for 2024, contact us today. We’d love to hear from you. 
 
📲 519-841-6511 | 519-500-2805
 
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Imagine you’re selling your home and an offer from a buyer comes in. You’re excited. Your home might soon be sold!
 
What happens next?
 
Typically, we will review the offer together. There will likely be several things about the offer that need to be carefully considered. The most common are:
  • The offer price.
  • Evidence the buyer is financially able to purchase the property.
  • Conditions on the offer, if any.
If the offer price is far less than you anticipated, there might be an opportunity to counter-offer at a higher price. This is part of the art of negotiation, which is an important step in selling your home successfully.
 
The buyer’s ability to afford your property is also important. Ideally, you’ll want to see a Pre-Arranged Mortgage Certificate from the buyer’s lender, or some other evidence that there won’t be any financial problems closing the transaction. The amount of the deposit is also key.
 
Finally, you’ll want to look at conditions. The most popular condition requires that your property pass a home inspection, but there may be others. Obviously, an offer with no conditions is ideal.
 
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Say you’ve found a house for sale in an area that’s unfamiliar to you. How do you figure out if it’s going to be the ideal neighbourhood?
 
The first step is to take a walk. Stroll the neighbourhood and explore. If you get the chance, chat with homeowners and get their opinions of the area. Ask what they love about it. Also ask what they don’t like.
 
Next, determine how the neighbourhood is going to fit with your lifestyle. You’ll want to consider things like commuting routes, local amenities, schools, parks, shopping, etc. Google Maps is a great tool for this. Just turn on the satellite view and get a bird’s eye view of the area and its features.
 
Finally, get the latest data on neighbourhood characteristics such as noise, demographics, crime rates, and more. You’ll be surprised by how much data is available, and the valuable insights you can gain about what it’s going to be like to live there.
 
If the neighbourhood turns out to be a good fit, consider making an offer on that house!
 
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At some point, every home needs to be upgraded to become more functional for the family members who live there – or for resale. However, a major renovation can be frustrating, unless you’re working with a reliable, knowledgeable general contractor. Here are some suggestions to help make your project go smoothly:
 
1. First, do your homework in advance. Identify needs and wants, such as design features and style, with an open mind about costs, timing and resale value.
 
2. Ask reliable sources for recommendations, but don’t make commitments without meeting a number of contractors. Ask about adherence to budget and timing as well as advice on expectations. Ensure each contractor is registered in good standing with your municipality, and can adhere to building codes, secure permits and provide liability protection.
 
3. Interview at least three qualified contractors. Find out about their choices for architectural drawings or plans, subcontractors, suppliers and materials. Confirm the product and labour warranties they provide. Once satisfied, request that these and other details be included in a quotation with costs, completion dates, payment schedules for workers and materials, plus allowances for changes.
 
4. Meet on-site regularly, keep a journal and get receipts for purchases. Don’t pay cash, or hand over your credit card. If necessary, ask your bank to issue a new card with strict limitations. 
 

 
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