Housing Market

[Shawn]

NOVEMBER SALES SHOW BALANCED MARKET IN KITCHENER-WATERLOO
http://www.kwreb.on.ca/november-sale...ener-waterloo/

Kitchener - Waterloo Real Estate Board
Press Release

KITCHENER-WATERLOO, ON (December 3, 2010) –Home sales moved comfortably in November, with a total of 484 homes reported sold through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB). This is within the traditional range for November sales over the past five years.

The condominium property class had a notable increase in November, as the only residential property type to see an increase in the number of units sold compared to last year. There were 122 condominium units sold last month, an increase of 22 percent over November 2009.

The most popular price range in November was for home selling between $200,000 and $225,000, whereas over the last two years, the greatest number of homes has sold in the $225,000 to $250,000 price range.

“Consumers favoured more modestly priced homes in November, however on a year-to-date basis, it is amazing how the higher priced properties are driving much of the local real estate market,” says George Patton, President of the KWREB.

The strength of this residential market has resulted in a record breaking dollar volume of sales through the KWREB’s MLS® System, with year-to-date results for 2010 currently showing a total of $1,753,664,113, a 9.6 percent increase over the same period last year, and easily surpassing the previous record posted in 2007 of $1,619,377,742.

“In terms of total dollar volume, 2010 is poised to go down in history as our best year ever,” notes Patton.

These numbers represent more than just what’s happening in the residential market adds the president, citing a study by Altus Group published in 2009 which found the typical MLS® home sale and purchase between 2006 and 2008 produced $46,400 in spin-off spending, including renovation and the purchase of furniture.

The average price of all residential properties sold through the MLS® System of the KWREB last month was $282,629, a 0.4 percent decrease compared to November 2009. Detached homes sold for an average price of $322,839 last month, a 0.6 percent decrease relative to one year ago.

Condominiums sold for an average of $209,094 in November, a 5.5 percent increase compared to the same month last year.

[benjaminbach]

CTV will be covering the housing market tonight at 6pm.
They spoke to me about the drop in housing starts, year over year, and if I thought it was an omen or a fluke.

Also, new CMHC rental market statistics for the Kitchener CMA (includes Waterloo, Guelph, Cambridge, Woolwich & North Dumfries) can be found on my site at this link: Waterloo Region’s Tightest Rental Market is…

[Spokes]

Top 8 Reasons You Should Invest in Waterloo Region Real Estate
December 22, 2010 | by Benjamin Bach

KW has been named the top real estate investment destination in Ontario by the Real Estate Investment Network for a couple years in a row, and this year the trend continues.

Why are real estate investors focused on our city? Here are the top 8 reasons people are investing in Waterloo Region real estate now:

1. Top Area to Invest – The Real Estate Investment Network named Kitchener Waterloo & Cambridge (“the Technology Triangle”) the #1 city to invest in Ontario and #2 in Canada, behind Calgary.

2. Low Interest Rates - Currently we have very low interest rates – although there is a slight upward trend right now – which makes NOW a great time to invest. Rates will be going up in the future. It’s a matter of how soon, and how much. Smart real estate investors are taking advantage of historically affordable cost of borrowing money.

3. Great prices – Investors love Waterloo Region because it has a booming economy without big city property prices. Our clients invest in condos ranging from $120,000 on up, and there are opportunities to buy multi-family housing with cap rates of 7%, leaving room for healthy cash flow with today’s low interest rates.

You can buy good quality new construction rental units here, for much less than you’d pay for an older condo in Toronto. (That’s what our clients from Toronto happily do, over and over again).

4. Growth – Waterloo Region is growing at a rapid rate. If you haven’t been here in a few years, just drive down King St! There are multiple mega million dollar developments that are underway or have been completed recently – The Bauer Lofts, The Barrel Yards, the Arrow Lofts, Kaufman Lofts, the new McMaster medical school and University of Waterloo Pharmacy school, the new King St streetscape in downtown, the new Uptown Waterloo, the Kitchener Market, Market lofts; and LOTS of development in the university areas as well.

Also, the University of Waterloo has recently announced plans to double it’s footprint over the next 40 years.

5. Stable, Diverse Economy – Kitchener Waterloo is a market supported by strong fundamentals – world class high tech companies, universities and NGOs; a strong manufacturing sector; proximity to Toronto and the United States; an international airport; continued job growth etc.

In the July 2010 figures released by Stats Canada, the jobless rate of the KW area fell, while national unemployment rose.

6. Access to Property Management – All of our clients have access to world class property management for a very reasonable rate.

7. Great Business Community – Major companies and organizations call the Technology Triangle home including RIM (makers of the BlackBerry), Toyota, OpenText, Manulife, Sunlife, the Perimeter Institute, the Centre for International Governance Innovation, and a host of world class local companies.

8. Awesome, Smart People - Kitchener Waterloo is the MOST INTELLIGENT COMMUNITY IN THE WORLD. Take that Toronto

You can read more from Benjamin Bach here.

Benjamin Bach is a Sales Rep. & Director at KW Commercial Realty, a division of Keller Williams GTR. Not intended to solicit clients or properties under contract for real estate services.

[benjaminbach]

Top 9 Reasons You Should Invest in Kitchener Waterloo Real Estate, or Why REIN loves KW

[Spokes]

2010 sees second highest number of home sales in Waterloo Region
January 7, 2011 | Dave Berman, Wonderful Waterloo Staff

2010 could only be outdone by 2007.

According to the Kitchener-Waterloo Real Estate Board (KWREB), last year marked the second highest total annual sales in the association’s history. 6,388 homes were sold by real estate agents on the multiple listing service. That total was only second to the total reached in 2007.

The dollar volume of all residential real estate sold last year jumped 9.3 percent to $1.8 billion compared with 2009. This showed continued confidence in the local real estate market.

In March and April the sale of residential properties were setting monthly records. Things cooled off in the second half of the year though.

A number of factors played a role in the high number of sales in the first half of the year and cooler second half. “The federal government announced tighter mortgage rules," said George Patton, President of the KWREB "buyers were rushing to beat the introduction of the HST, and the central bank was forecasting higher interest rates.”

December capped the year off on a strong note recording 326 home sales, down 4.1 percent compared to December 2009, but still well above the previous 10 year average of 225.

The average sale price of detached homes was $329,797 last year, an increase of 9.3 percent, whereas the average sale price of all residential real estate sold for $289,338, an increase of 8.6 percent.

The condominium market was also very active in 2010 with a total of 1,221 sales, an increase of 8.6 percent relative to year-end results in 2009. Condominiums represented 20 percent of the overall residential market share in terms of unit sales by type.

2011 is expected to be equally impressive with Patton predicting a slow start followed by a very busy March, April and May.

[UrbanWaterloo]

Kitchener Housing Starts Higher in 2010
Jan 11, 2011 | Link

TORONTO, ONTARIO - Canada Mortgage and Housing Corporation (CMHC) released December preliminary housing starts data for the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) today. Construction began on 195 homes, virtually unchanged from the 194 units started in the same month of 2009. Builders laid foundations for 77 single-detached homes in December, down from the 121 units started in December 2009. While semi-detached starts were also lower, townhome and apartment starts were higher.

"Housing Starts Highest in Five Years": PDF



Construction began on 2,815 homes in 2010, up more than 20 per cent from the 2,298 units started in 2009. Starts were higher for all housing types, except townhomes. Single-detached starts increased to 1,255 units in 2010, up from the 1,161 homes started in 2009. All municipalities, except Cambridge, recorded higher starts in 2010.

"After a strong start to 2010 as people bought early to avoid the HST and anticipated mortgage rate increases, new home starts trended lower for the latter part of the year. But overall, housing starts in 2010 were the highest since 2005. Low mortgage rates and stronger demand for apartments explain the increase in starts," said Erica McLerie, Senior Market Analyst for the Kitchener CMA. "Demand for new homes will pick up gradually throughout 2011 from the low level at the end of 2010," added McLerie.

HOUSING STARTS - KITCHENER-CAMBRIDGE-WATERLOO CMA 
YEAR-OVER-YEAR COMPARISON-MONTH OF DECEMBER AND YEAR-TO-DATE
---------------------------------------------------------------
                 Single    Semi      TH     Apt   Total   % Chg
---------------------------------------------------------------
---------------------------------------------------------------
Cambridge City                                                 
  Dec 2010           27       0      18       0      45   -4.3%
  Dec 2009           35       0      12       0      47        
Kitchener City                                               
  Dec 2010           35       0      25      54     114    4.6%
  Dec 2009           50       8      35      16     109        
Waterloo City                                               
  Dec 2010            4       0       0       9      13    8.3%
  Dec 2009           12       0       0       0      12        
Woolwich Twp.                                               
  Dec 2010           10       0      12       0      22   -4.3%
  Dec 2009           21       2       0       0      23        
North Dumfries Twp.                                            
  Dec 2010            1       0       0       0       1  -66.7%
  Dec 2009            3       0       0       0       3        
KITCHENER CMA(2)                                               
  Dec 2010           77       0      55      63     195    0.5%
  Dec 2009          121      10      47      16     194        
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
                Single    Semi      TH     Apt   Total   % Chg
--------------------------------------------------------------
--------------------------------------------------------------
Cambridge City                                                
  YTD '10          267       2      84     198     551  -34.4%
  YTD '09          410       2     207     221     840        
Kitchener City                                                
  YTD '10          616      92     307     287    1302   50.9%
  YTD '09          412      36     299     116     863        
Waterloo City                                                 
  YTD '10          115       0      24     481     620   92.5%
  YTD '09          106       0      43     173     322        
Woolwich Twp.                                                 
  YTD '10          210       0      83       2     295   19.9%
  YTD '09          206      24      16       0     246        
North Dumfries Twp.                                           
  YTD '10           47       0       0       0      47   74.1%
  YTD '09           27       0       0       0      27        
KITCHENER CMA(2)                                                
  YTD '10         1255      94     498     968    2815   22.5%
  YTD '09         1161      62     565     510    2298        
--------------------------------------------------------------
--------------------------------------------------------------
                                                              
Source: CMHC 
(2)Kitchener-Cambridge-Waterloo CMA includes Kitchener, Waterloo, 
   Cambridge,Woolwich and North Dumfries                             

[Shawn]

The Long-Term Stability of Canada's Housing Market
Ottawa, January 17, 2011 | LINK

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

[Osiris]

Good, I suppose.

Now we just need a percent or so bump in the interest rates, and I can start deal hunting for my first place.

[benjaminbach]

Good, I suppose.

Now we just need a percent or so bump in the interest rates, and I can start deal hunting for my first place.

You are waiting until rates increase to buy ?

[Osiris]

You are waiting until rates increase to buy ?

Absolutely. There's a reason these rules are getting put into place - too many people are overstretching themselves upgrading their living standards.

Combine that with the fact that house prices have been soaring for reasons other than actual gain in value for sometime now, and that should only compound the issue - as housing is priced far out of the average person's means.

I'll be waiting with a fist full of cash to start grabbing when the interest rates rise and people can't maintain it any further.

We're about 12-18 months away, from what I can tell - short of the Mayans being correct (or some other unforeseen major event)

[benjaminbach]

depends on the city, and the type of property you're talking about.

If you're looking for a luxury condo in downtown Toronto, I tend to agree with you. If you're looking for a bungalow in uptown waterloo, you're not likely to find bargains when rates move up a percent.

[Osiris]

depends on the city, and the type of property you're talking about.

If you're looking for a luxury condo in downtown Toronto, I tend to agree with you. If you're looking for a bungalow in uptown waterloo, you're not likely to find bargains when rates move up a percent.

I'm guessing you'd say this because single-family homes in Canada tend to purchase fixed-rate mortgages?

[panamaniac]

Absolutely. There's a reason these rules are getting put into place - too many people are overstretching themselves upgrading their living standards.

Combine that with the fact that house prices have been soaring for reasons other than actual gain in value for sometime now, and that should only compound the issue - as housing is priced far out of the average person's means.

I'll be waiting with a fist full of cash to start grabbing when the interest rates rise and people can't maintain it any further.

We're about 12-18 months away, from what I can tell - short of the Mayans being correct (or some other unforeseen major event)

You seem to be assuming that people not already holding a fixed rate mortgage won't move to lock in when rates start to go up. I am wondering about the impact, if any, on purchasers of new condos who may find their costs will have gone up as a result of the shorter amortization period.

[benjaminbach]

I'm guessing you'd say this because single-family homes in Canada tend to purchase fixed-rate mortgages?

No, I just think that a lot of homeowners in this area aren't as overextended as they are in other areas like downtown Toronto

[jay]

No, I just think that a lot of homeowners in this area aren't as overextended as they are in other areas like downtown Toronto

I agree. I don't see the interest rate rising a % will have much impact on home values in Waterloo Region.

[jay]

You seem to be assuming that people not already holding a fixed rate mortgage won't move to lock in when rates start to go up. I am wondering about the impact, if any, on purchasers of new condos who may find their costs will have gone up as a result of the shorter amortization period.

I doubt the condo people will care if they are buying pre-build. It will take 3-5 years for them to close anyways. Also a good percentage of condo buyers are investors.

[benjaminbach]

I doubt the condo people will care if they are buying pre-build. It will take 3-5 years for them to close anyways. Also a good percentage of condo buyers are investors.

Just a thought... but people closing 3-5 years from now, especially investors, should really care about interest rate increases.

[Spokes]

Housing market holds steady in January
February , 2011 | John Thompson, Wonderful Waterloo

Residential property sales are right where experts are expecting.

There were 359 residential properties sold in January, that’s a 9.5 percent increase compared to December 2010 according to the Kitchener-Waterloo Real Estate Board (KWREB).

Experts said would be very difficult to match the record numbers established in January 2010. They were right as there was a 10.3 percent decrease relative to the same month a year ago.

“After posting record numbers in January of last year, we find January 2011 returning to more normal levels, “said George Patton, President of the KWREB.

January’s residential sales included 242 detached homes, 61 condominium units, 27 semis, and 26 freehold townhouses.

It was the end of the month that made January a success. “As usual, the first three weeks of January were fairly slow with much more activity in the final week of the month” said Patton.

The average price of all residential properties sold in January was $279,037, a 3.9 per cent decrease from January 2010.

Detached homes sold for an average price of $313,110 in January, a 3.4 percent decrease from one year ago. The average sale price for a condominium unit was $189,402 last month, a 3.1 percent decrease compared to last year.

[panamaniac]

...............

The average price of all residential properties sold in January was $279,037, a 3.9 per cent decrease from January 2010.

Detached homes sold for an average price of $313,110 in January, a 3.4 percent decrease from one year ago. The average sale price for a condominium unit was $189,402 last month, a 3.1 percent decrease compared to last year.

I think it might be wiser to focus on this part of the article and skip over the professional optimism that precedes this info.

[Spokes]

I think it might be wiser to focus on this part of the article and skip over the professional optimism that precedes this info.

Don't forget though, it was going to be just about impossible to match what happened last December.

Now if it were that much of a difference from December 2010 to now that'd be a concern.