Hello, and welcome to the Kitchener-Waterloo (KW) real estate blog!
I hope that over time you will find all the answers you will need about real estate and sustainable housing here. If you would like more information about any topic, please feel free to contact me.
This blog is laid out into several different categories, which you can find in the left hand column. These categories are:
- Buying : information for those looking to buy a home
- Selling: information for those looking to sell a home
- Rentals: information for landlords or those looking to invest in multiple family units or investment properties.
- Market Conditions: information on the real estate market in Kitchener-Waterloo region.
- Sustainability: information on sustainable housing, green building techniques and technologies and tips for making your home more sustainable.
- Uncategorized: anything else real estate related.
I also like to do surveys to find out how people are feeling about real estate and housing related issues. Please take my latest survey on sustainability in housing.
My friend and colleague Judita Makos has recently joined the blog to give an added opinion and voice to the Kitchener-Waterloo market. Judita is a dedicated professional with a background in construction, renovation, preparing income taxes and book keeping.
Please feel free to comment or ask questions on anything you don’t understand. I will be happy to explain further or provide you with more information.
Happy reading!
Rebecca
P.S.
I love this city, but sadly, I will be leaving it shortly!
I am heading to parts of West and Central Africa for the next two years to work and do research on the connections between the extraction of metals and violence which I will be writing on at my other blog A Peace of Conflict. During this time, I will not be available to help you with your real estate needs.
If you need real estate assistance, please contact my trusted friend Judita. She will gladly assist you with all your needs!
I will still occasionally be writing on one of my favorite topics, sustainability. Due to time constraints, this will not be regular. Judita will still be posting here on current real estate issues, so please watch for her upcoming posts.
Thanks to all my readers!
LOCAL-KITCHENER – WATERLOO
According to Kitchener-Waterloo Real Estate Board, total of 484 homes were sold in area through MLS, which is 7.8 per cent increase compared to October 2010 and 10.9 per cent decrease to November 2009.
122 condominiums sold in November, which is 22 % increase over November 2009
and average price for condominium was $209,094, which is a 5.5% increase compared to the same month
last year.
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.
The most popular price range was for home selling between $200,000 and 225,000,
Consumers favoured more modestly priced homes in November, however on 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 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.
TORONTO
Greater Toronto REALTORS reported 6,510 existing homes sales in November – down 13 % from november 2009 and the average selling price for November transactions was $438,030 – a 5% increase compared to same month in 2009.
“The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price,” said Toronto Real Estate BoardPresident Bill Johnston.
“Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area,” continued Johnston.
CANADA
Home selling price in Canada shows decrease of 0,3 per cent in the third quarter as the market has slowed quicker
than expected. However, yar over year, prices are still up by 7.9 per cent.
Canadian economy remains a problem though. The Canadian real Estate Association has downgraded their forecast
4 times this year already. Latest forecast calls for 1.6 per cent gain in average housing prices in 2011, down from
5.4 percent previously forecasted.
According to Stats Canada Municipalities issued $6.2 billion worth of building permits in October, down 6.5 per cent from September.
Statistics Canada blames the decline largely on drops in both the residential and non-residential sectors in Ontario and Quebec.
The value of residential permits fell 11.2 per cent in November, after substantial gains in September and October.
The value of non-residential permits remained at $2.7 billion as higher commercial and industrial construction offset a decline in the value of building permits for institutional projects.
The total value of permits decreased in half of the provinces, led by Ontario and Quebec.
Newfoundland and Labrador had the largest increase.
INTERNATIONAL
“There is growing evidence that the global housing market recovery may just be beginning to run out of steam,” said
Liam Bailey, head of research for London-based Knight Frank in a report.
After several quarters of rising prices globally, home appreciation has slipped considerably, especially in Europe where there are fears that some countries may default on their debt.
Ireland was in last place on the list at number 48, down by 1.3 per cent in the third quarter, or minus 14.8 per cent cent year over year.
Italy was in 37th place with minus 2.5per cent growth, Greece was in 38th place showing minus 3.1 per cent growth, and Spain was in 41st place, showing minus 3.7 per cent year over year growth.
The biggest global gainer was the Asia Pacific region, up by 9.9 per cent in the third quarter
. The weakest was Europe at 0.8 per cent
Hong Kong was in second spot, followed by China in third.
“China’s key cities may avoid a significant correction in prices as local government fine tune their land supply programs,” said Bailey.
However, Frank Knight analysts still expect that prices will fall by 20 per cent in major cities cities such as Beijing, Shanghai, Guangzhou and Shenzen next year.
Latvia was the surprise top gainer in the third quarter. It was in last place a year ago. But the country has been highly volatile. A new immigration law that relaxed residency rules for foreign investors has helped to boost house prices according to Frank Knight.
In the key United States market, prices are up by 0.6 per cent from a year ago, with average prices dropping to 2003 levels.
Brownfield properties have always suffered from negative perception. They’re considered to be contaminated, difficult to deal with and fraught with delays, high costs, and red tape.
Time and familiarity is needed for this to change. The push for urban intensification in recent years, and new programs and technologies are already making maNy stakeholders take a closer look at the development potential of brownfields.
Major projects like FILMPORT in Toronto and the Halifax Seawall redevelopment show what can be done to revitalize brownfields.
Term “brownfield” covers a wide variety of sites. According to NRTEE (National Round Table on the Environment and the Economy) brownfields fall into three categories;
- Top tier about 15 to 20 per cent of brownfields . These sites’ market value far exceeds the cost of remediation, and these sites are usually redeveloped quickly.
- Middle tier – 60 to 70 per cent . Cost of clean up and the potential value are high. These sites present a great deal of development potential, but are too expensive or risky to clean-up. This category stands to benefit most from incentives or regulatory changes that could tip the balance between cost and profit to encourage development.
- Bottom tier – 15 to 20 per cent; these are sites where cleanup cost would far outweigh the value of the land after cleanup. These sites have few development prospects.
Well-located brownfields often have a lot of development potential. Besides being closer to the city core than any new development could possibly be, these sites are usually already served by infrastructure such as utilities and roads – saving the need to build these from scratch. It also saves greenfield land on a city’s outskirts. In fact, it’s estimated that every brownfield redevelopment saves an area four-and-half times larger from being developed in suburbs.
Brownfields redevelopment can also have a hugely positive impact on the neighbouring communities. Sites tend to be in the older parts of cities. Experience has shown that redeveloping a brownfield reinvigorates the surrounding communities, creating more economic and social activity in the area.
by Judita Makos
More information about brownfields in Ontario http://www.ene.gov.on.ca/envision/land/decomm/brownfields.htm
Filed under: Judita Makos
FSBO or For Sale By Owner is a home put up for sale without the services of a real estate sales representative. It usually presents some unique challenges to the seller.
First of all, the owner needs to know local house market values and objectively compare like properties to his/her own property. Up-to-date pricing – the kind a local real estate agent knows – is a key to generating initial interest in the property for sale.
FSBO sellers should also be aware that many potential buyers expect lower selling price if real estate agent is not involved.
Also education or realty legal matters is crucial for any owner thinking of selling a property. Disclosures, legal forms and contracts must be in place and real estate laws must be adhered to in order to avoid any vulnerability to lawsuits. Also owners must be prepared to answer many phone calls and/or emails,and to have their house ready for visits at anytime.
So, it is safe to say that FSBO and Real Estate Sales Representatives are in competition. But as you can read in following article, FSBO got on CREA-MLS side against Competition Bureau. lol
Garry Marr, Financial PostPublished: Wednesday, April 07, 2010
MLS rival joins battle against Competition Bureau
Reuters
The Canadian Real Estate Association now has a strange ally in its fight with the Competition Bureau the owner of an independent site that aims to compete with the Multiple Listing Service.
National FSBO Network Inc. has filed a motion for leave to intervene in the case before the Competition Tribunal involving the federal watchdog and CREA, the group that represents more than 100 real estate boards across Canada and the country’s 98,000 agents.
Melanie Aitken, Commissioner of the Competition Bureau, filed an application with the tribunal in February in which she referred to CREA’s practices as anti-competitive.
The two sides have been battling over access to the MLS system, which is owned in Canada by CREA and which the bureau says is responsible for about 90% of residential property sales.
Last month, CREA approved new industry regulations that would give consumers some ability to decide how much or how little they use an agent on a real estate deal. Ms. Aitken rejected the changes passed by CREA. Her plan would allow real estate agents to provide a multitude of a la carte services, including using an agent just to list on MLS.
Private sales by owners represent as much as 30% of all transactions in some centres, National FSBO says. Its application suggests the government watchdog’s plan would put them out of business, thus reducing competition instead of creating room for it.
“We are not quite sure what the commissioner is trying to achieve,” said Stephen Skelly, vice-president of operations with Ottawa-based National FSBO. “There is a discussion of a fee- for-service operation and that’s the kind of thing FSBO businesses already provide.”
Mr. Skelly’s worry is that if agents list property on the MLS for a one-time fee and provide no additional service, his members won’t be able to compete because the MLS has such a dominant position. He is trying to link various FSBO networks across the country and has six signed up, including GrapeVine Home Marketing Consultants in Ottawa, one of the largest in eastern Ontario.
“There is serious concern in the FSBO community that if the commissioner’s application is successful, it would be very difficult for FSBO businesses to compete with agents who would have full use of the MLS and ‘related trademarks’ and who would have all of the advertising and marketing recourses of CREA and its members. This could ultimately lead to the demise of FSBO businesses and the costeffective services they provide, and effectively [create] a monopoly situation,” the application states.
Neither CREA nor the bureau would comment on the application. Both sides can file a motion with the tribunal as to why or why not Mr. Skelly should be granted intervenor status.
The bureau has also received a request for leave to intervene from Lawrence Dale, the former owner of Realtysellers, which says it was prime target of CREA’s anti-competitive practices.
No date has been set for the tribunal hearing.
Filed under: Rebecca Sargent, Uncategorized | Tags: auto repair Kitchener Waterloo, computer repair Kitchener Waterloo, good service K-W
Automotive repair:
I was referred to Christine’s by a good friend of mine who told me a lovely story of the service he had received here. When my old car needed new brakes, I called for an appointment. I was met with a friendly voice that was able to squeeze me in and help me almost immediately for my own safety. Christine was not only trustworthy (no unnecessary “fixes” or upcharges here), but extremely knowledgeable and caring.
Christines’s Automotive
38 Hanson Avenue, Unit 2 (just south of Homer Watson and Ottawa), Kitchener
Tel. 519-772-5044
Computer Repair:
All I can say is Notebook Galaxy. I love these guys! After bringing my broken laptop into three different shops and being told three different stories of what was wrong with it, then requesting work at one shop only to be told they don’t have to parts and I would have to purchase them myself separately, I finally found Notebook Galaxy. I walked in and it was crowded, but I was greeted immediately none-the-less with a friendly welcome and inquiry into my computer’s status. One man was sitting on a couch, a computer taken apart in front of him. The other man was multi-tasking and assisting three people at once behind the desk. I figured it would take a while, but I did not want to leave my computer at another place again. So I waited. To my surprise, they moved through the crowd quickly and efficiently and I was served within 5 minutes. The man on the couch quickly looked at my computer, made a few minor adjustments, and to my surprise, said “it’s fixed”. And it was. No insane prices or elaborate labour charges. Simple fixes, in front of your face. He also showed me how to maintain my computer, get free spyware, and other handy little tidbits that I still use. They have since been the only people I trust to touch my computer!
Notebook Galaxy
347 Weber Street North, Unit B (near the corner of Weber and Columbia), Waterloo
Tel. 519-886-1112
Filed under: Sustainability | Tags: earthship, food production, gray water, sewage, sewage treatment, water
reprinted from Earthship Biotecture.
We must become more aware of where our sewage goes.
Earthships contain, use and reuse all household sewage in indoor and outdoor treatment cells.
This results in food production and landscaping with no pollution of aquifers.
Toilets flush with treated gray water that does not smell.
Containment, Treatment & Distribution
The concept used for containment, treatment and distribution of sewage-water is based on and draws information from the wetlands concept which has long been used in exterior applications for thousands of years by humans and nature.
| The Earthship sewage system differs from the wetlands approach in that it primarily treats the gray water inside the building and the sewage from the toilet outside of the building, both in smaller areas. Greywater is the used water after all receptacles except the toilet.
All household sewage is used & reused in the interior and exterior planters, called botanical cells. |
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Use & Re-useWater is used to carry away our household sewage in a conventional way such as bathing, washing dishes, and for the toilet. The sewage-water, also called gray water, is used and cleaned for a second time in interior botanical cells. The flush toilet is the third use of the water. After the toilet, the water is contained and treated, and used a fourth time in exterior botanical cells. |
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Interior Botanical CellThe Earthship gray water system has been researched and developed by Earthship Biotecture for over 20 years. This system allows for the need of far less water than is conventionally assumed. Gray Water Organizing Module (gWOM)The gWOM pumps the treated water, which is now gray water to the toilet to flush. |
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Exterior Botanical CellThe effort to contain the outdoor system rather than letting it leach into the earth is much more realistic and manageable because of its lower volume. It should also be noted that one or many more contained cells can be added to the outdoor system if necessary. This simply adds to the controlled landscaping of the home. The objective is to eliminate the need for public sewage systems and un-contained septic systems that pollute the earth, while getting multiple uses out of all water collected in the catchwater systems. For the purpose of satisfying convention, the Earthship Sewage system is set up (via valving) to flow entirely into the conventional septic tank and on to a conventional leach-field. The Earthship water system is not, therefore, in place of but in addition to convention. |
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The path of WASTE water in an Earthship:
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| Also available are dry, Solar Toilets. These act like composting toilets, but they admit the sun to increase effectiveness. Construction drawings are available.
We live in a time when many parts of our planet are experiencing water shortages. The volume of water on this planet is finite whilre human population increases. As we gauge the depletion of our aquifers and the increase in population, we are able to pedict serious water shortages in the near future. We must begin now… learning to harvest water in each individual home. We must use this water many times before putting it back into the earth. When we do put it back, it must be in a form that works with existing nurturing forces and phenomena of the earth. To further compound the water problem on this planet, we have polluted and contaminated most of our easily accessible surface waters and are beginning to contaminate the more difficult to access aquifers beneath the surface of the our planet. This contamination happens because of the way conventional sewage systems operate. Facing the Facts
Almost anything that happens in the future can result in questionable availability of fresh water. This is not just an environmental problem. The continued pollution of the atmosphere, the surface and subsurface of the earth is not the only cause for alarm about availability of fresh water. Water availability to individuals is dependent on every other social system being in place, stable, health and at peace. It is inevitable that we will experience failure of one or more of these systems at some point in the future. |
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| We are simply adapting our needs to the already existing activities of the planet.
Why pipe water long distances from a centralized community water system, or from an expensive well that needs significant electrical power, depletes aquifers and lowers the water table, when water fall from the sky? Why have a corporate or political “middle man” between us and our energy needs? our vessel (home) must be designed to sail with the forces that exist beyond human control and exploitation. An understanding of mechanical systems for most humans is limited to what is within reach of their fingertips. It is understood that when you flip a switch on the wall, a light comes on. when you turn on the faucet, hot water comes out. When you pull the handle on the toilet, it flushes. Little though is given to where the electricity comes from or what kind of nuclear waste was produced to generate it. how many of us even know where the power plant is that supplies our power. Few people ever wonder which water table is depleted to bring them water and what chemicals have been added to it. Where does the sewage go after it is flushed and which rivers and lakes are polluted by it? Humans need comfortable temperatures, light, electricity, hot water, food, sewage treatment, etc. These necessities are all available within the framework of a certain “rhythm” in the Earthship. The more we are able to align our priorities and needs with the prevailing rhythms of the planet, the easier and less expensive (both in terms of economics and ecology) they will be to obtain. If our lifestyles can conform more to the patterns of the planet than to our socioeconomic system, we can reduce the stress on both ourselves and the planet. This is easier said than done due to the “reality” and the “gravity” of mortgage payments, utility bills and the generally high cost of eating and living. Most of us have no choice. We have to be places at certain times looking certain ways in order to make the money needed to make those payments. However, many people have built Earthships themselves and ended up with little to no mortgage payment. They also have little or no utility bills and their ability to grow food year-round inside the Earthship has greatly affected what they have to spend on packaged, processed foods. The condition of our planet tells us we must now begin to take responsibility for what happens beyond the reach of our fingertips. We must begin to reconsider the source of these utilities, our access to them, and how we dispose of the waste produced. The mechanical systems of the Earthship confront these issues directly. We call this direct living. Source, access and destination are all contained within the Earthship, within the reach of our fingertips. There is no mystery involved in Earthship electricity. There is no unknown source of water. There is no magical black hole that sucks up all our sewage. Instead, we work in harmony with the earth to deal with these issues – taking what it has to give us directly and giving back what it wants to receive. With this harmony ringing in our minds we evolve the Earthship Systems. |
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Filed under: Rebecca Sargent
Hello all!
I love this city, but sadly, I will be leaving it shortly!
I am heading to parts of West and Central Africa for the next two years to work and do research on the connections between the extraction of metals and violence which I will be writing on at my other blog A Peace of Conflict. During this time, I will not be available to help you with your real estate needs.
If you need real estate assistance, please contact my trusted friend Judita. She will gladly assist you with all your needs!
I will still occasionally be writing on one of my favorite topics, sustainability. Due to time constraints, this will not be regular. Judita will still be posting here on current real estate issues, so please watch for her upcoming posts.
Thanks to all my readers!
Rebecca
Filed under: Rebecca Sargent, Sustainability | Tags: earthship, Haiti, rebuiding, sustainable housing
This is the best idea I have seen for rebuilding Haiti so I have decided to pass it on in hopes that the organizers can reach their funding goals and provide the maximum assistance to those in need.
Those at Earthship Biotechture intend on teaching the people to build their own sustainable housing (earthship technologies) using locally found materials.
Currently the organizers are in need of:
- Camping food, Camping Gear
- Money
- Vaccines
- Connections with people and organizations in Haiti to partner with.
Please check out their website and pass this information on to everyone you can!
Thinking of those in Haiti. Our hearts and minds are with you.
Filed under: Judita Makos | Tags: investment properties, Judita Makos, Kitchener, real estate, realty, Waterloo, wealth
Why buy an investment real estate in Waterloo Region?
The communities of Kitchener, Waterloo, and Cambridge, known collectively as Canada’s Technology Triangle, are becoming known as a competitive area to build high-tech businesses. The area is so strong economically that the Real Estate Investment Network™ in its past research has dubbed it the “Economic Alberta of Ontario”. This continues to prove true as the region was once again selected as the number-one investment town in Ontario. Within a 24 hours drive, the Technology Triangle has access to more than 60% of Canada’s population and 40% of the U.S. population. The reinvention of the region’s economy in the last few years has led to investment in the information technology sector, a venture which has protected the Triangle from the steep increase in job losses experienced in many other Ontario communities. A commitment to infrastructure improvements and transportation projects will also help drive the economy and the real estate market in this area.
Research indicates that there are more buying opportunities now than in the last few years, meaning more investment options and better yields” said Don R. Campbell, REIN™ President and author of the best-selling books Real Estate Investing in Canada and 97 Tips For Real Estate Investing.
“With today’s mixed market signals it is critical that investors and home-buyers complete that extra level of due diligence. An economic fundamental, not speculation, plays the key role in whether a property increases or drops in value. The years of skyrocketing prices are finally over; however, over the long-term the economic fundamentals of these key regions will help their property values dramatically outperform other regions of the province.”
The Top Ontario Investment Towns report list:
1) Kitchener, Waterloo, Cambridge
2) Hamilton
3) Simcoe Shores:Barrie- Orillia
4) Brampton
5) Durham Region – Whitby, Pickering, and Ajax
6) Ottawa
7) Brantford
8) Toronto
9) Vaughan
10) Whitchurch-Stouffville
Why isn’t everyone buying real estate? Most people don’t understand how to buy, how to evaluate and how to manage their investment. First basic rule is not to buy a property unless it can produce cash flow. When you calculate the rent and subtract expenses there shouldn’t be anything else to pay. If you have to add money every month to pay for this investment then stay away!
The second rule for buying an investment property is to be wary of listings showing a great rate of return on projected values. If you are looking at an investment property ask for the income and expenses for the past 24 month. Also, allow for reasonable vacancy rate and don’t forget maintenance per unit.
Next step is to calculate capitalization rate, also known as the cap rate. It is not generally a great idea to have cap rate under 6-7.5% unless the property has some real upside. For example, it has additional land, it has been extensively renovated, or there is some potential for additional income.
Another factor to consider is the mortgage rate interest. For example, you buy an investment property at 6.5% cap rate, pay 25% down payment and pay 5% interest on remaining mortgage. On the money invested, you will earn 6.5%, but on the money borrowed you will earn the difference between cap rate and the interest rate. This creates increased return on investment (ROI).
Like all investments, buying and owning investment property poses a form of risk. Real estate investment is dependent on your management skills. People may end up selling, what would be the best investment for them in long run, only because they don’t have knowledge, patience and understanding of managing real estate.
Filed under: Judita Makos | Tags: Kitchener, Kitchener-Waterloo, market update, real estate market, Waterloo
A new record for residential sales was set by Kitchener-Waterloo Real Estate Board in November. Mls sales reached 556 units, which is 87.8% increase from november 2008.
“For the third consecutive month we have seen a significant resurgence from the downturn that started last fall” reports Ted Scharf, the new President of Kitchener-Waterloo Real Estate Board.
There have been 6,108 residential units sold, meaning sales will easily surpass 2008′s year-end total of 6,115 units. Homes selling between $350,000 to $500,000 totalled 90 in November, and increase of 233 % compared with November 2008 and an increase of 67 % compared to last month. Another bright sign for the local economy, was the increase in the sale of builder product last month. There were 85 new construction homes sold in November, marking a 214.8 percent increase over the same month last year.
Kitchener – Waterloo Real Estate Market Update
September – November 2009
| SEPTEMBER | OCTOBER | NOVEMBER | |
| Homes Currently for Sale | 1917 | 1819 | 1696 |
| Homes Sold | 531 | 579 | 556 |
| Selling Ratio | 28% | 33% | 33% |
| Sale Price vs. List Price Ratio | 98% | 98% | 98% |
| Average Days on the Market | 47 | 46 | 51 |
| Median Selling Price | $239,900 | $238,700 | $252,900 |
| Average Selling Price | $255,400 | $258,600 | $277,600 |
Listings and Sales by Price Range
| Price Range | Actives | Solds | ||||||
| SEPT | OCT | NOV | SEPT | OCT | NOV | |||
| $150,000 or less | 190 | 167 | 137 | 66 | 61 | 53 | ||
| $150,000 – $200,000 | 215 | 190 | 180 | 79 | 92 | 79 | ||
| $200,000 – $250,000 | 328 | 293 | 300 | 153 | 168 | 137 | ||
| $250,000 – $300,000 | 301 | 283 | 267 | 86 | 116 | 101 | ||
| $300,000 – $400,000 | 434 | 441 | 386 | 103 | 93 | 120 | ||
| and Over $400,000 | 449 | 445 | 426 | 44 | 49 | 66 | ||
For a detailed statistical report relevant to your specific property and neighbourhood please
JUDITA MAKOS, SALES REP
CENTURY21 HOME REALTY INC
DIRECT; 519-572-0765
EMAIL; judita.makos@century21.ca
