“The transit solutions we’ve been discussing require so much change in infrastructure, dedicated lanes and such, that we need to build them out substantially in order to build them at all,” says Satnik, “but an Aerorail system is something we could start at a modest scale first, with as few as three stations: it’s a very responsible and much less risky first step that deserves to be considered, and the growth potential thereafter is really attractive.”

Click here to view Waterloo Region Transit Options

Effective today! A new service that we at Coldwell Banker are implementing

StreetText
Using Texting to Market Your Listings

“Texting is becoming a more common way for Buyers to communicate . . .”
Every listing that we have will have an additional sign with a property ID number on the “For Sale” street sign. A buyer can simply text the code to the number indicated and they will receive an instant message about the property followed by a photo gallery of the property.

Possibly the first in the Region to offer this service, we believe it is yet another valuable tool to help sell your home faster and attract more Buyers.

MLS® home sales in KW have seen a steady pace in February. February sale represented a 32.7% increase over January 2011. “These are above average numbers for February”, says KWAR President George Patton. “Keeping in mind that this time last year we had an unusually active February, setting a record for home sales in that month.”

Total residential properties sales brake down as such; 308 detached homes were sold, with 104 condo units, 46 semi-detached homes and 31 Freehold-Townhomes. The popular prices were $250,000 to $275,000 with an average sale price for all residences of $288,404. The single detached price category was $331,027 an increase of 1.1% over last year

While the average sale price can be useful to determine long term trends, caution is advised against using the information as an indicator that specific properties have increased or decreased in value. Specific information about your property value can best be determined by contacting a REALTOR®. 

I see a continuation of strong activity in the months ahead due to the status of the economy locally and that the Bank of Canada this week elected to not change the rates. Interest rates for a 5 year fixed mortgage can be had this week at 3.84%.

For more information on the aforementioned contact me – Thank you.

Denis Pellerin “Your Source™” for Real Estate in the Waterloo Region

(519) 742-1564 – alt (519) 577-8181
dpellerin@coldwellbankerpbr.com
www.kwrealestatebroker.com

This is a common question posed by homebuyers.

The answer is actually fairly simple. Of course, it depends upon what you are looking for and also what you can afford. But, let’s assume you have several neighbourhoods to choose from, in right price range.

The Ten Year Rule

The proper test questions all relate to the 10 year rule:

1) what was the area like 10 years ago,
2) what is the area like now, and
3) what will the area be like 10 years from now.

The answers to these questions will point you in the right direction. Just about all areas will follow through a cycle. They are brand new and relatively expensive. The price is reflective of the cost of recent, new construction. As new families move into the neighbourhood; schools, playgrounds, parks and plazas will complete the area, and it becomes more desirable. In about 10 years, the early plantings have taken effect and for the next 15 years the area improves in its desirability.

However, 25 years after the houses were built; the laws of nature have had an effect. The furnace, the air conditioner, and the roof all need replacement. The windows and the basement both leak. The electrical system can no longer support the requirements of a modern, active household. The kitchen and the bathrooms all need renovation.

So, the value of the house falls and the area to some degree is less desirable than it was 25 years previously. Around the neighbourhood, there are signs of neglect. Not everyone can afford a new roof, or new windows, or new siding, or a new fence. The area declines in relative value.

And, don’t forget about the competition! Not too far away, there are brand new homes in a brand new area starting the cycle from scratch. That means that they are only getting better, and the older neighbourhood is getting worse.

The second stage of the cycle is the general devaluation of the homes in the area. Some areas just keep getting worse and worse, while other areas soon reach the third stage: rejuvenation.

In every city, the usual rule of thumb is that the new houses are constructed in new subdivisions. These new subdivisions are generally located at the perimeter of the city. Usually, these new subdivisions are further and further from the downtown core. Assuming that the downtown area is desirable, then buyers will begin to look for opportunities once again in the older neighbourhoods.

If you live in one of these areas, consider removing some of the overgrown trees and vegetation. What about replacing the roof, renovating the kitchen and bathrooms? Why not construct an addition to house the new family room?

If that makes sense to you, it may also make sense to other homeowners. And, if they do it, someone else may do it too. Then, there’s less risk for the next person. Now, we have the start of a new trend. The area is “hot again”. It’s now “cool” to live there. The location never changed, but, on a relative basis, (compared to the rest of the city), it’s closer to the downtown than it ever was before. In addition, when the demand is high, it will make sense to consider a complete demolition and reconstruction on the lot. These are the signs of a hot, new neighbourhood.

So, what area are you looking for? Where does your area fit now? What about the area that you are looking at?

Remember the 10 year rule:

1) what was the area like 10 years ago,
2) what is the area like now, and
3) what will the area be like 10 years from now.

Obviously, the answer to the last question has to be “better”, otherwise, why buy there? You should also be able to say, that right now, it’s “improving”. If not, then it could be on a downturn, and you just don’t know it yet. Of course, you will be looking for the trends.

The Real Estate Cycle

These same trends take place in all price ranges and in all locations throughout the city. These same trends will continue for decades to come. The real estate cycle which seems to turn in quarter centuries is:

1) improvement and appreciation (incline)
2) disrepair and depreciation (decline)
3) rejuvenation (incline)

The best areas are those where the residents who occupy the houses can afford to live there. That means that the wealthy areas are likely to be well-maintained for longer periods of time, than the poorer areas, which as time goes by can fall into disrepair.

So, the only way you can tell about these neighbourhoods is to:

1) drive around and tour the entire area, and
2) review with me the MLS sales statistics over the decade.

If you don’t like what you see, then move on to a different neighbourhood. The cheapest way to move out of an area is simply to drive away, BEFORE you buy! Once you live there, it can be a significant problem, and you won’t be pleased. 

February 9, 2011, Coldwell Banker Peter Benninger Realty, Multimedia Centre – 508 Riverbend Dr, Kitchener 

I offer my notes in point form

USA

• The recovery is positive with forecast of unemployment to be below 7% by 2012, but slower than hoped. This may lead to an easing in interest rates to help assure that the US economy continues to see improvements

Canada

• The Canadian dollar is expected to remain high for the next few years
• Indicators are that we are returning to a trend not a bubble
• In the West there are signs of a bubble due to the high influx of foreign investments but this is seen as localized amongst small groups competing against each other
• Record low interest rates are subject to increase to curb inflation and high than desired dept to disposable income ratios; the Central Bank will intervene should there be signs of a slow-down in the recovery
• It is expected that debt to disposable income ratios will improve

Ontario

• Ontario’s economy is tied closely to USA economic behaviours more so than resources provinces because of the high manufacturing component; the GDP growth is less than the Canadian average
• Unemployment is on the recovery but moderate

Waterloo Region

• The Waterloo Region, including Guelph, rebounded out of the recession quickly compared to other Ontario communities and employment outperforms as a whole, running ahead of the province
• Local markets and indicators show a more neutral environment a return to past trends with rebounding housing prices
• Housing starts in the Region match that of Provincial levels
• Housing prices are above that of the Provincial levels and affordability levels are on par with Ontario levels
• Regional non-residential development is above that of the Provincial level
• Regional manufacturing is above that  of the province as the auto component is large with contribution from the hi-tech sectors

 Sales of residential properties by REALTORS® through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Real Estate Board (KWREB) were steady in January. 

There were a total of 359 residential properties sold last month, a 9.5 percent increase compared to December 2010, and a 10.3 percent decrease relative to the same month a year ago. This does not surprise me at all. You will recall my info BLOG of January 2 “The Year in Review”; I mentioned that January 2010 took off like a rocket, ahead of anything seen in normal year starts. We are back to normal starts and business is returned to normal levels with the last week of the month seeing the most activity. 

I expect that we will see a typical year, there will be some anomalies but investments in real estate will remain strong and will continue to give support to the economic recovery.

Members are to be congratulated on making us one of the largest boards in Canada.
by George Patton, President

Recently our board received the news that it is now the 15th largest real estate association in Canada, and as such has been invited to take participate in the upcoming Large Board Meeting in Ottawa in early February. This meeting is organized by the large boards themselves, with the Canadian Real Estate Association participating as an observer. Along with our first vice-president and executive officer, I look forward to representing the members of the KWREB at this table for the first time in our association’s history. I believe members are to be congratulated on making us one of the largest boards in Canada!

“Success usually comes to those who are too busy to be looking for it.” Henry David Thoreau

January and February are not the easiest months to try to sell a home. Curb appeal can be a bit challenging but there are still things that sellers can do to play up what they do have.

Keep the house warm. In these days of high heating costs, most people are keeping their homes on the cool side, but no one wants to enter a home and feel a sudden chill! Daylight hours are already reduced so make the most of it and let the sun shine through whenever possible.

Clean the windows and blinds. Daylight hours are already reduced so make the most of them and let the sun shine through whenever possible.

Add cozy pillows and throws. Creating the illusion of warmth with cooler weather accessories (used sparingly), goes a long way to making buyers feel how a room might envelope and comfort them on a cold night.

Spring will be here soon, but those clients that won’t be waiting for the green grass and fresh growth of April and May will benefit by creating a bit more warmth within the home until then.

On my last blog I provided the real estate sales numbers from Nov YTD. Here are the 2010 results over YTD 2009

- The dollar volume for 2010 was $1,848,289,175 up 9.3% from $1,690,746,153 in 2009.
- The average price for a single detached home in the Region is now at $329,797 up by 9.3%, the same percentage value as the sales volume.
- The most popular price range for single detached homes is in the range of $225,000 – 250,000.
- Elevated price-point homes experienced a large unit sales growth with those in the $500,000 to $699,999 range having increased in unit sales by 29.5% from 2009.
- The number of homes over $750,000 also saw hefty increases — up by 138.5%.
Top selling areas: Waterloo West and Kitchener West. This is no surprise as these are the areas with the most new developments.

I’d be happy to help your family and friends who are looking to buy or sell real estate. I will always safe guard the trust you extend to me as no greater compliment can be paid than to be introduced by you.