How to Get Top Value for Your Home

Knock Knock? Who’s there? Someone who wants to buy your house? Consumer Beware! For most readers this is no newsflash: Waterloo region’s residential real estate market is red hot!

Like many markets across the Greater Golden Horseshoe (GGH), we in Waterloo region have been experiencing record breaking sales combined with low inventory levels for months now. In other words, it is a sellers’ market.

During the first quarter of 2017, there were 1,532 home sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR). The average price of a residential home during this same period increased a whopping 28.3 per cent on a year-over-year basis to $468,653.

While statistics like this can paint some of the picture, what it cannot tell you is what your home will sell for. The fact is no one really knows what price their home will fetch until it is put to the test of being listed with your Realtor on the MLS® System.

These days we are seeing some sticker shock. For example, when a house priced in the $300,000 range subsequently sells for a hundred-thousand dollars over asking! Does this mean that every home listed for $300,000 will bring substantially more? Absolutely not! In fact, it might sell for exactly $300,000 or even less. Only the market can determine sale price, but the experience of a knowledgeable local Realtor can certainly help predict it.

With a shortage of listings (we have been sitting at less than two month’s inventory or less for the past 12 months) inventory levels are at an unprecedented low and buyer creativity at an all-time high. One strategy some buyers and their Realtors have turned to in these times is good old fashioned door-knocking to find homeowners who could be tempted to sell while the market is hot.

Now, knowing what you do know about today’s market, what would you do if someone came knocking on your door tomorrow, offering you X amount for your house? Would you know if what they were offering was fair market value?

There is certainly nothing wrong with this practice and when it works out it can be a win-win for both buyer and seller. On the other hand, my caution to homeowners is: the person doing the knocking may be offering you a price that sounds attractive, but how can you be sure?

Sometimes in this scenario, sellers are attracted by the idea of a quick hassle-free transaction. They’ve been offered a price that is way more than what they originally paid for their home, and maybe even way more than what they ever dreamed they could ever get.

I have heard a few anecdotes recently where the buyer knocking on the door has actually encouraged the homeowner NOT to use a Realtor (It would be unethical and illegal for a Realtor to do this by the way).

In one case, the gentleman did sell his house without the aid of a Realtor, and the price he sold it for – while far more than what he paid when he purchased it over 30 years ago, was substantially less than what he would have got had he put it on the open market.

I think the Canadian Real Estate Association’s latest advertising campaign says it best: “Live with No Regrets.” Using a Realtor is the most important decision you can make when buying or selling.

On whatever side of the transaction you are on, if you have a Realtor in your corner (i.e. you’ve entered into either a listing agreement or a buyer representation agreement) they have a legal duty to only act in your best interests. Furthermore, they are bound by the Real Estate Council of Ontario, the Canadian Real Estate Association and their local real estate board’s Code of Ethics, rules and regulations.

When your home is listed by a Realtor you get the counsel of someone who understands the market and can guide you on the best pricing and selling strategy. If you’re purchasing, your Realtor will provide you with insight and advice on the home, the neighbourhood, and when it comes to submitting an offer, how many other buyers you are competing against and advice on the price you offer. So what should you do when someone comes knocking on your door? Please take my advice: take their information and then talk to a Realtor. He or she will be able to assist you in reviewing the doorknockers’ offer and help you understand all of your options to ensure you end up with the offer that is best for you.

Source: http://www.kwar.ca/get-top-value-home/

Building technology: A vital home purchase consideration

A growing concern among many would-be home owners in Canada is the durability of their prospective abodes against property damage brought about by the steadily growing number of extreme weather occurrences.

“While safety is the main concern, it is also important to think about the costs associated with destruction and loss,” housing technology firm NUDURA recently stated in reference to severe wind, flooding, and fires.

One option that can make long-term living more cost-effective is going for what the company calls “disaster-resilient homes”. In NUDURA’s case, it allows Canadians to enjoy the benefits of its Insulated Concrete Forms: modules composed of two Expanded Polystyrene (EPS) panels connected with a hinged folding web, which are then stacked, reinforced, and filled with concrete.

The technology makes homes designed with NUDURA components far more durable than their regular counterparts, making them attractive investments in the long run.

“NUDURA ICFs can endure winds of up to 402 kph (250 mph) and the non-toxic fire retardant expanded polystyrene foam provides a fire protection rating of up to 4 hours, ensuring that [the structures] are safe and secure in almost any situation,” NUDURA technical services manager Keven Rector said.






Source: http://www.canadianrealestatemagazine.ca/news/building-technology-a-vital-home-purchase-consideration-226053.aspx

Interest rates held as BoC weighs risks

The Bank of Canada held interest rates at 0.5 per cent Wednesday with an assessment of the economy which has some positives tempered with risks.

Governor Stephen Poloz said that while the economy is adjusting to lower oil prices and inflation is broadly in line with expectation, it expects growth in the second quarter to moderate from the first.

The bank is still closely watching high levels of household debt and rising house prices but noted that consumer spending and debt levels are robust and that is spreading broadly across regions.

Macroprudential and other policy measures, while contributing to more sustainable debt profiles, have yet to have a substantial cooling effect on housing markets, the bank said.

In its assessment of the BoC’s announcement, the Conference Board of Canada highlighted the ongoing risk of protectionism and the imbalances in real estate values and rising household debt.

“The subdued pace of inflation and uncertainties stemming from global and domestic risks has the Bank of Canada in wait-and-see mode. The next move in interest rates is likely upwards, but this may not come until early next year.
By then, there will be a greater understanding of how the risks may play out,” said Craig Alexander, Senior Vice-President and Chief Economist, The Conference Board of Canada.











Source: http://www.canadianrealestatemagazine.ca/market-update/interest-rates-held-as-boc-weighs-risks-225937.aspx

GMREB cautions against hasty imposition of foreign buyers’ tax

In a statement earlier this week, the Greater Montreal Real Estate Board (GMREB) urged provincial officials to take due diligence before imposing a foreign buyer’s tax similar to that of B.C. and Ontario.

This is because the Montreal market is nowhere near being overheated, and because “the proportion of foreign buyers is quite different in Montréal compared to Toronto and Vancouver.”

“Looking at the dwelling vacancy rate, the pace of price growth, the number of months of inventory, as well as the available data on the percentage of foreign buyers, there is nothing to suggest that there is a situation in Montréal that requires a quick response,” GMREB board of directors chairperson Mathieu Cousineau said.

Fresh data from the Canada Mortgage and Housing Corporation estimated that the share of foreign buyers in the entire Montreal metropolitan area across all property types is only 1.5 per cent, a far cry from the 9.7 per cent proportion in Vancouver and the 4.9 per cent in Toronto.

“Overall, foreign buyers still have little impact on property prices in Greater Montréal. According to our brokers in the field, foreign buyers are present primarily in more well-off markets such as Ville Mont-Royal and Westmount,” according to the GMREB statement.

Cousineau added, however, that “we do believe that there is an urgent need to put in place the means to effectively identify property purchases by foreign nationals. This will enable us to monitor the evolving situation and make informed decisions.”

“It is important not to lump all foreign buyers together. A distinction must be made between foreign investors who buy properties for speculation and foreign buyers who establish their principal residence here,” the GMREB concluded.









Source: http://www.canadianrealestatemagazine.ca/news/gmreb-cautions-against-hasty-imposition-of-foreign-buyers-tax-225643.aspx

Mixed-use transit hub project to arise in Waterloo Region

The Region of Waterloo has taken its initial steps in the development of the King Victoria Transit Hub in Kitchener, having launched the first phase of bidding for private developers.

“This high profile project is predicted to change the way people think about Waterloo Region,” the Region stated in its announcement of the large-scale development.

The mixed-use transit hub will incorporate “seamless access to multiple modes of transportation and integrated residential, office and retail space. More importantly, the hub will connect our community to the Toronto-Waterloo Innovation corridor, promoting growth and generating substantial economic development.”

“By creating a landmark stop with space to live, work and shop, the transit hub will offer Waterloo Region much more than a better commuting system,” Regional Chair Ken Seiling added.

The request for qualifications (RFQ) phase is meant to draft a short list of applicants for the final request for proposal. RFQ closes on June 30, and the short list is scheduled to be announced on September 2017.

The Region stated that it will sell the property to the winning bidder, who will be responsible for the construction of the transit hall and related structures.

“Once complete, the transit hub will connect Grand River Transit (local buses), ION (light rail), GO trains, VIA rail, inter-city buses, taxis, pedestrians and cyclists. The onsite buildings will include residences, offices and stores. The site will also incorporate public spaces and transit support areas like pick-up and drop-off areas, bus bays and links to trails/paths.”












Source: http://www.canadianrealestatemagazine.ca/news/mixeduse-transit-hub-project-to-arise-in-waterloo-region-225236.aspx

Canadians now more optimistic about home prices - poll

The latest edition of the Bloomberg Nanos Canada Confidence Index saw optimism about home prices reaching an unprecedented high in Canada.

The survey, which is considered statistically accurate within 3.1 percentage points (19 times out of 20), found that 48.5 per cent of the polled consumers see home prices rising in the next 6 months, the highest ratio since mid-2008. The overall confidence index reached 59.1, the highest since March and surpassing the 12-month average of 57.4.

“Bullish sentiment on real estate in Canada continues to drive consumer confidence,” Nanos Research Group Chairman Nik Nanos said.

Ontario tied with British Columbia for the highest confidence on a per region basis, both at 62.9.

The heightened hopefulness came amid new measures enacted by the Ontario government to moderate red-hot price growth in the Toronto housing market. Last week, Ontario Premier Kathleen Wynne and Finance Minister Charles Sousa introduced a 15 per cent foreign buyers’ tax covering the Greater Toronto Area, and permitted Mayor John Tory to charge a levy on vacant properties.

However, the increased confidence stood in stark contrast to the survey’s results on opinions surrounding personal finances. 28.3 per cent of the respondents stated that they were worse off compared to a year ago, while only 18 per cent saw improvements in their pocketbooks.







Source: http://www.canadianrealestatemagazine.ca/news/canadians-now-more-optimistic-about-home-prices--poll-224621.aspx

Ontario wants to tax foreign buyers, vacant homes

The Ontario government has launched its response to the red-hot Toronto housing market which has spread to other parts of the province.

The Fair Housing Plan aims to tackle supply and affordability issues with 16 key proposals including expanded rent controls and greater collection of data.

The province is proposing a 15 per cent tax on residential properties in the Greater Golden-Horseshoe by by individuals who are not citizens or permanent residents of Canada or by foreign corporations.

The legislation, if passed, would apply from today (April 21, 2017) to transfers of land that contain at least one and not more than six single family residences.

Refugees and nominees under the Ontario Immigrant Nominee Program would be exempt and rebates would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students.

There could also be a tax on vacant homes in Toronto. The proposal is for legislation which would give the City the power to implement the taxation of homes left empty. Other municipalities may also be given the power.

Supply will also be tackled by allowing affordable housing to be built on some of the province’s surplus land; and
other incentives to get developers building affordable and rental units.

Some organizations have been quick to react to the Fair Housing Plan.

"As an insurer of first-time homebuyers, we have seen a growing divergence between what first-time buyers can afford and average market prices,” said Stuart Levings, President and CEO of Genworth Canada. “These measures will help responsible families and individuals achieve their dreams of homeownership while protecting the equity that existing GGH homeowners have invested in their properties.”

Meanwhile, the Conference Board of Canada said that it was time for Ontario to act.





Source: http://www.canadianrealestatemagazine.ca/market-update/ontario-wants-to-tax-foreign-buyers-vacant-homes-224429.aspx