April Update 2011

The housing market continues on a relatively stable and balanced track. Sales activity is 46% above the recessionary low of December 2008 and not far behind the recovery high of December 2009. Home prices rose, while sales remained on par with the previous month. 

Resale housing activity slowed 2% from January to February. This slight decline represents the first month-to-month drop in home sales since the July low but they are up 22% since then. Historically low interest rates and a rush to buy before another round of mortgage-regulation tightening will continue to support the market in the first quarter of 2011.

Positive signals of slow and steady growth continue in Canada. GDP in January showed solid growth, which was on par with expectations. Manufacturing output related to automobiles was a significant portion of this growth. Strong auto sales in the United States and Canada signal more growth in the coming months. 

Moving forward, rising interest rates and weak job growth are factors that are responsible for keeping sales activity and price appreciation stable and slower than seen during the recovery. Mortgage regulation changes will likely spur upward momentum in home sales this spring. Due to improved affordability, balanced markets, and record-low mortgage rates, there are great opportunities for both buyers and sellers.

Sale Stats for the Kitchener Waterloo Board

   Residential sales are DOWN 15.4% from this time last year and down 10.4% this year.  Days on market have increased from  38 to 43 for the month and 43 to 49 for the year. ( About a week longer ) .

Average sale price for detached homes UP 1.1 %         ($331,636)  for the year. 

Average sale price for semi detached UP 7.0%  ($239,747) for the year. 

Average sale price for freehold townhomes UP 2.1%     ($249,614 ) for the year.

New listings DOWN 1.8% for the year to 2,738

March 2011 sales 608 / March 2010 sales 719

Solds Year to date

2007  1,492        2008  1,465     2009  1,093

2010  1,645        2011   1,474

Update on Waterloo's proposed residential rental licensing program
The City of Waterloo has released its revised proposed residential rental bylaw. City staff has tabled the revised report at the Council meeting on Monday, April 11, 2011. (No decision was made on this date.)  On May 9, 2011, Council will hear delegations on the issue and consider the revised residential rental licensing bylaw.

For more information, you can visit the City's website at http://www.waterloo.ca/rhlr

Mortgage Rates

Low interest rates and stabilizing home prices continue to open up homeownership to an increasing number of Canadians. As widespread global recovery gains further footing, rates will increase to combat inflation and keep it near the 2% target. In fact, rates already have come back up to last year’s level from record lows in December and January.

Mortgage Type                     Rate

1 year                                        2.75%

3 year                                         3.60%

5 year                                         4.04%   

Deciding to Buy

When first-time home buyers decide they are ready to buy, it is essential for them to begin the process by carefully assessing their values, wants, and needs—both for the short and for the long term.

This is a critical step since consultation sessions normally start with the buyers’ values. Afterward, buyers can explore their wants and needs and, once defined, determine actual criteria.

  In recent study shows how important the following home-buying factors were to buyers:

1. List Price: 72%
2. Location: 69%
3. Neighborhood: 55%
4. Floor Plan: 37%
5. Square Footage: 28%
6. Schools: 22%

By having the home-buying criteria in mind before walking into a consultation, buyers are off to a better start when meeting with their real estate agent. The consultation allows buyers to fill in any missing gaps within their values, wants, and needs.