Waterloo Region Sees Slight Sales Growth in April Alongside a Strong Increase in Homes for Sale

 

WATERLOO REGION, ON (May 3, 2024) —In April, a total of 692 homes were sold via the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR). This represents an increase of 3.3% compared to the same period last year and a decline of 12.3% compared to the average number of homes sold in the previous 5 years for the same month.

“The real estate market appeared to be well-balanced last month,” says Christal Moura, president of WRAR. “The market experienced a slight increase in home sales and moderate price fluctuations. Additionally, the number of homes for sale reached an eight-year high for the month of April, which translates to more available options for potential buyers.”

Total residential sales in April included 406 detached (up 0.5 per cent from April 2023), and 137 townhouses (up 15.1 per cent). Sales also included 90 condominium units (down 5.3 per cent) and 57 semi-detached homes (up 11.8 per cent).

In April, the average sale price for all residential properties in Waterloo Region was $800,087. This represents a 0.3 per cent increase compared to April 2023 and a 0.7 per cent decrease compared to March 2024.

• The average price of a detached home was $938,478. This represents a 1.4 per cent increase from April 2023 and a decrease of 1.8 per cent compared to March 2024.
• The average sale price for a townhouse was $660,945. This represents a 0.5 per cent decrease from April 2023 and a decrease of 0.8 per cent compared to March 2024.
• The average sale price for an apartment-style condominium was $485,556. This represents a decrease of 1.1 per cent from April 2023 and an increase of 0.5 per cent compared to March 2024.
• The average sale price for a semi was $665,936. This represents a decrease of 3.0 per cent compared to April 2023 and a decrease of 2.1 per cent compared to March 2024.

There were 1,443 new listings added to the MLS® System in Waterloo Region last month, an increase of 65.3 per cent compared to April last year and a 15.5 per cent increase compared to the previous ten-year average for April.

The total number of homes available for sale in active status at the end of April was 1,390, an increase of 101.4 per cent compared to April of last year and 13.6 per cent above the previous ten-year average of 1,224 listings for April.

At the end of April, there were 2.5 months of inventory, a 108.3 percent increase compared to last year and 38.1 percent above the previous 10-year average. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in April was 18, compared to 16 days in April 2023. The previous 5-year average is 15 days. 

The President of WRAR suggests that individuals who are interested in buying or selling a property in Waterloo Region should seek guidance from a local REALTOR® regarding the current market conditions. This will help them make an informed decision that is in line with their objectives and preferences.

These statistics provide a snapshot of the real estate market in the Waterloo Region in April, showing both positive and challenging aspects for buyers and sellers. WRAR encourages buyers to reach out to local Realtors for valuable insights about the current state of the local market and to receive tailored advice based on their specific needs.

View our HPI tool here to learn more: https://wrar.ca/hpi/ 

9 Ways to Boost and Build Your Credit Score

 

A good credit score is the key to buying a house, taking out a loan, applying for a credit card as well as many other important economic transactions. Banks use your credit score to determine your credit risk—the higher the score, the lower the risk and the more appealing you look on paper, which can give you better interest rates on loans.

Boosting your credit score from merely good to great will give you access to the best offers and best rates on nearly everything. Here are the best ways to do it.

1. First - Know where you stand
To improve your credit score, it's important to know where you stand now. You can get free credit reports once a year at sites like www.canadacreditfix.com or www.equifax.ca, but you typically have to pay to see detailed scores.

If you find negative information on your credit report that’s inaccurate, notify the appropriate institutions immediately. Credit report companies are required to launch an investigation on anything you report as false.

2. Get a credit card if you don't have one
Don't fall for the myth that you have to carry a balance to have good scores. You don't, and you shouldn't. But having and using a credit card or two can really build your scores.

If you can't qualify for a regular credit card, consider a secured credit card, where the issuing bank gives you a credit line equal to the deposit you make. Look for a card that reports to all three credit bureaus.

3. Add an installment loan to the mix
You'll get the fastest improvement in your scores if you show you're responsible with both major kinds of credit: revolving (credit cards) and installment (personal loans, auto, mortgages, and student loans).

If you don't already have an installment loan on your credit reports, consider adding a small personal loan that you can pay back over time. Again, you'll want the loan to be reported to the credit bureaus.

4.  Don't be a credit card collector
Never apply for more than two credit cards at any one time. If a credit bureau sees that you have applied for three or more cards in a short period of time, the company will probably assume you’re in desperate need of cash—and desperate people do not make good credit risks. An even worse scenario: The credit bureaus think your identity has been stolen, which would also send your credit rating down the tubes.

5. Pay down your credit cards
Paying off your installment loans (mortgage, auto, student, etc.) can help your scores but typically not as dramatically as paying down —or paying off —revolving accounts such as credit cards.

Lenders like to see a big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help; getting balances below 10% is even better.

Though most debt gurus recommend paying off the highest-rate card first, a better strategy here is to pay down the cards that are closest to their limits.

6. Use your cards lightly
Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. What's typically reported to the credit bureaus, and thus calculated into your scores, are the balances reported on your last statements.

You often can increase your scores by limiting your charges to 10-30% of a card's limit. If you regularly use more than half your limit on a card, consider using other cards to ease the load or try making a payment before the statement closing date to reduce the balance that's reported to the bureaus. Just be sure to make a second payment between the closing date and the due date, so you don't get reported as late.

7. Pay your bills promptly
Don't wait to pay off your bill all at once. You don't have to wait until the first of the month, or whenever your credit card is due, to make payments. You can make little payments throughout the month which can help lower your debt quicker. Small payments help your credit score because they lower your debt utilization ratio, which accounts for 30% of your credit score.

8. Keep your cards active
Simply having a credit card is not enough to maintain a good credit score. It's important to use the card, even if you just buy lunch. That way, it will get reported. You want to show that you can use credit responsibly. So don't close credit card accounts when you're not using them; that will bring your score down. Keep them active, so that you have as much credit history established as possible. The longer you have an account, the better.

9. Monitor your credit and make a plan to rectify poor spending decisions and become more diligent about paying bills on time.

How to Make Your Garage Sale Fun and Profitable

 

Rather than discarding what you may no longer use or want, a yard or garage sale can help you clear clutter and earn some extra cash. A garage sale can be a profitable and fun way to make sure items you no longer use or want are reused. Holding a garage sale is easy to do and all it takes is some time, a few organizational skills, and some marketing and you will be on your way to turning your junk into cash.

The following are some tried-and-true tips for a successful garage sale:

1. Planning
The success of your garage sale depends on how well you organize for this big event. You should prepare yourself several weeks in advance as you have to sort, clean, test, repair, label and count all items included in the sale. Choose a date that will not conflict with holidays. The weekends are a better choice than weekdays because more people are likely to show up. You should also consult your real estate agent about any pertinent bylaws from your municipality as certain cities control the number and length of garage sales in their area. Ask neighbours if they want to take part in a neighbourhood sale as this will give your sale a party atmosphere, which will draw larger crowds.

2. Items for Sale
You should display and sell practical household goods, bicycles, children’s toys, clothes, sports equipment and garden tools in your garage sale. All items should be clean, polished, and in good repair. Remember to limit yourself to the sale of used personal items, otherwise, you'll need a permit and GST/PST registration numbers if you are selling new items.

3. Advertising
As the big day approaches, promote your event effectively to attract as many people as possible. Put up posters in your neighbourhood to promote your event and write your address in big letters and don't forget to include the date and time of your garage sale. Make sure that the poster is legible from 10 to 15 metres away. You could also place a classified ad in your neighbourhood newspaper, distribute flyers to your neighbours, and get your family and friends to help spread the word about your garage sale.

4. Displaying Your Items
Before your event begins, ensure that you display your items attractively in neat and clean surroundings. Place things in categories as it will look more attractive. Place the more desirable items toward the back so browsers can notice other merchandise on their way to the best items.

5. The Big Day
On the day of your garage sale put up a big poster with balloons at the end of your street as well as the busiest intersection near your house to attract and direct people. Be ready early because the real garage sale pros tend to be early birds. Mark the price of articles and leave some room for bargaining. Don't be too rigid about the prices because you are having fun while cleaning out your house and garage. Make sure you have change, bags, boxes and tissue paper for fragile items and remember to have an extension cord and batteries to test that certain items are in working order. Use your garage sale as an opportunity to mingle with the neighbours and create a sense of community. Be creative and have fun! Mark the season of spring as your time to clean up your house and discard items that are cluttering the garage and house. Throwing a garage sale will help you do just that while having fun and enjoying a sunny afternoon.

5 Home Upgrades that Pay Off

 

When it comes to preparing your home for sale, some home sellers make it their objective to get the most return on their homes. Before starting any home improvement, you should evaluate the return on investment (ROI). Ask yourself what renovations will boost the resale value of the house.

Here are a few renovation ideas that pay off.

1. Floors
Replacing dated, scuffed floors can give your house a new sheen and make small spaces seem larger. Flooring can generate a payback as high as 75% on investment.  If you have carpet in the family, dining, and living rooms, it is recommended to change to hardwood and/or tiles. Not only will it make your home more elegant, but you will also enjoy the benefits of a healthier indoor environment, with fewer allergens.

According to the Appraisal Institute of Canada, the ROI on floor upgrades ranges from 50% to 75%. That means if you spend $5,000 redoing your floors, you can expect to recoup anywhere from $2,500 to $3,800 of your costs. If you’re a handy person, you can save yourself a few hundred dollars by installing the floors yourself.

2. Interior and exterior paint
Painting is an inexpensive and very profitable renovation project. Rolling on a new interior or exterior paint colour can generate a 50% to 100% return on investment. If you are planning on selling your house, choose neutral shades over trendy colours that may not appeal to all buyers.

3. Kitchen
Instead of spending a bundle gutting this essential room, think smaller. Counters, sinks, plumbing and lighting fixtures and appliances can change their look and cost far less than a major renovation. From an investment standpoint, the kitchen may be the best place to sink your money: Kitchen facelifts pay back about 80% of their cost.

Granite is the standard high-end finish for kitchen counters, but high-end synthetic stone materials look just as good, wear better, and cost about the same. Installing a granite or solid-surface counter, along with a stainless-steel sink and faucet, will probably run $5,000 to $8,000.

Your contractor might suggest that, while you’re replacing the counter, get a new backsplash, too. Save your money, as backsplashes don’t get the wear and tear counters do, and can add $2,000 or more to the cost of your modest upgrade.

3. Bathrooms
You can expect to recapture about 75% of the cost of a minor bathroom remodel. Most bathtubs already have showers built in, so the plumbing infrastructure is likely there. Replace a dated, rarely-used tub with a spacious shower and multiple showerheads. Similarly, adding a decent-sized shower to a half-bath makes it a whole bath — and much more marketable.

You can purchase a big “rainfall” showerhead for about $200, or spring for a fancier handheld showerhead and other gadgets for $500 and up. Don’t bother building a niche into the shower wall to hold shampoo bottles and such (typical cost: about $300).

4. Closets
Large and organized closets are a big draw for prospective buyers, though it’s impossible to put an exact payback percentage on them. Fitting a walk-in master closet with drawers, shelves, shoe racks, hooks, and poles can cost $500 to $2,500 or more, depending on the quality of the materials and the complexity of the design. Wood is the most expensive material, but typically delivers the best return on investment.

This is a job where it’s easy to overspend. So decide exactly what you want and need before you either buy the supplies or bring in a professional closet organizer, who will charge $50 to $150 an hour. Make sure you square reality with the many options: Will you really sort your socks into separate drawer dividers?

5. Energy Upgrades
Real estate agents say energy-saving amenities make a house more attractive to buyers. New windows, for example, return 77% of the project cost, according to Remodeling Cost vs. Value Report. But there’s another good reason to upgrade now; you can, in some cases, let the government help shoulder the cost of projects to make your house more energy-efficient and more attractive to prospective buyers.

You may need to wait years to recoup some energy conservation moves. So if you’re more worried about money than your carbon footprint, run the numbers to ensure you’ll be there by the time the cost gets covered. When you’re ready to sell, spell out your energy improvements for prospective buyers. Create a worksheet showing what you spent, plus the before-and-after utility bills.

Remember to keep receipts and careful records for all your energy-saving expenses. This will keep you square with the Canada Revenue Agency and let you prove to potential buyers that you have lowered their future energy bills.

How to Choose the Right Neighbourhood?

 

If you’re buying a new home, the neighborhood you choose can be just as important as the choice of home. Keep in mind that you're not just buying a house, you're investing in a neighborhood. The two are synonymous so you need to be extra careful in choosing the area you'll be living in. So, how do you choose the right neighborhood?

Factors to Consider When Evaluating a Neighbourhood
When evaluating a neighbourhood, you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

• Style of homes
• Quality of schools
• Property values
• Traffic
• Crime rate
• Future construction
• Proximity to: Schools, Employment, Hospitals, Shopping, Public transportation, Cultural Activities (museums, concerts, theatres, etc.), Highways, Airports, Beaches, Parks, Stadiums

Neighbourhood Search Strategies
If you’re a first-time-buyer with limited financial resources, it’s a wise purchasing strategy to buy a home that meets your primary needs in the best neighbourhood that fits within your price range.

You can maximize your home purchase location by incorporating some of the following strategies into your neighbourhood search:

• Look for communities that are likely to become "hot neighbourhoods" in the coming years. They can often be discovered on the periphery of the most continuously desirable areas.
• Look for a home in a good neighbourhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
• Look at the neighbourhood demand by asking us whether multiple offers are being made, whether the gap between the list price and sale price is decreasing, and whether there is active community involvement. You can also drive around neighbourhoods and see how many "sold" signs there are in a particular area.
• Look into purchasing a condominium or co-op, rather than a house, in a desirable neighbourhood. This way you still may be able to purchase in a prime area that you otherwise could not afford.

Record Low Home Sales Volume in March, as Inventory Begins to Climb

WATERLOO REGION, ON (April 4, 2024) —In March, a total of 596 homes were sold via the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR). This represents a decrease of 3.2% compared to the same period last year and a decline of 33.4% compared to the average number of homes sold in the previous 5 years for the same month.

Despite the challenging market conditions, the first quarter of 2024 saw an increase in home sales, marking an 8.0 per cent rise compared to the previous year. However, these figures still fall short of the first-quarter sales of the past decade.  

“While home sales in Waterloo Region hit a record low for March in over two decades, we're also witnessing a positive trend,” says Christal Moura, president of WRAR.  Over the past three months, prices and activity have started to pick up, and I expect this momentum will continue into the spring.”   

Energy-Saving Tips for Your Home

With energy costs eating up a larger portion of our income than ever before, it is very important to take all possible measures to conserve energy.  Here are some tips to help you save energy, save money, and do your part for the environment.

Heating and Cooling
About 60% of energy costs in a typical home are tied up in heating and cooling and 20% in hot water. So, these are the first places to look when it comes to saving energy.

Consider installing a programmable thermostat. In summer set the thermostat at 24°C while you are at home, and 28°C when you are away. Every degree you raise can reduce your cooling bill by about 2.5%.

In winter, set the thermostat to 21ºC during the day to 18ºC when you are sleeping, and 15ºC when you are out.

Wrap your electric water heater in an insulation wrap. This reduces 8-10% of hot water heater energy usage.

Apply caulking and weather stripping around drafty doors and windows to keep the cold air out in the winter (or hot air out in the summer). Proper weather-stripping, caulking, and insulation can save 5 to 15% of that heat loss.

Shade your outdoor central air conditioning unit with trees or shrubs making sure you do not block air flow around the unit. This can reduce 10% of your electricity use.

Clean the furnace filter monthly and replace it every three months. Check air vents regularly to ensure nothing is preventing the air from circulating freely.

It's a simple scientific fact: heat moves toward cold. In winter, heat moves toward the windows and doors, and if your home windows are not insulated properly, up to 50% of all heat inside a home could be lost. Having thermally-isolated windows and a thick window covering will help reduce heat loss considerably.

Lighting
Keep fixtures and bulbs clean. Dirt can absorb as much as 50% of the light. Always turn off the lights when leaving a room, even if it’s only for a few minutes. It’s just a myth that it takes more energy to turn a light on than to leave it on.

Try to position floor or table lamps in a corner. This allows light to reflect from the walls, making the room brighter without turning on more lights.

Replace traditional light bulbs with compact fluorescent bulbs (CFL). CFLs use up to 75% less energy than comparable standard light bulbs and can last up to 10 times longer.

Kitchen and Bathrooms
Switch non-essential chores from peak times to earlier in the day or even overnight when electricity demand and rate are less.

Install water-efficient low-flow showerheads and faucet aerators and install an ultra low-flow toilet or an early closure valve. Take showers instead of baths – they use less water.

Keep refrigerators and freezers out of direct sunlight, and allow at least 5 centimeters all around (or as recommended by the manufacturer) to allow heat to escape from the compressor and condensing coil. Allow hot foods to cool before putting them in the refrigerator.

The stove is another big energy guzzler. If you put aluminum foil on the bottom of the oven to catch drippings, make sure the foil does not block any of the oven’s circulation holes, and don’t put foil on the oven racks.

Use an electric kettle to boil water – not the stove, which is less efficient. Thaw frozen foods in the refrigerator before cooking, unless the label says otherwise.

Turn off the oven just before finishing – the oven will remain hot long enough to complete the job.

Don’t use a bigger pot than you need, and match it to the right size element.

Home Office and Living Room
Even when appliances are turned off, they continue to draw electricity. Unplug them when not in use. Turn off unnecessary lights in the house (they produce a lot of heat which works against the air conditioning.)

Using screen savers doesn't save any energy. Activate energy-saving settings on your computer or turn off your monitor when you are away from the computer.

Use area rugs on cold floors. If your feet are cold, your body will feel cold so rather than turning up the thermostat, put on a sweater.
 
Open draperies during the day on south-facing windows and let the sun heat your rooms naturally. Close your drapes and blinds during the night to reduce heat loss.

Installing ceiling fans can help to lower energy use in both the summer and winter. In summer, set your fan counter-clockwise to produce a cooling breeze. In the winter, set it clockwise to push warm air accumulated near the ceiling down back into the room.

Dishwashers and Washing Machines
If your dishwasher has the option, choose air drying rather than heat drying. If not, stop the machine before the drying cycle starts and open the door to let the dishes air dry. By doing so, you can reduce the dishwasher’s energy use by 10%.

Avoid running small loads in your washing machine. You can save 1% on your energy costs by loading your washing machine to capacity before running the cycle.

Wash laundry in cold water whenever possible. Rinsing your clothes in hot or warm water won’t make your laundry any cleaner. Select your washing machine’s cold water rinse and save 4% in energy costs.

Energy saving is a hot topic! Talk about it with your friends and family. Discuss and share ideas and learn about how each of you can do better. Most likely you will come up with some creative ideas that are fun and can save you up to hundreds of dollars each year. Learn about how this topic fits into broader-scale environmental initiatives and the role we as energy consumers could play in saving Mother Earth.