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What will happen next with Canada house prices?

Original Source:  Mortgage Broker News With the rate of homebuying in Canada cooling in recent weeks and house prices having declined nationally for two consecutive months, there’s been much conversation around the questions of whether bidding wars will die down and prices will continue moderating. While some believe that the federal government’s action on the mortgage stress test rate has had its desired effect – easing the trend of frenetic bidding far above list price – others in the mortgage industry have seen little evidence of that change in their markets. Tracy Valko (pictured), principal mortgage broker and owner of the Kitchener, ON-based Valko Financial, told Mortgage Broker News that the pace of bidding remained relentless in that region, continuing to expose what she said was a significant supply issue in the housing market. “What the government was looking to do in slowing down the market, and in trying to …
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OSFI Proposes Rule Changes to The Stress Test

The Office of the Superintendent of Financial Institutions (OSFI) recently proposed a mortgage rule change to help slow down the overheated housing market. The current rule for mortgage approvals is that you must qualify as if the interest rate is 4.79% OR the contract rate plus 2%, whichever is higher. This is referred to as the Stress Test. The OSFI is proposing that on uninsured mortgages (mortgages with 20% down or more), the stress test rate is increased to 5.25% OR the contract rate plus 2%, whichever is higher. Below is an example of how much income it would take to qualify for a $300,000 mortgage at no stress test, the current stress test, and the proposed changes. The OSFI is inviting industry stakeholders to submit feedback on the rule changes by May 7th, 2021. OSFI will reveal its final plan for the rule changes on May 24th, 2021, with an enactment date of June 1st, 2021. As a heart-centred team that advocates for fair …
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Record Smashing Number of Home Sales in March 2021

The Kitchener-Waterloo housing market broke records in March 2021. The month saw a total of 993 residential properties sold through MLS, up 72.7% from March 2020. “This is the first time we’ve sold more than 900 homes in a single month,” says Nicole Pohl, President of KWAR. “The second-highest number of sales occurred in May 2017 when there were 816 sales through our MLS® System.” Residential properties sold in March 2021 included 593 detached homes (up 69.4% from March 2020), 124 apartment-style condominium units (up 82.4%), 79 semi-detached (up 216%) and 197 townhomes (up 49.2%). The average price of a home in Kitchener-Waterloo was $765,393 in March 2021, up 30.8% from March 2020. The average price of a detached home was $899,460, up 32.3% from March 2020. Additionally, condominium units sold for an average of $423,470 (up 12%), semi-detached for $652,669 (up 32.5%) and townhomes for $622,258 (up 35.9%). There …
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5 Tips for Selling Your Home This Spring

The Spring housing market is here! The start of the new season brings sunshine, flowers, and an overly competitive market for home buyers and sellers. If you’re looking to put your home up for sale, you’ll want to have all of your bases covered to capture the attention of buyers and secure the best possible offer. Here are 5 simple tips to sell your home this spring! Do a thorough cleaning of your home A clean house will always give off a better impression to people touring your home. Dust off all surfaces, lamps, and furniture to give your home that extra sparkle. Next, remove any clutter throughout your home. This could include cleaning off the kitchen counters or tidying up the kids’ toys. If you don’t have the space to put something away, it never hurts to donate it to a non-profit organization. Check for winter damage The snow …
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Housing Continued to Surge in February

Click here for the full article by Dr Sherry Cooper, Chief Economist at Dominion Lending Centres. Today the Canadian Real Estate Association (CREA) released statistics showing national home sales hit another all-time high in February 2021. Canadian home sales increased a whopping 6.6% month-on-month (m-o-m), building on the largest winter housing boom in history. On a year-over-year (y-o-y) basis, existing home sales surged an amazing 39.2%. As the chart below shows, February’s activity blew out all previous records for the month.  The seasonally adjusted activity was running at an annualized pace of 783,636 units in February. CREA’s revised forecast for 2021 is in the neighbourhood of 700,000 home sales. Strong demand notwithstanding, sales may be hard-pressed to maintain current activity levels in the traditionally busier spring months absent a surge of much-needed new supply. However, that could materialize as current COVID restrictions are increasingly eased and the weather starts to improve. The month-over-month …
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February 2021 Produces Record Numbers in the KW Housing Market

The Kitchener-Waterloo housing market broke records in February 2021. The month saw a total of 597 residential properties sold through MLS, up 27.8% from February 2020. “Competition for homes continued to be extremely intense in February, leading to a record-breaking number of home sales for the month,” says Nicole Pohl, President of KWAR. “We continued to see dramatic increases in the average price in February due to the persistent and fierce competition for homes in our region combined with short supply.” Residential properties sold in February 2021 included 337 detached homes (up 23.9% from February 2020), 101 apartment-style condominium units (up 57.8%), 47 semi-detached (up 46.9%) and 112 townhomes (up 13.1%). The average price of a home in Kitchener-Waterloo was $752,289 in February 2021, up 32.9% from February 2020. The month came with a significant milestone as the average price of a detached home was over $900K for the first …
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Kitchener is The 8th Most Expensive City for Rent in Canada

Image via Padmapper According to a recent study by Padmapper, Kitchener is one of the most expensive cities to rent in Canada. The report shows that the average rent for a one-bedroom apartment in Kitchener is $1,390, positioning them at 8th place in the nation. For a two-bedroom apartment, the average rate of rent is $1,670. This is up two positions from a previous report which shows that rent is increasing at a rate of 5.3% every year. Kitchener comes in just ahead of Hamilton and Montreal on the list. Rounding out the top three is Burnaby, Toronto, and Vancouver. For the full report from Padmapper, click here.

A Semi-Detached Home in Kitchener Sells for $300K Above Asking Price

A semi-detached home in Kitchener just sold for $300,000 above the asking price. The Kitchener-Waterloo real estate market is clearly not slowing down for the time being. Located in Kitchener’s Laurentian West neighbourhood, the home was listed for $500,000. 53 offers later, it sold for $801,000. According to the story covered by CTV News Kitchener, residents in the area were not surprised, citing the booming housing market in the Region of Waterloo. Kitchener-Waterloo is a very attractive region for people looking to move out of bigger cities. Statistics Canada recognized Waterloo Region as one of the fastest-growing places, population-wise, in the country. “It’s just driving up that purchase price,” said Nicole Pohl, president of the Kitchener-Waterloo Association of Realtors. “We just do not have enough supply and, when there’s high demand, that’s just the reality of economics.” What are your thoughts on the surging housing market in Waterloo Region? Comment …
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Housing Continued to Surge in January

The housing market is still on the rise across Canada according to a recent press release from the Canadian Real Estate Association (CREA). Although supply continues to be an issue, home prices still remain strong and are expected to be for the entirety of 2021. Read below for an in-depth analysis from Dr. Sherry Cooper, the Chief Economist at Dominion Lending Centres. Click here to read the Original Article from Dr. Sherry Cooper. Today the Canadian Real Estate Association (CREA) released statistics showing national home sales hit another all-time high in January 2021. Canadian home sales increased 2.0% month-on-month (m-o-m) building on December’s 7.0% gain. On a year-over-year (y-o-y) basis, existing home sales surged 35.2%. As the chart below shows, January activity blew out all previous records for the month. The seasonally adjusted activity was running at an annualized pace of 736,452 units in January, significantly above CREA’s current 2021 …
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Warren Buffett Thinks You Should Refinance Your Mortgage Now

Tracy came across this article last week and shared it with the team.  This is certainly a trend we are seeing people take advantage of right now, and it makes perfect sense. Original Source:  The Motley Fool Warren Buffett doesn’t give stock tips, but he’s given plenty of “general” financial advice over the years. Recommending that people avoid credit cards, save money, and invest in index funds, the “Oracle of Omaha” has shared plenty of money ideas with the world. Today, he has a clear recommendation: borrow while interest rates are low. Thanks to the COVID-19 pandemic, we’re seeing unprecedentedly low interest rates across the Western world. That includes the U.S. as well as Canada. To help the economy along during lockdowns, central banks have lowered interest rates to sub-1% levels. As a result, bank interest rates to consumers have declined as well. Warren Buffett hasn’t been big on public appearances lately. …
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