•  
  • Sales will continue at a strong pace through the fi rst half of 2010  before moderating later this year and into 2011.
  • Low interest rates, population growth and a slightly better job market outlook will support housing demand through 2010.
  • New home construction will increase signifi cantly in 2010, but will remain below levels recorded between 2000 and 2005.  
  • Listings will respond to increasing home prices resulting in more balanced markets by 2011.

Kitchener Waterloo Real Estate Market Strong in 2010

Homebuyers returned to the market in 2010 due to the low mortgage rates and many have brought their home purchases forward in anticipation of the increase in mortgage rates in the

second half of 2010 and into 2011. Affordability will continue to play a major role in the strong level of sales through the spring and summer this year, but will slowly erode later this year and into 2011 as both as an increase in mortgage rates and higher prices combine to boost the

cost of home ownership. Moreover, the pool of potential fi rst-time buyers will diminish as this segment remains very price sensitive. Many were able to enter the market when mortgage

rates dropped in early 2009 and completed their purchase in the latter part of 2009 and early 2010.

CMHC had some interesting commentary on mortgage rates in Canada too:

With the overnight rate expected to increase in the coming months, mortgage rates have begun to rise. According to CMHC’s base case scenario, posted mortgage rates will gradually increase throughout the course of 2010, but will do so at a slow pace. For 2010, the one-year posted mortgage rate is assumed to be in the 3.6-4.8 per cent range, while three and fi ve-year posted mortgage rates are forecast to be in the 4.2-6.7 per cent range. For 2011, the oneyear posted mortgage rate is assumed be in the 5.0-6.0 per cent range, while three and fi ve-year posted mortgage rates are forecast to be in the 5.6-7.2 per cent range.

Rates could, however, increase at a faster pace if the economy recovers more quickly than presently anticipated. Conversely, rate increases could be more muted if the economic recovery is more modest in nature.

Ancedotaly, Kitchener Waterloo’s real estate market is still red hot. My friend Linda just sold a home for her clients in twenty-two (22!) hours, in multiple offers, for $7000 above asking price.

If you want a full copy of the CMHC report, send me an email, and I’ll send you the PDF in full.

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The house was what I’d call a “fixer upper.”

Colourful home in Vancouver, BC

Why do some real estate investors prefer a fixer upper to an investment property that is in better shape and ready to rent, like a  Kaufman Loft in Kitchener, or the new Bauer Lofts (if you live in Waterloo, read this article about the new restaurant there, the Bauer Kitchen) or even a pre-construction unit at the 144 Park Condos?

Some of our clients are able to renovate a house themselves, and are able to save money over an investor who is using a team of contractors to renovate or flip a house.  This means more profit for the investor.

Some people however, bite off more than they can chew when they try to handle a fixer upper.  So, how can you tell which you’re going to be? 

Are you a good fit to invest in a fixer upper in Kitchener Waterloo?

1) You have experience and are actually good at (as opposed to thinking you’re good at) renovating properties yourself

2) You have a dedicated team of contractors who will renovate your investment property

3) You have prepared an accurate budget for your renovation, including factoring a contingency fund – extra money that you’re setting aside, just in case.

4) You have set aside a cash reserve fund  in case their are additional problems you run into during the renovation, or if you have the rental property vacant for a few months before its rented.  You don’t want to be in a situation where you don’t have extra money set aside (outside of your family’s normal budget) if you need it.

If those things sound like you, let’s talk. 

If you’re interested in buying a fixer upper in Kitchener Waterloo, call me today at 519-772-4376 or email me at Benjamin@BenajminBach.com

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A new record for residential sales was set in October as MLS® homes sales to the end of October reached 579 units. That’s a 40.5 percent increase from October 2008 and the second consecutive month that sales set a monthly record.

“October was an especially busy month for local REALTORS®,”  according to Karen Shartun, President of the Kitchener-Waterloo Real Estate Board (KWREB). “Last month’s results represent the largest month over-month increase we’ve seen all year, and now overall residential unit sales have practically caught up to 2008 figures on a year-to-date basis.”

Year-to-date, there have been 5,545 residential units sold, which is just 1% shy of the 5,596 units sold to-date this time last year.
Home sales last month totalled $149,717,233 (up 37.5 percent from October 08) and included 355 detached homes (up 35.5 percent from October 08), 114 condominium units (up 25.3 percent from
October 08), 53 semis (up 165 percent from October 08), and 53 townhouses (up 43.2 percent from October 08).”

We have clients acquiring great property investment opportunities right now in the Waterloo region, ranging from condos and townhouses to land for development, student rental houses and apartment buildings. 

If you have any questions about the market, how you can start investing in real estate, or anything else I can help with, please contact me at Benjamin@BenjaminBach.com or call my office at 519 772 4376

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What questions do you have about new construction, or about investing in real estate in general?  Leave them in the comments, let me know on twitter @benjaminbach, add me on facebook and send me a msg, or email me at Benjamin@BenjaminBach.com (you can also call me directly at 519 772 4376).

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It was not listed on the MLS when we bought it – it was an opportunity that we brought to our real estate investor.

Today, I take you out into the market to look at a great opportunity an investor just bought.  The property was not available publically, we had already secured it with an offer by the time it hit the open market on the MLS.

How can you get great deals like these ?  Watch the video and find out.

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