The Deutschmann Team
RE/MAX TWIN CITY REALTY INC.
Phone: (519) 841-6511
Email: info@elitere.ca
Website: www.elitere.ca
 
 

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We hope this email finds you doing well 😊

Well, there is no doubt that the residential real estate market has been on fire the last 12 months.

The average residential home price has shot up from about $568,000 to $765,000 – an increase of about 35%. The single detached segment of the market is responsible for most of the heaving lifting as the average price for a single detached home went from $657,000 to $900,000 in 12 months representing a lift of about 37% - and that is after the average price retreated by $10,000 as we saw a healthy uptick in home supply hit the market. No doubt the supply was a direct result of those who own homes listing to take advantage of the hundreds of thousands in new wealth. We saw some Sellers opt to move up to a new home while others have decided to rent or move into an investment property they own.  

The pandemic has caused the population of Southern Ontario to spread. And with this movement prices have been influenced by those moving from higher priced areas to lower priced areas where their understanding of value has seeped into the prices being paid in the new location. This thinking combined with demand in areas with limited supply of homes available has caused prices to find new equilibrium. This price discovery has moved prices considerably in a short period of time and it is only natural for supply to increase, demand to slightly fall and prices to move down. Without this natural slowdown prices would move in a parabolic fashion to the moon. I am in no way making any predictions as that is a fool’s errand at this point, but it does seem like there will be a point where stuff just costs too much?

Recently we have had a lot of questions about the budget. I think everyone wonders how the Government keeps handing out money without needing a source other than a printer. The budget didn’t really do anything in terms of taxation. Personal and corporate tax rates are staying where they are – even as we expect a $500 Billion total deficit in Ontario by 2023/24. For now, questions about the Capital Gains Tax inclusion rate can be laid to rest though.

There has also been buzzing about mortgage stress tests changing to make it tougher to get a mortgage. There is a proposal to change the qualifying rate to 5.25% for uninsured mortgages rather than using the posted rate currently at 4.79%. This change affects those Buyers or those refinancing that have more than 20% down and will affect purchasing power by about 4-5%.  What are the consequences? It will likely pull demand forward as Buyers make purchases before any change and given the demand for homes, even when the change is implemented, the number of people that are affected will likely be so diluted that it won’t affect the overall price averages. Time will tell.

If you are thinking of making a move, or if you have any questions about the market, please reach out. We’d love to hear from you.

 

EXCLUSIVE OPPORTUNITIES:

We have been presented with the opportunity to sell one remaining unit in the Charlie West Developmeny by Momentum Developments, and a unit in the Garment Street Districtrict, both in Downtown Kitchener. For more details, floorplans and pricing visit: https://elitere.ca/exclusive-listings/

FEATURED LISTINGS:

Click here to see all of our fantastic listings and their virtual tours.

https://elitere.ca/team-listings/

 

What’s your Home Worth in Today’s Market?

 
 
If you own a stock, you can probably go online and quickly look up its current value.

What about your home? That, too, is an important investment and probably your most valuable one. Wouldn’t it be nice if you could “look up” its current value in just a few minutes?

Well, despite all the real estate data available on the internet these days, there is no site that will calculate your home’s true market value – at least not accurately. So, if you were to put your home up for sale tomorrow, how would you determine what it would likely sell for?

Your home’s probable selling price is influenced by the following factors:

  • The type and style of your home.
  • The condition of your home. (Is it “move in” ready?)
  • How well your home shows? (Is it staged?)
  • The desirability of the neighbourhood.
  • Recent selling prices of similar homes in the area.
  • The current demand for a home like yours.


All these factors, especially recent solds in the area, need to be considered in order to come up with the price range within which your property will likely sell.

Why is this information important? If you plan on listing soon, the benefits of knowing the probable selling price is obvious. But even if your plans to move are far down the road, it’s still a good idea to know what your home is worth – today. That information enables you to plan ahead and make better decisions. It’s something worth thinking about.

 

Should You Worry About Competition?

 
 
Buying a home is different than purchasing most other “products” in one important respect: agreeing to the price tag doesn’t guarantee you’ll get the property! There may be competing offers.
Fortunately, there is plenty that can be done to increase your chances of getting the home you want. 

The most effective strategy is to be proactive. Get alerted to and go to see properties that match your criteria the moment they come on the market. That way, you’ll get a jump on competing buyers. When you find a home you want, go in at the right price. You don’t want to pay too much, but your offer does need to signal to the seller that you’re serious. 

Effective offer presentation and negotiation also play vital roles. Having your offer presented with expertise and skill will maximize your chances of getting the deal. 

Yes, competing offers can make you anxious. But, if you have the right expert working on your behalf, you can breathe a little easier.
 

New Decking Options

 
 
When you decide it’s time to install or replace a deck surface, you may find there are more choices than you had expected. There are many new materials and installation options that have come to the market over just the past few years.
For example, in addition to traditional wood decking, there are contemporary synthetic and composite materials that possess properties that are remarkably similar to natural wood species – in terms of texture, appearance, density and workability. However, these materials offer superior durability in tough weather conditions and a wider range of colours than natural surfaces.

In addition, manufactured decking surfaces provide barefoot comfort without worry of splinters, as well as water-shedding properties that help improve traction after a rainstorm.

Synthetic materials are also very popular when it comes to railings and steps thanks to innovative installation systems that are easy enough for most industrious homeowners to tackle. Many offer pre-cut and/or interlocking pieces. As well, certain aluminium installations are enjoying renewed popularity thanks to new options that are clad in vinyl for extended protection and reduced maintenance.
 

Notable, Quotable, Quotes!

“When your values are clear to you, making decisions becomes easier.”
Roy E. Disney

“Leadership and learning are indispensable to each other.”
John F. Kennedy

“The only person you are destined to become is the person you decide to be.”
Barbara De Angelis

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RE/MAX TWIN CITY REALTY INC. , 83 Erb St W, Waterloo, Ontario N2L 6C2 Canada

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