The Kitchener-Waterloo Association of Realtors saw a record number of sales for the month of November.
As 2021 comes to a close, the story of the year in real estate in Kawartha Lakes remains high prices and low inventory in a hot market.
“Sales number have probably been an all-time high and obviously prices as well” for the year, says Eugene McDonald, president of the Kawartha Lakes Real Estate Association, although he adds that the past month has seen a slight plateau, consistent with the time of year.
“It would seem that anything coming on the market that is reasonably priced and in reasonable condition is sold within a week.”
The MLS Home Price Index composite/single-family benchmark price for Kawartha Lakes homes in November sat at $658,700, up almost 34 per cent from the same month in 2020.
The total dollar value of homes sold set a record in November at $69.9 million, up more than 15 per cent from November 2020.
Meanwhile, the number of active residential listings in Kawartha Lakes plummeted to just 67 units by the end of November, the lowest for the month in more than three decades and down more than 42 per cent from November 2020 and more than 65 and 76 per cent below five- and ten-year averages respectively.
Months of inventory, or the time it would take to sell current inventory given market conditions, ended the month at just 0.7, compared to the long-run average of 3.5 at this time of year.
The competitive market continues to drive many potential buyers to submit offers with no conditions and still go up against multiple offers on most properties. McDonald says that many agents continue to hold offers for between four to seven days as a competitive strategy.
“It’s safe to say that a lot of them are going for $100,000 over asking,” says McDonald, adding that one farm property in the Oakwood/Little Britain area recently went for $1 million more than the asking price.
Out-of-town buyers are often coming in looking for a secondary getaway home for a few weeks a year, says McDonald, and using the property as an investment through short-term rentals for the rest of the year, especially waterfront properties because it is a very profitable business.
“They are coming in with cash offers and more money,” he says, noting that the scales have tipped toward seeing more buyers from outside the marketplace than from within it.
“It’s almost impossible for a first-time homebuyer unless they have $700,000 or $800,000, to come into the market.”
McDonald estimates that about 60 per cent of buyers in the current market do not live in Kawartha Lakes.
Another concern with the fast-paced local market, according to McDonald, is that he is seeing two to four properties bounce back onto the market every week or two because the winning buyer ultimately was unable to secure financing.
“The banks aren’t appraising them at the value they are offering,” he says, meaning that when buyers get carried away in a bidding war and end up offering much more on a house than the bank appraisal of the property, it becomes difficult to obtain financing, as the lender wants the difference covered to bridge the value gap.
Ultimately, given the extreme competitiveness of the current market, with conditions being thrown out the window, McDonald says having a good local real estate agent who knows the area on your side through the process is key, on both sides of the sale.
“As a seller, you want somebody that will protect your home and enforce the (COVID) protocols, and as a buyer, you want someone who will notice if something is wrong because they have that experience.”
Looking forward to 2022, McDonald says the market may be more of the same for a while.
“What we’ll probably see within the first six months is a similar market to what we have, and we’ll probably see it slow down for the rest of the year.”
McDonald notes that there are some international indications that interest rates may be going up in the coming year, causing some mortgages to move out of affordable range for some and financial institutions to be pickier when it comes to lending. If inflation doesn’t flatten out, McDonald predicts seeing higher interest rates kick in by April.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
