June 12, 2019 Kitchener Waterloo Real Estate News

real estate bubble
Real estate bubble, not here, not now

Kitchener Waterloo Real Estate News

June 12, 2019 

Wednesday June 12, 2019. In this week’s Kitchener Waterloo Real Estate News: realtor reflections, May real estate statistics, housing starts, Florida, real estate bubble, software developers’ real estate, New York, Lone star bushwhackers. 

1

ReBooting the Realtor

Being a Realtor can be very humbling. We think we know how things are going to go. We have experience dealing in different types of real estate markets (buyer’s, seller’s, balanced), price ranges, neighbourhoods, seasonality, with different types of buyers and sellers, be they new or experienced, trusting or cautious… we know which are the sought-after condo buildings and neighbourhoods and we think we have a pretty good track record of getting things right. But we sometimes don’t. At times when we don’t (sports analogy here) get on base, sink the putt, get the ball or puck in the net, we think of our clients empathetically and keep the lines of communication open. No one is to blame. There’s no conspiracy. Things just didn’t go the way that they were predicted to go. It is time to rethink, reassess, rebook, reboot, reflect and move forward

2

The statistics from May

There were 694 residential sales last month, an increase of 11 per cent compared to April, and an increase of 7.2 per cent compared to the previous ten-year average for May.  

The average sale price of all residential properties sold in May increased by 10.6 per cent to $534,348 compared to May 2018. 

Here is the breakdown:

  • Detached homes sold for an average price of $623,289 an increase of 9.1 per cent compared to May of last year. 
  • The average sale price for an apartment style condominium was $332,309, an increase of 11.3 per cent. 
  • Townhomes and semis sold for an average of $402,426 (up 9.8 per cent) and $432,207 (up 9.3 per cent) respectively.

Other highlights

  • 1,123 residential were listed. This is an increase of 5 per cent compared to May of 2018, and an increase of 12 per cent in comparison to the previous ten-year average for the month of May. 
  • The total number of homes available for sale in active status at the end of May totalled 1,012, a decrease of 0.8 per cent compared to May of last year, and well below the previous ten-year average of 1,607 listings for May. 
  • The average days it took to sell a home in May was 19 days, compared to 20 days in May 2018.

See all of the statistics for May 2019 here.

3

Canadian housing starts slowed in May

Housing starts are an economic indicator of how well the economy is doing. National housing starts slipped to 202,337 units in May, down 13.3 per cent from 233,410 units in April. Economists had expected an annual rate of 205,000. 

4

It could only happen in Florida 

An Orlando homeowner owned a second lot next to his house. He added a pool that straddled the property lines. Then, following foreclosure, the two lots were sold to different owners, one of whom erected a fence, over the pool and through the garage.

5

History of the American real estate bubble

Here are three takeaways:

  1. Booms are followed by busts (duh). At the end of the bust, prices will be were they would have been if pre-boom prices had continued.
  2. Lenders should not encourage buyers with underpriced risky mortgages as they lead to bubbles.
  3. Besides economic costs, there are a lot of social costs to boom-bust bubble cycles.

6

Half of the homebuyers in San Francisco are Software developers

About half of the homes bought in 2018 were by individuals whose employment has roots in software. The next biggest buyer segment was finance.

7

Toronto is the fastest growing city in both Canada and the U.S

Based on census data, reported by Ryerson’s Centre for Urban Research and Land Development, the City of Toronto’s population was the second fastest growing metropolitan area, and the top growing city among all central cities in Canada and the United States.

8

Nine facts about the New York City housing market that will make you glad you live somewhere else

There are plenty of things about New York’s housing market that would make you think twice about moving to the city.

9

Lone star bushwhackers 

The truth hurts. But what hurts more is a lie that people believe to be true.  It is the promise of the internet. In the short run, it delights and then soon disappoints. Call it fake news or fake (paid) reviews, anonymous website comments, users with fictitious names on twitter, reddit or any other social media sites, it’s easy for them to take you down a notch, spew hate or just be juvenile when they are hiding in the bushes. Newspapers no longer allow anonymous comments, too much rage and idiocy.  

This story “The restaurant owner who asked for 1-star Yelp reviews” outlines one man’s struggle with online extortion. I’ve experienced this myself with my airbnb, an amazon return and when browsing youtube and other sites. The internet will be a much better place when there is more transparency and the lone star bushwhackers, platform extortionist, and anonymous soapbox anarchists are rounded up and run out of town.      

10

What to read next:

Honesty in real estate advertising.

Last week on Kitchner Waterloo Real Estate News: weekend psychology, walking tours, home prices, Fair Housing Plan, Airbnb, hotel occupancy rates, open houses, google, smart homes, Alberta, San Francisco, 10,000 steps

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