An Upswing in the Market?

It has often been said that what happens in the Toronto real estate market follows in Waterloo Region a short time later. I have found this to be very true.

With this in mind, I find an article in the Toronto Sunday Star to be very encouraging. Nobody has predicted that numbers (sale prices and sales volumes) will return to 2007-08 levels, but this article seems to speak differently.

For sure, buyers who have been sitting on the sidelines for the past six months are getting back into the game. Multiple offers ove the ask price have been fairly rare over the past six months.

We have seen some positive changes in the market here since March. Maybe this will continue into the summer.

Here is the article from the Sunday Star

Why do we lose clients?

As we travel through life and our real estate career, relationships sometimes drop off and we lose clients for an unknown reason, except for, "Gee, we haven't talked in a long time". Here is an article I just tripped across on the internet by Ken Brand, who is a Prudential Real Estate manager in Houston, Texas.

He is saying there are four basic human needs that we must feed to maintain a relationship:
1. People Seek SIGNIFICANCE
2. People Crave CERTAINTY
2. People Desire an IMPROVED STATE OF BEING
4. You’re Peachy-Keen, They’re KAPUT

It's a good read... Check it out here on AgentGenius.com

April 2009 MLS Statistics

Some good news statistically. Every month since January the statistics have shown a narrowing of the gap in terms of unit sales year to year. In April, we're almost back to even with last year's numbers. Prices are a little soft, reflected in a statistic of a 2% drop, although many agents feel this number is a little behind and it's actually a little bigger drop than that. Buyers are still feeling that they should get "a deal" and negotiating hard.

As you follow the news, there are lots of indicators that we're past the worst.

Here are the monthly statistics for April, 2009.

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 255,568	$262,641	$261,630	$266,358
Percentage Change	-2.7%		-1.8%
Properties Sold	632	697	249	254
New Listings/Sales Ratio	59.8%	66.76%	48.9%	48.7%
Properties For Sale Now	2303	1932	1150	N/A

Dealing with difficult to insure properties

This article appeared in Realtor Edge recently...

The ability to obtain property insurance is a critical component of any real estate transaction. Without home insurance, a buyer cannot obtain a mortgage, and without a mortgage, the transaction falls apart.

But insurance companies have tightened the rules for obtaining insurance and have become less willing to insure some types of property. Issues such as old wiring or furnaces more than 20 years old, among other things, raise red flags of concern for insurers.

REALTORS® should be aware of the growing number of home insurance problems faced by would-be home buyers and how insurance requirements can affect a real estate deal. It’s important to know how to protect your buyer through the proper use of clauses and forms and how to advise sellers on ways to make their property insurable.

REALTORS® should raise the subject of insurance early on in the relationship with their buyers at the same time that they are informing them of the other expenses that they will normally encounter.

What insurers look for
When looking at a home, insurance companies consider the age and condition of the house, including the electrical system, plumbing, heating, wood burning appliances, oil tanks and structural components. They will also want to know if the home is to be owner occupied, rented or left vacant. Insurance companies also look at the individual applying for insurance. Individuals with a number of previous claims, a history of payment problems, policies that have been cancelled, declined or lapsed, a poor credit rating or convictions for insurance fraud are likely to see their applications declined or a surcharge added to their premium.

If you are working with a buyer and you feel that a particular issue on the property may cause concerns for an insurance company, it’s best to bring it to the buyer’s attention and recommend an insurance condition in the agreement of purchase and sale. Clause 8 of OREA’s Agreement of Purchase and Sale sets out the time limits for the buyer’s solicitor to perform searches relating to the property including determining whether the building may be insured against risk of fire. The buyer is allowed until the earlier of thirty days past the requisition date as noted on the offer or five days prior to completion. In effect, this makes the offer conditional upon the buyer obtaining fire insurance on the property.

However, rather than rely on the pre-printed wording of clause 8, a prudent salesperson, when dealing with a property that may be difficult to insure, should address that issue with a condition specifically developed for use in those circumstances including OREA’s INS-1 Condition- Obtaining Insurance, and INS-2 Condition – Obtaining Insurance – Cost Not to Exceed.

It’s also always a good idea to recommend a home inspection which could uncover potential insurance issues whether you are working with a buyer or a seller. Sellers, armed with a pre-listing inspection report outlining potential problems with their home, could take care of any necessary repairs in order to make their property insurable before it goes on the market. In addition, a home inspection report, provided by either the seller or the buyer, and given to an insurance company, may make it easier to obtain insurance.

Keep in mind, insurance should be arranged as soon as the offer to purchase is accepted to allow enough time for the insurance company to review an application for insurance. It’s not a good idea to wait until closer to the closing date because if the company refused to write the insurance, the buyer would not have time to arrange insurance elsewhere and the closing of the transaction could be in jeopardy.

The best place for your buyer clients to start when obtaining insurance is to ask the insurance representative who insures their current home, apartment or automobile.

That representative already has insurance information about the buyer and many companies offer a discount if they insure both auto and property. Buyers should work with their insurance broker to find an insurer that covers the type of property they are considering purchasing. For example, some insurance companies will underwrite only homes in certain geographic areas; others may not insure homes with underground oil tanks or homes that are over 50 years old.

In cases where your buyer cannot obtain insurance in the regular market, there are substandard and specialty markets available. However, they do not deal directly with the public. An insurance representative may be able to arrange insurance for the buyer, but premiums are usually higher and coverage may be less.

Although REALTORS® are not expected to be insurance experts, they should be aware of insurance concerns and know how to protect clients by recommending conditions in an offer or advising sellers on how to rectify problems prior to listing the property. REALTORS® can learn more about insurance concerns in OREA’s continuing education course called Insurance Concerns for Buyers.

Mandatory Home Energy Audits Update

A few weeks ago, I wrote this article about new legislation to make home energy audits a mandatory part of the transaction when a property is sold in the province of Ontario. The bill is under review at Queens's Park and some significant changes have been made, although not finalized.

The Standing Committee conducted a clause by clause review of the bill. During that process, the government made several amendments in a number of areas. For example, the mandatory home energy audits will no longer apply to leases or commercial properties and, in fact, will only apply to single family residences. The government also added a provision that allows a buyer to waive their right to receive an energy audit report provided they do so in writing.

Some of the issues they discovered were:

a) The results of an Ipsos Reid poll suggest that energy efficiency is not a very important factor in a purchaser’s decision-making process. Any number of items such as price, location, proximity to public transportation/work and safety of area are vastly more important to consumers than energy efficiency.

b) On average it takes a minimum of four to six weeks to obtain a home energy audit report which will have a negative impact on desired closing dates.

c) Home energy audits will become part of the offer process, thus an area of negotiation between the buyer and seller. As a result, buyers will likely have to bear the cost of the audit and will not be entitled to any rebate. On the surface, it seems to me that it will be a bigger issue in older homes than newer ones.

d) There are also a number of technical issues that will mitigate the use of energy audits. For example, there are no clearly defined energy audit standards. Also, there will be a tremendous shortage of qualified energy auditors and the costs related to energy audits are likely to rise as a result of that shortage.

It looks like the process will continue along, but is obviously going to take some time in its new form.

Say No to McGuinty's Tax Grab

It has often been said that history repeats itself, and we all know this to be true. But the McGuinty government should hope that their upcoming plans to implement the Harmonized Sales Tax does not follow what happened with the GST and the Mulroney government in 1990 and 1991.

The Mulroney government knew that tax reform was needed to fix a problem with the manufacturers tax which disadvantaged Canadian manufacturing exporters. Their solution was the GST. With hindsight, I think most government people would agree the concept was good. But truly, it could not have come at a worst time. Canada was burrowed in a recession that lasted for several years. The addition consumer tax only made things worse. Adding consumer taxes at a time when you want to encourage spending is not a good idea.

Canadians reacted poorly to the new tax, and in the next federal election in 1993, Jean Chretien and the Liberals were elected to a majority and the Progressive Conservative Party went from a majority government to a party holding two seats nationally.

Here we are, fifteen years later, struggling through another recession and the provincial Liberals are about to increase consumer taxes by implementing the HST. Could this come at a worse possible time?

I fully understand the pressure on the government to keep their deficits manageable. Their revenues are down and expenses are up, but this is clearly not the time for this solution. We need to let them know that this plan is not acceptable at this time.

The housing industry has taken some major hits over the past year. With rising unemployment and consumer confidence down, many have chosen to defer a new home purchase. The Ontario Real Estate Association estimates that the new Harmonized Sales Tax will add an average of $ 2,000 to a home purchase. Where the services required were paying 5% GST, they will now be paying 13% HST for these services. The service fees of mortgage insurance premiums, legal costs, real estate commissions, and home inspectors, will all be subject to the higher tax rate. These additional taxes could price some buyers right out of the market at a time when we need to be helping these buyers, not slowing them down.

There are many other businesses and suppliers who will now be required to charge the double tax for their services. Accountants, architects, engineers, graphic designers and commercial artists will cost the consumer 8% more. Another area where harmonization will have a particularly negative effect is nursing home operators, whose clients will have to pay more and might not be able to afford it.

There have been rumours for some time that this day would come. The Maritimes and Quebec have changed over some time ago. Why would the provincial Liberals choose such an inopportune time to roll out this cash grab?

Canadian Real Estate Magazine article

This article appears in the May issue of Canadian Real Estate Magazine and is written by our own Mike Milovick.

Prospering in K-W

The start of 2009 has been very intense for me and my team – probably even busier than the record 2007 levels. I focus on income property in Waterloo. Kitchener – Waterloo- Cambridge is considered the province’s hot area with a lot of investor interest – in Waterloo especially, as it seems to be particularly well – insulated.

Although residential valuations have dropped somewhat from the previous year (4% in K-W), income property there remains in strong, strong demand. Our team is seeing lots of activity below $500,000 – and we believe this will continue.

From a statistical perspective, the upper half of the Waterloo market (properties of slightly more than $1 million) is still frozen due to the worldwide credit crunch. In fact, of the 39 that are currently on the market, the median price is $1.05 million and the average list price is $514,000. The issue isn’t a shortage of buyers, it’s a shortage of commercial money. Buyers are ready to buy, sellers are willing to sell, but there’s a shortage of financing.

Waterloo’s multi-family MLS sales year -to- year:

• 2009: 10 sales, multi-family, averaging $292,900, 71 days on market and selling for 95% of list
• 2008: 15 sales, multi-family, averaging $250,000, 20 days on market, selling for 97% of list

So sales are down 30%, prices are up 17% and properties are on the market 3.5 times longer than in 2008.
For income property, Waterloo is actually faring much better than any other areas in Ontario. I would have to think that a 17% increase in price seen in our marketplace relative to the same time a year ago is going to be tops, nationally.

For new clients coming in, they recognize that Waterloo is arguably the best spot in Ontario to park their money. However, buyers also feel that valuations should reflect the downward pressures felt in other cities. This isn’t the case. Buyers are quite amazed at the rigidity of sale price to list price ratio still seen.

Without a doubt, Waterloo income property and – in my opinion- student properties still represent the best opportunity in this market. Both universities are increasing enrolment. With small price declines seen in residential valuations, perhaps the best real estate strategy in Ontario is student housing in Waterloo.

Source: Mike Milovick, sales representative, Prudential Grand Valley Realty, Brokerage, Waterloo, Ont.

Welcome Mark Brenneman

Mark Brenneman has joined Prudential Grand Valley from the Homelife office. He was born in 1952, and grew up in Milverton before moving to this area 25 years ago. Among his accomplishments are his 4 daughters, ages, 32, 31, 26 & 24 as well as 2 grandsons.

Before getting into Real Estate, Mark worked in Tool & Dye as well as administration and management positions. In 1984 he obtained his Real Estate License and has won various awards for his efforts in the residential market.

Mark has had the opportunity to live and work in Honduras for three years, and been a member of the Rotary Club and the Chamber of Commerce.

When not working in the busy Real Estate world, Mar enjoy travelling!

Eleonora Kertesz

We welcome Eleonora, who has joined our Prudential team from the Homelife office.

She was born in Hungary, immigrating to Canada in 1974 at the age of 10. Her family settled in Langton, Ontario area and eventually moved to Cambridge 14 years ago. Her family includes her husband Tom, son Tommy 23, daughter Katie 22, and a granddaughter Jaime-Lynn.

After working as a hairstylist for 15 years, she took up Real Estate focusing on residential for which I have been licensed for 8 years. She has won numerous awards and sells new construction as well as resale.

When she is not working in the busy Real Estate world, she enjoys reading and gardening!

March 2009 MLS Statistics

Here are the monthly statistics for March, 2009.

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 252,744	$254,443	$255,074	$253,094
Percentage Change	-0.7%		+0.7%
Properties Sold	497	608	209	236
New Listings/Sales Ratio	54.0%	77.3%	39.8%	54.9%
Properties For Sale Now	1458	1212	1094	N/A

Prudential Convention in Las Vegas

I am away right now and heard a very dynamic speaker this morning with an incredible story. Perhaps you have heard his story. His name is Dick Hoyt and he runs marathons and triathalons with his son, Rick, who has cerebral palsey. Next month, they will do their 27th Boston Marathon and 1,000th competition.

There was hardly a dry eye in the house. Just an incredible bond between father and son.

Here is a youtube video I found with their story.

Watch Out for Mortgage Penalties

With mortgage rates at near all time lows, it is very important in these times to pay attention to early payout penalties before a seller puts their home on the market. Lately, we have been finding that newer mortgages have some things in the fine print that need to be watched.

It is common knowledge that lenders charge an early payout fee (penalty) when the mortgage is paid out prior to maturity. The two most common penalties are:
- a three month interest penalty
- a differential rate for the balance of the term between the higher rate of the paid out mortgage and the current rate
- almost always the penalty is the higher of the two.

With the present low rates, the penalty could be much higher. We heard of one recently where the penalty to pay out was $ 27,000! Today, five or ten thousand is not uncommon.

It is very important to do this research before a property is listed. This falls into the list of things that, if there is a surprise, it is a lot better to find out earlier than later.

You Kind of Had to be There

Home inspections have become an every day occurrence for real estate agents over the past ten years. For sure, that is a good thing. Real estate agents and buyers themselves usually can't be expected to be an expert on such things as electrical, plumbing and building code issues. Inspectors have come to be an integral part of the transactions.

For some real estate agents, they don't see the value of being present at an inspection. It takes a long time... there are lots of telephone calls and clients needs to attend to... there are only so many hours in a day and it is just a matter of where spending your time is of the most value. These agents also sometimes don't necessarily encourage their buyers to be present either. They'll make a superficial lockbox appearance and slide out.

Being present or not doesn't change the facts about the house, but it can affect how the problems are perceived.

The inspector wants to be thorough, and wants to do a good job for his client, and certainly has to be concerned about his liability should something not be addressed. But the problems must be kept in context. Every real estate agent will tell you about home inspector's statements that have sent red flags up when taken the wrong way or improperly explained. To me, two simple questions need to be asked to these statements: How much would it cost to fix the problem? and What would be a reasonable expectation on how long before this problem needs to be fixed?

Things can be addressed much easier when the buyer and the agent are present and can be shown the issues at hand. A meeting later in the day with a visual of a printed sheet just don't cut it. For liability purposes, an inspector will use words like "may" and "possibly" a lot. I understand why they do it... they're just being careful. That's what the buyer hired them to do, but it certainly can be taken to an extreme. A five year old roof or furnace "may" need to be replaced some day. An accurate statement that needs to be explained further. If you're not there, it may lose something in the translation.

Home inspectors have their limitations, too. They work hard to keep up to date on issues, building codes, and rough estimates on repair costs. But truly, they can't be expected to give an accurate estimate on repair or replacement costs on a particular matter. Sometimes the buyer needs to take the inspector's advice and get an accurate estimate from a tradesman on what the costs to fix the problem will be.

Remember, knowledge is power. The real estate agent can often add another angle to a home inspection issue. If you weren't there and didn't see the issue, it's a little hard to add a credible fix to the problem.

You kinda had to be there.

Our 2008 Award Winners

Congratulations to all our Award Winners, who excelled in production over the past year. All will be recognized at our annual Awards Breakfast held on Thursday, March 26th at the Charcoal Steak House.

Chairman's Circle, Gold Award

Jose Bairos

Scott and Lisa Hube

Mike Milovick

Li Li


President's Circle Award

Nina Deeb

Dorinda Orser Team


Leading Edge Society

Christian Krieger

Mary McMurran

Nino Orasanin

Kazem Zardkanlou

Eric Klimstra


Honour Society


Ken Bisson

Paul Dawson

Rena Miller

Janet Good

Tamara Martin

Jade Ho

Lucy Schito

David Kivell

Marie Miller/Jerry Jarman

Sachin Naphade

Debbie van der Schans


Rookie of the Year


Amanda Maxwell, Cambridge

Debbie van der Schans, Kitchener



Fifteen Year Legend Award

Jose Bairos

Finally Some Goods About the Economy

I know we all talk about how the press always puts the bad news on the front page and seems to make an effort of spreading bad news. With the way the economy has been for the past six months, I think they are in their glory. But, surpising enough, the last two days has brought news that it appears that the recession has "bottomed out".
This Canadian Press article which appeared in The Record today shows several signs in the United States that things are going in the right direction.
Time passes quickly. Many economists predicted that fourth quarter in 2008 and first quarter 2009 would be the worst. Guess what! That quarter will be over in a couple weeks!
Around our two offices, things seem to be picking up like a traditional spring market. Agents are busy with buyers and sellers. I read recently on an American real estate blog I follow that things appear on an upswing in many areas there as well after a two year slump.
Let's hope it keeps going.

Moving On Up

I ran across this photo several times in the past week and I really don't know its source. It certainly falls in the category of "often thought but seldom spoken."

A couple people have commented this past week that I have been slacking off on the blog, which I will acknowledge and apologize sincerely. I have been extremely busy and had a week of holidays in there, too. We're back on track now.

February 2009 MLS Statistics

Here are the monthly statistics for February, 2009.

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 246,846	$260,055	$245,689	$249,699
Percentage Change	-5.1%		-1.6%
Properties Sold	369	494	154	218
New Listings/Sales Ratio	49.0%	62.0%	35.2%	58.1%
Properties For Sale Now	2019	1768	953	684

Sunshine Kids Update

Here are some good works being done across the country through Sunshine Kids donations.

In Halifax, Sunshine Kids made a donation to the Halifax Children's Hospital (IWK Health Centre) towards a new nurse/patient calling system in the Children's Cancer Ward.

In Toronto, Sunshine Kids has supported Sick Children's Hospital with the purchase of five computerized IV units for the cancer/oncology department.

In Vancouver, Sunshine Kids is assisting Sick Kids Hospital with funds towards creating a recreation games room for patients.

There are several trips planned for this year. A trip from Halifax will be going to Texas to a "Country Hill Event" in June, 2009. A trip from Vancouver is going to Steamboat Springs, Colorado in March, 2009 for Winter Games. A third trip from Ottawa is planned for New York for a "Broadway Break" in July, 2009.

It's really nice and rewarding to see our hard work come to fruition.

Pat Melhuish, our Canadian president is presently working on an Ontario Gala Dinner and dance to be held on Dixie Road Mississauga on May 29th. I will pass along the details when I get them.

January 2009 MLS Statistics

Here are the monthly statistics for January.

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 249,972	$263,247	$239,405	$251,640
Percentage Change	-5.1%		-4.9%
Properties Sold	255	383	106	177
New Listings/Sales Ratio	29.1%	41.2%	22.0%	38.1%
Properties For Sale Now	1855	1620	876	483

Upcoming RECO Update Courses locally

I often get asked by staff for a schedule of local RECO Update courses. As most of you know, the K-W Board runs the RECO Update course every month in the board's downstairs classroom. If you wish to attend, you need to register through OREA, either online or via telephone. The fee has now been reduced to $ 60.00 and the book is no longer a handout, but a pdf file online. You can register by phone at 1-866-411-6732. Make sure you have your OREA number before you call.

Here are the upcoming dates in Kitchener:

March 18 (Larry Cerqua)
April 8 (Angie Asadoorian)
May 13 (Gwen Agboat)
June 24 (Angie Asadoorian)

New Federal Budget and Real Estate

There was not a lot of stimulus in the federal budget to affect us in the real estate industry. The only change was one that was in the works for some time.

The limit for borrowing from your RSP to purchase a home has been increased from $20,000 to $25,000 in the Home Buyers Plan. This plan has been around since 1992 and the increase is more of a housekeeping change to reflect the increases in house prices since the plan's inception. If you're not already aware, the plan allows you to borrow money from your existing RSP without paying tax on it. The funds to have to be paid back over time to avoid paying ta on the money.

The other change that is of interest to home owners is tax credits being granted over the next 12 months for doing home renovations. It is designed to help stimulate the economy by getting consumers to spend money. On the surface, it looks like a good idea to me.

You can read the article for more details in the Waterloo Region Record.

It Pays To Be Green

This is a reminder for home owners on these cold January days that there are numerous grants available to Ontario home owners to upgrade your home and save energy. Rebate grants for upgrading your furnace, air conditioner, hot water heating system, windows, and insulation are available.

The steps to Getting Started are explained here.

The Rebate Chart showing the amounts you can get back are also posted.

You need to have an audit done before you start, and then apply for the grant after the work is completed. You can get up to $ 10,000 back through the program.

HomeEnergyOntario.ca

Waterloo Region Affordable Home Ownership Program

This is just an update on an existing program run by the region. They have decided to extend the program one last time to March 6, 2009. They will be selecting about another 185 applicants after that date.

For those not aware, the program provides low to moderate income households with the downpayment loan of 5% towards the purchase of a a home. There are rules that apply and they can be found on the Region's website at www.region.waterloo.on.ca/aho. The application form is on the website as well. The buyers only have until March 30th to enter into an agreement to purchase, but there is no deadline on when the closing must occur.

The main criteria for eligibility include:
1. Maximum family income of $68,000
2. Maximum purchase price of $226,000
3. Presently do not have an interest in a home
4. Plan to live in the home as primary residence.

If you are a renter and have a family income under $ 68,000, it may be an excellent time to buy a home. The downpayment is covered, interest rates are extremely low, and there's a "buyer's market" when looking for a house.

You should call a Prudential agent today and get working through the process. As they say, time is of the essence!

Prudential Cares Grant

Prudential Cares Grants are available from Prudential Financial for your good works in the community. If you have spent a minimum of 40 hours per year volunteering in 2008, your group is probably entitles to a $ 250.00 US grant from Prudential on your behalf.

You can download the application form on PREA Centre under Community Programs, or see Goran or me. The deadline for this year's application is March 9, 2009.

Ensure the facts are correct

Some of you may have seen this article which was written by Merv Burgard in this month's Realtor Edge Magazine. His "Legalbeat" article appears there every month. Merv is a lawyer in London, Ontario and writes and teaches legal courses for the Ontario Real Estate Association.

As a Buyers agent it is very important that you check Teranet, MPAC, the municipal tax bill (if available) and DEFINITELY the property history (if it was sold through MLS previously) before they put an offer in place. Counting on the information from the listing is simply not enough.

LEGALBEAT: CHECK OWNERSHIP THOROUGHLY

The buyer signed an offer to buy a house in her own name but when the bank needed someone else on title, her mother was added to the Deed. Three years later she decided to sell the house and listed it with the same REALTOR® that helped in her purchase.
She was the only person signing the listing which had the usual clause: "6. Warranty: I represent and warrant that I have the exclusive authority and power to execute this Authority to offer the Property for sale or lease and that I have informed you of any third party interests or claims on the property which may affect the sale or lease of the Property".

The house did not sell and was relisted at $299,900. The buyers made an offer for $300,000 which she accepted. A few days later she changed her mind and told the REALTOR® that she was not going to close the deal because she was not happy with the price. She then saw a lawyer who told her that there was no deal because her mother had not signed the listing or the offer.

The buyers sued for specific performance and the court allowed that action. The evidence was that the mother was fully aware of the listing and the offer. She did not fully defend the proceedings. The court decided that the facts of this case clearly showed that the seller had her mother's authority to sign the listing and offer. On the facts the property is unique and the agreement can be specifically enforced.

McLeod v Schmidt 2007 CanLII 31753

MERV'S COMMENTS

Of course, there is more to the story. The seller is also suing her REALTOR®. She claims that he knew that her mother was a co-owner and that it was his job to add her as a seller on the listing and obtain her signature on the APS. He says he did not know that and was never told of the co-ownership.
This case shows why it is important to check ownership at the time of a listing. Ways to verify this include calling the sellers' lawyer, checking with MPAC, using GeoWarehouse or Teranet or looking at a tax bill. If you are the buyers' REALTOR® and want to protect them from unnecessary lawsuits, don't rely on the listing - do some of these checks.

Legislation Coming for Home Energy Audits

The Ontario Legislature has recently passed a second reading of a private member's bill (Bill 101) that will make it mandatory for home sellers to provide their buyers with an energy audit of the home.

Home Energy Rating Act 2008 will mean that buyers will be able to have an accurate estimate of heating and cooling costs. Also, it will encourage owners of older homes to do some retrofit work to save energy costs on furnaces, windows and doors.

As the proposed legislation reads presently, it will be phased in over the next few years. The reports will become mandatory:
a) for builders of new homes - January 1, 2010
b) for home sellers entering into a contract to sell - January 1, 2011
c) for landlords entering into lease agreements with tenants - January 1, 2012

You can read the proposed bill here.

2008 Yearly MLS Statistics

2008 was certainly a different year. We entered the year hoping to avoid getting caught in the American meltdown, and ended the year finding out that U.S. troubles were much bigger than we thought, and our attachment to their problems were unavoidable.

The numbers for the year are strange. In late spring, the volume of sales started to decline, but oddly enough, the prices continued to rise. Historically, this has never happened, and by October, the prices had stopped increasing and are now level or in a marginal decline.

The other strange thing, is how the Kitchener-Waterloo market at this point in time, does not appear statistically to be facing the downturn as much as Cambridge. To my knowledge, there is no reason for this, and I would expect this difference to level out.

The real bad news is the new listings to sale ratio. In Cambridge, for the year, the ratio has now dropped below the dreaded 50% level. This means that when you list your house, you have less than a 50% chance of selling. Not good.

Many forecasters are seeing a turn around in the spring or second quarter. Let's hope they are right. The general feeling around the office in early January is that buyers and sellers seem to be starting to take action after months of "wait and see". Let's hope that keeps up.

Here are the numbers:

	K-W This Year	K-W Last Year	Cambridge This Year	Cambridge Last Year
Avg. Sale Price	$ 264,367	$248,882	$256,044	$242,793
Percentage Change	+6.2%		+5.4%
Properties Sold	6111	6811	2521	2991
New Listings/Sales Ratio	61.0%	70.6%	48.3%	58.6%
Properties For Sale Now	1562	1231	847	736

December 2008 Monthly MLS Statistics

Here are the monthly statistics for December. I will post the 2008 annual within the next day or so.

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 257,076	$247,073	$245,442	$245,954
Percentage Change	+4.0%		+0.2%
Properties Sold	221	303	93	124
New Listings/Sales Ratio	52.9%	91.0%	44.6%	79.1%
Properties For Sale Now	1562	1231	847	736

A Brand New Year

I had a good conversation with my accountant, George Szczepski, yesterday as we went over some company financial statements. Of course, the conversation turned to the economy and the future of the housing market.

George thinks we are going through a "correction" rather than a recession. I tend to agree with him. With the exception of the car industry, our local economy is very sound. It's the external factors, mostly the US factors that have pulled us down. And, whether things are going north or south, we are a herd of cattle, following the one in front of us.

The stock market and the financial industry in the US is a mess. Something was going to happen sooner or later to correct the situation. People were earning millions of dollars in bonuses for managing funds that were losing money.

So... we are "correcting" as we speak. Let's hope it doesn't take too long.

Investing in real estate is still a good thing. The factors over the past few years that people have complained about were the high cost of oil and the high Canadian dollar. Well, it appears that those issues have gone away. It's just the confidence we need to get back.

Happy New Year.

Merry Christmas!

As we enter the holiday season, this article on the front page of the Waterloo Region Record caught my attention this morning.

A father-son coaching partnership in Waterloo Minor Hockey has won an Ontario award from the hockey coaches association for the work with the house league team they coach in Waterloo. The remarkable part of the story is that the son Tony, is 12 years old and has Down Syndrome.

You can check out the article HERE. It's a great story, and really appropriate for the holiday season.

Having raised two sons, I have learned and strongly believe that children become a product of their environment, or as they say, "the apple doesn't fall far from the tree." You can bet that when the kids on that team grow up, they won't have a clue how many games their team won or lost, but for sure, they will remember the coaches.

Hats off to Mark and Tony... and Merry Christmas!