Renting, Or Living At Someone Else's Expense?
Something to keep in mind: in real estate, markets can shift quickly! You're welcome to browse here to your heart's content. If a move isn't in the cards within the next six months, we'd encourage you to keep up to date regularily with trends and conditions. If you've got real estate questions, we've got your answers. Get in touch - we'd love to be your introduction to the exciting world of home ownership!
Straight To The Point
The housing market has changed enormously since I started this career almost 16 years ago. When I started, you used to be able to buy a solid starter home with some room to grow and an attached garage for about $225,000. Then that magic number quickly jumped to $250,000, soon skipping right over $275,000, and sat at $300,000 for a short stint. $325,000 became $350,000, which still allowed some beginners to do it all by themselves. Then the 2017 spring market hit, and then COVID after that. Now, that number is between $650,000 and $800,000 depending on the neighbourhood... and maybe we need to talk about just how much you want that attached garage.
What I'm saying is Waterloo Region has just kept going up, with the exception of a few small areas that I would not let you buy into if given the opportunity to be your Realtor. The Light Rail Transit is causing people who have information-based occupations to choose to live in the Region, as they see this infrastructure as being likely to support future growth. Our colleges and universities attract thousands of smart minds, many of whom decide to stay and call our Region home. I know this to be true as I speak to these people all the time. Add in the fact that the City of Waterloo is at its urban boundaries and you need to go to the distant reaches of Southwest Kitchener and Southeast Cambridge to find fresh land to build, it's no wonder people are staking their claim to some property here.
So... $900,000?
Yes, $900,000 to get something solid. I also need to remind myself to update this webpage regularly.
I don't mean to be negative, but what I want to make sure is that you understand that you need to accept this reality and the challenges that this reality might present. Then you will be able to honestly take inventory of your abilities and finances and get everything that is in your control in order. Reason being, that is exactly what the people that are buying homes are doing. The people that are buying homes aren't complaining that this is crazy, they're aware of what they need to do, and then find a way to get it done.
Window shopping and looking at asking prices is not a relevant form of research, as the deviation from list price to final sale price in this market can vary significantly in both directions, depending mainly on the pricing strategy being employed by the seller and their agent. When you're making mental models of the homes you've seen online, or things you've noticed at at open houses, those homes were pretty much all too good to be true. I need to be a little blunt here, so you're better equipped to break the news to your wallet and your heart.
Great... What Now?
After visiting your bank for a prequalification and some starting figures, I would suggest that you see what your budget allows you to purchase and either come to terms with it, or decide if it might be time to swallow your pride and ask your parents if they can give you some financial assistance, if there is a chance for it. Hopefully your folks will understand that it isn't really you that has been squandering all types of excess cash, as the reality is that the affordability of homes to average incomes keeps going down year over year. If you are in a multiple offer situation with three or more other Buyers (which is still a frequent occurrence these days - especially in desirable areas) you can count on the fact that one of those competing Buyers are putting in their offers with some assistance from the Bank of Mom & Dad. Do you think more than 5% of first time homebuyers in Toronto are doing it themselves, on even a semi-detached home? I don't – how could they? I have great mortgage specialist that you can contact, but great service and good rates do not create affordability (sorry).
Truth Is
...we might be looking at a semi-detached home, townhouse or apartment style condo, which all have their unique benefits. I'll tell you one thing – even though it might not quite have that white picket fence, it'll be all yours and you'll understand what pride of ownership feels like. If you have the time to visit Buying a Lifestyle, you should also be able to start to create a vision for yourself, of what that first home looks like to you
Reach out to us. The Watty Way is here to help, and nothing is more satisfying for us than getting someone into their first home. It's because that look on your face when you're walking around your first home, planning your very first dinner party, is just so darn cute!
