KW3 on polar vortexs, rent, supply and demand

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Frosty

Sure it was cold the other day, -24C is as cold as I ever remember it being here in Kitchener-Waterloo. And like most people, I don’t like winter. I spend most days huddled by my pot bellied stove with a mug of hot chocolate. (Well, I would if I could). But on that coldest of cold days I happened to have a lunch date at Ethels in UpTown Waterloo and I decided to “embrace winter” and walk the 15 minutes to the restaurant. 

I put on my parka and my warmest hat and you know what? It wasn’t bad. It felt kind of great conquering the elements.   

Global warming aside. This is earth. We have weather. Get over it. 

The rent’s too high

This should be no surprise. Rents should follow real estate prices, so if the price of real estate goes up, rents will follow. Having said that, I’m like an old timer now, like remembering when a bottle of Coca~Cola costed a nickel. So, I often find myself saying, “you pay how much for rent?” Anywho, according to padmapper we have one of the fastest growing rent rates in Canada (again).    

Economics 101

A house in my neighbourhood (on Alexandra) sold last week for 10% over asking price. I showed it to some clients and we agreed that it was a little awkward and needed work, so we did not put in a bid. (We thought the price was a little high for what you could get in other neighbourhoods). I don’t know how many bids it had. But I suspect only two. Not a lot of homes are on the market and I don’t think we will get any real bump in inventory this month. That is why it makes no sense to wait for spring to sell. This article lays out the simple laws of supply and demand and the motivations of buyers and sellers.




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